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Firebird Metals receives key safety permit for battery-grade manganese sulphate plant in China

Published 28/05/2024, 10:16 am
© Reuters.  Firebird Metals receives key safety permit for battery-grade manganese sulphate plant in China

Advanced manganese developer Firebird Metals Ltd (ASX:FRB, OTC:FRBMF) has received a key safety permit for the construction and operation of its planned stage one battery-grade manganese sulphate plant in Jinshi, Hunan Province, China.

This is one of three critical permits required to commence construction of the plant, which will utilise third-party manganese ore to produce high-purity manganese sulphate, with the other two being environmental and energy.

Other critical permits

An Environmental Impact Permit Report has been completed and has gone through initial Expert Panel review with full approval expected by the company within the current quarter.

The company has also completed an Energy Consumption Report, which has been lodged with the local Jinshi Government and full approval is also expected this quarter.

Firebird managing director Peter Allen said: “As we continue to efficiently advance the necessary permits for our battery-grade manganese sulphate plant, I am pleased to announce that we have received the first of three critical permits, being the safety permit, and expect the remaining two permits to be received by the end of June.”

In-country support

Efficient receipt of the safety permit and advanced status of remaining key permits highlights the strong in-country support Firebird has to establish itself as a key high-purity manganese sulphate producer.

In China, eight major permits are required for construction and operation which can proceed concurrently with feasibility studies, engineering assessments and financing endeavours, with the critical permits being environmental, safety and energy.

These include the Project Initiation Permit from the National Development and Reform Committee, which has been received.

Others are the Water and Soil Monitoring Permit, Workplace Health and Safety Permit, Social Stability Permit and Building and Construction Permit with the first two 30% complete and awaiting detailed design while the other two are to be completed.

Path to production

“We are moving at a rapid pace on the ground in China and that is due to the hard work of our leading manganese team and the strong level of in-country support we have and continue to receive.

"Importantly, we continue to tick all the boxes in the delivery of our high-purity manganese sulphate strategy and have defined a low-cost, near-term pathway to production.

“We expect to make a Final Investment Decision in the second half of 2024, immediately commence construction activities and work extremely hard towards commencing operations in late 2025.”

Toward construction

Once all key permits are obtained, with the expectation that the remaining two permits will be received before the end of the financial year and following the anticipated Final Investment Decision in the second half of 2024, Firebird will be ready to immediately begin construction on the plant.

Construction is projected to take only 12-15 months, with operations expected to commence in late 2025.

READ: Firebird Metals fields positive study for low-cost, battery-grade manganese sulphate production in China

The company’s Battery Grade High-Purity Manganese Feasibility Study was released in early May with projected capex of US$83.5 million and opex of ~US$609/tonne for the production of battery-grade manganese sulphate.

Read more on Proactive Investors AU

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