Firebird Metals Ltd (ASX:FRB, OTC:FRBMF) has secured a crucial environmental permit for Stage 1 of its Battery-Grade Manganese Sulphate Project in Jinshi, Hunan Province, China.
The permit is the second of three critical approvals needed for the plant’s construction and operation, with the final energy permit expected in the coming weeks.
Strong local support
The timely approval underscores the strong support Firebird is receiving from local authorities in Jinshi.
It also represents a big step in the company's progress towards becoming a key player in the high-purity manganese sulphate market, which feeds the expanding electric vehicle battery market.
Firebird managing director Peter Allen said: “We continue to execute steadfastly on our vision and set the platform for Firebird to become a near-term low-cost high-purity manganese sulphate producer.
“We have now been awarded two of the three critical permits required for the company to complete construction of the plant and commence stage-one operations.
“The speed at which the company is progressing in China is testament to the significant levels of support we have had and continue to receive from the Jinshi Government and we look forward to receiving the energy permit in the coming weeks.
Most exciting position since listing
“Firebird is in the most exciting position the company has ever been in since listing in 2021, as we look to progress and finalise offtake discussions, make a final investment decision in late Q4 and work toward starting production in late 2025.
“We are also pleased to sign multiple memorandums of understanding (MoUs) for the use of our leach residue supporting the environmental permit application, which highlights the exciting commercial opportunities and synergies that are on offer for the company, due to the strategic location of our plant.
“Being part of a circular industry forms a key part of Firebird’s zero waste process, where all key inputs, reagents, customers and consumers of residue are located in close proximity to our plant.”
As part of the environmental impact assessment (EIA), Firebird signed MoUs with four industrial plants, including three cement manufacturers and one brick factory, to supply leach residue—a by-product of the manganese sulphate production process.
Among these, Badao Cement Plant, in Jinshi Industrial Park, will use up to 100% of the leach residue in its cement production.
This agreement aligns with Firebird’s zero-waste strategy and highlights the environmental benefits of circular industry operations.
What’s next?
The company is expected to make its Final Investment Decision (FID) by the end of 2024, with construction estimated to take 12 to 15 months. Operations are projected to commence by late 2025.
In addition to this latest milestone, Firebird has already secured a safety permit and several minor permits, including the water and soil monitoring permit and the workplace health and safety permit.
With its focus on the electric vehicle battery sector, Firebird aims to capitalise on the growing demand for manganese in batteries, positioning itself as a low-cost, high-purity manganese sulphate producer.