Element 25 Ltd (ASX:E25, OTCQX:ELMTF) managing director Justin Brown joins Proactive’s Jonathan Jackson to provide an update on its Butcherbird Manganese Project in Western Australia where it aims to capitalise on the recent increase in manganese ore prices with a potential restart. This would includee selling existing stockpiles and processing run-of-mine (ROM) stockpiles.
Manganese ore prices have recently surged to a four-year high of US$8.30/dmtu for 44% CIF Tianjin, China. In response, E25 is assessing the feasibility of processing both ROM and low-grade stockpiles at Butcherbird. The current high manganese prices present a significant opportunity for immediate cash flow if production is determined to be viable.
The rise in prices follows supply disruptions at South 32’s Groote Eylandt operations, caused by damage from Tropical Cyclone Megan. This has led to a forecast manganese supply disruption of up to 12 months, with a production restart targeted for Q3 2025. Additionally, political instability in South Africa has intensified competition for the available supply, contributing to the rapid price increase.
E25's board is evaluating the cost structure for a potential restart, aiming to monetise existing stockpiles without affecting the expansion plans for Butcherbird. The expansion project aims to produce high-purity manganese sulphate monohydrate (HPMSM) in Louisiana, USA, in partnership with General Motors and Stellantis.
Brown highlighted the opportunity to generate short-term cash flow and the steps required for operational readiness. Discussions with OM Holdings Limited regarding recommencing ore sales are also underway.