Firebird Metals Ltd has received a major boost on the path to production for the proposed manganese sulphate (MnSO4) and manganese tetra-oxide (Mn3O4) plant in China by signing an MoU for the supply of manganese ore.
The non-binding MoU is with French multinational mining and metallurgy leader Eramet and covers the supply of manganese ore for the first stage of operations at the proposed plant.
Through this agreement, which specifies an annual supply of 80,000 tonnes and 20,000 tonnes delivered quarterly, the parties will work towards a long-term supply agreement by 2026, following the completion of financing and during plant construction.
Journey to production
This positions Firebird to meet future operational requirements and represents a crucial milestone in the company’s journey toward becoming a low-cost and near-term producer.
The agreement follows successful testing of a 200-kilogram sample of ore from Eramet’s Moanda mines in Gabon, which is recognised as the world’s largest manganese mining operation.
From this sample Firebird produced battery-grade MnSO4 (high-purity manganese sulphate monohydrate) and manganese tetra oxide (Mn3O4) at its R&D centre in Jinshi, China.
Strong foundation
Firebird managing director Peter Allen said: “I am very pleased to announce that Firebird has entered into a MoU agreement with Eramet, a world-renowned supplier of manganese ore and a truly high-calibre partner.
“Securing this reliable and strategic supply of manganese ore marks a pivotal step in accelerating our journey to production and building a strong foundation for sustainable cash flow generation.”
Eramet ore and solution through the steps of process.
About the MoU
Stage One of operations at the proposed plant aims to produce 50,000 tonnes per annum of battery-grade MnSO4 and 10,000 tonnes of Mn3O4 utilising third-party ore.
The agreed annual supply volume exceeds the 66,000 tonnes per annum identified in Firebird’s feasibility study with the additional tonnage serving as a strategic buffer, mitigating potential disruptions across the logistics chain and safeguarding uninterrupted operations.
In the longer term, Stage Two operations remain firmly focused on leveraging Firebird’s 100%-owned Oakover Project, strategically located 85 kilometres east of Newman in Western Australia’s East Pilbara region, once production commences.
This phase is forecast to expand annual production to approximately 300,000 tonnes of MnSO4 in China, alongside 100,000 tonnes of battery-grade MnSO4 produced in Western markets.
Unique LMFP strategy
“Firebird has made rapid progress in the execution of our unique LMFP [lithium manganese iron phosphate] strategy, attracting and securing high-profile partnerships that reinforce the strength of our strategic vision and increasing confidence in our ability to deliver on key milestones,” Allen said.
“This agreement with Eramet reflects our commitment to establishing a vertically integrated operation and positions us to deliver on our long-term strategy of supporting the clean energy transition by becoming a key supplier of manganese for LMFP batteries.
“The company and I look forward to building a strong partnership with Eramet to deliver value for all stakeholders.”
Shared intent
The MoU reflects the shared intent of Firebird and Eramet to progress the collaboration into a formal, long-term supply agreement. This is contingent upon Firebird achieving key milestones, including securing project financing, commencing construction of the processing plant and initiating ore requirements for production.
It is important to note that the MoU is non-binding and does not constitute a legally binding agreement.
Through its subsidiary Comilog, Eramet operates the Moanda mines in Gabon. Since operations began in 1962, these mines have been a cornerstone of global manganese production, extracting 7.4 million tonnes of ore in 2023, with 6.6 million tonnes successfully transported.