Element 25 Ltd (ASX:E25) has executed a multi-user access agreement with Pilbara Port Authority to use Port Hedland Utah Point facility for the bulk export of manganese from the company’s 100%-owned production facility at the Butcherbird Project.
Terms of the agreement are commercial in confidence but in line with Pilbara Port Authority’s normal operating terms and satisfy the company’s capacity requirement for the first stage of operations up to 390,000 tonnes per annum.
The company anticipates the first shipment from its world-class Butcherbird Project, which has current JORC resources in excess of 263 million tonnes of manganese ore, next month.
Shares were as much as 10.5% higher intra-day to $2.41 while the company's market cap is approximately $322.9 million.
“Milestone on path to first shipment”
E25 completed a pre-feasibility study (PFS) to develop the deposit to produce manganese concentrate for export to generate early cashflow with a modest capital requirement.
Robust economics and a low capital hurdle of less than A$17 million for the first stage of development of Butcherbird have allowed the company to deliver first production from the project in less than 12 months from the publication of the PFS.
E25 managing director Justin Brown said: “This is another important milestone on the way to our first sale of manganese concentrate, and we are excited to be closing in on our first shipment of Butcherbird’s material to our offtake partners.”
Sustainable high purity manganese production
The company has completed extensive research & development and laboratory test-work into the production of high purity manganese products including battery-grade manganese sulphate (HPMSM) and High Purity Electrolytic Manganese Metal (HPEMM).
This work has highlighted that the Butcherbird ores are highly amenable to an ambient temperature, atmospheric pressure leach process, resulting in a very efficient extraction of the manganese into solution - the key requirement for the cost-effective and sustainable production of HPMSM and HPEMM.
Manganese is emerging as an increasingly important ingredient for EV batteries, with potential supply constraints for nickel and cobalt forcing battery manufacturers to look to high manganese cathodes to produce the vast amount of cathode material required by the EV industry in coming years – and Butcherbird is ideally placed to feed this potential demand.
Advanced flowsheet development work in 2019 and 2020 confirmed a simple, unique, ambient temperature and atmospheric pressure leach process for E25 ores which, when combined with offsets, will target the world’s first Zero Carbon Manganese for EV cathode manufacture.
The company also plans to integrate renewable energy into the power solution over time to target a zero-carbon footprint for the project, which is expected to also reduce energy costs.
E25 is confident that a cleaner, lower carbon flowsheet and high penetration renewable energy will place Butcherbird at the forefront of sustainable high purity manganese production.