Euro Manganese Inc (ASX:EMN, TSX-V:EMN, OTCQX:EUMNF) has made further headway at its cornerstone manganese asset as it prepares to erect its milestone demonstration plant.
In a market update on the Chvaletice Manganese Project, EMN told investors that work is advancing as planned on parts of its demonstration plant, which is currently being assembled in China for testing and then shipping to the project site.
Once those components arrive in the Czech Republic, the battery materials company hopes to bring the large-scale manganese sample hub online in 2022’s second quarter.
A definitive feasibility study (DFS) is also tracking on schedule and within budget, with around 60% of the physical work completed by the end of September.
The Chvaletice Manganese Project site in the Czech Republic.
Chvaletice to help accelerate EU green transition
Speaking to the progress at Chvaletice, EMN CEO Marco Romero said activities were ramping up and that industry trends remained positive.
“The electric vehicle and battery industries continue their rapid growth, and demand for battery-grade manganese products is rising along with them.
“We continue to work hard to prepare our project for its commercial development, resolute in our belief in its importance for Europe.
“To enable its successful execution, we continue to add talented individuals to our team.
“Our Chvaletice project is poised to help accelerate the EU’s green transition as Europe moves to a more circular, less carbon-intensive and sustainable economy.
“And, because Chvaletice is designed to recycle historic mine tailings to produce an essential battery raw material in the Czech Republic, we stand to make an unprecedented contribution to the continent’s rapidly emerging electric vehicle (EV) and battery supply chain.”
The steel frame that will one day house the demonstration plant’s modules is under construction.
Demonstration plant on track for Q2 start-up
With the assembly of the demonstration plant’s modules, EMN is a step closer to producing large-scale samples of high-purity manganese products.
Cold commissioning — which involves testing the plant’s equipment to ensure it’s up to par — should kick off this month, before the components are delivered to site early in the new year.
From here, the manganese project developer expects to move to hot commissioning — an early-stage processing check — and bring the hub online in quarter two, 2022.
In late September, EMN also secured a key construction permit, allowing it to upgrade two buildings at the Chvaletice site that will hold the demonstration plant modules.
As it prepares to bring the hub online, Euro Manganese is in recruitment mode: it’s currently on the lookout for technical and administrative workers to join the team.
Looking ahead, roughly 55% of the plant’s first-year production has been allocated to five prospective customers, which have signed non-binding memoranda of understanding with EMN.
A mixer, which will combine ore from the Chvaletice site with process water, is placed on a steel frame.
Pilot plant restart
As work on the demonstration plant continues, Chvaletice’s pilot plant was restarted during October.
First brought online in 2018, the small-scale hub is designed to produce small samples of high-purity manganese products for prospective customers.
The first deliveries from the pilot plant are expected in quarter one of 2022.
Headway on feasibility study
Through its current feasibility study, the manganese project developer is looking at ways it can use locally sourced reagents throughout the extraction and purification process at Chvaletice.
It’s also considering how carbon dioxide and hydrogen can be recaptured and reused during the production cycle, potentially reducing the project’s carbon footprint.
In addition, the feasibility study is evaluating the potential economic and environmental benefits that could come from securing renewable and green energy sources to power Chvaletice.
A piece of steel is welded into place as a demonstration plant module is assembled.
Life cycle assessment
As it accelerates towards a new phase at the Czech manganese asset, EMN is well on its way to completing a final environmental and social impact assessment early next year.
In tandem, the company has engaged specialist firm Minviro Ltd and leading battery raw materials audit and advisory firm RCS Global Group to conduct a life cycle assessment on Chvaletice.
EMN regards this activity as a key component in its commitment to environmental excellence.
Market outlook continues to strengthen
Work on EMN’s cornerstone asset comes as demand for battery materials is firming up.
During the past year, several EV, battery and cathode manufacturers have announced plans to use manganese-rich battery chemistries.
According to data from Bloomberg, NEF, CPM Group and other market research firms, demand for high-purity manganese and other essential battery metals such as lithium, nickel and cobalt is rising rapidly.
At the same time, the projected gap between supply and demand for battery-grade manganese continues to grow.
Based on recent estimates from Cairn Energy Research Advisors and CPM Group, global production of high purity manganese sulphate monohydrate – the manganese product used by most lithium-ion battery cathode makers – will need to increase 24-fold compared to 2020 levels in order to meet anticipated 2030 demand.
As Chvaletice continues to advance, EMN is preparing to fuel the boom as Europe’s only primary producer of battery-grade manganese products.
Two thickener units, bolted to steel frames, will be connected to form part of a demonstration plant module.
Meanwhile, the hunt for a new CEO could be coming to an end as EMN prepares to enter the next phase of its corporate development.
Commenting on the recruitment strategy, EMN board chair John Webster said: “It has been a very robust process and we are encouraged by the number and quality of the people who were attracted by the opportunity.
“We expect to announce the appointment of our new CEO soon.”