Butcherbird Manganese Operations, Western Australia
Battery Grade High Purity Manganese (HPMSM) Development – Louisiana, USA
In January 2024, Element 25 Limited (E25, the Company) released a Feasibility Study (FS) on the proposed expansion of its 100%-owned Butcherbird Manganese Operations in Western Australia (WA) to target manganese concentrate production of 1.1 million tonnes per annum (Mtpa). The FS demonstrated strong economics with robust economic returns and rapid capital payback.
Expansion of the processing facility at Butcherbird is an important step in providing feedstock for the Company’s planned battery grade high purity manganese sulphate monohydrate (HPMSM) project to be built in Louisiana, USA in partnership with General Motors LLC and Stellantis NV3.
E25 is now, via a dedicated owners team supported by selected external contractors and consultants, advancing detailed design, planning and procurement activities for the Stage 2 expansion in parallel with financing.
In parallel with expansion activities, the Company suspended Butcherbird’s current production operations, aiming to reduce operational cash outflows and re-focus resources and available cash on implementing the expansion plan outlined in the FS.
50,540mt of manganese concentrate was shipped on 27 January 2024. Approximately 15,000mt of manganese concentrate was subsequently transported to Port Hedland and will form part of a shipment scheduled to be loaded in early May 2024 (estimated). Stockpiles have now been depleted in line with care and maintenance activities on site, with haulage winding back and ultimately ceasing in early March 2024.
The current schedule anticipates operations to recommence in approximately 11 months following project financing being secured, when E25 plans to increase annual production to 1.1 million tonnes per annum of manganese oxide concentrate. Further detail and an updated schedule will be provided as the project team works through front-end engineering and design (FEED) activities.
Northern Australia Infrastructure Facility Strategic Assessment
During the quarter, the Northern Australia Infrastructure Facility (NAIF successfully completed a strategic assessment of the Butcherbird Stage 2 Expansion Project. The Expansion Project is now proceeding to the detailed due diligence phase of the NAIF assessment process.
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