Element 25 has strengthened its position as a low-cost manganese producer by releasing a robust feasibility update for the Butcherbird project in Western Australia, building on key approvals secured.
The updated study targets a significant expansion in annual manganese production to 1.1 million tonnes (Mt), with a strong operational model to enhance returns and project longevity.
Supported by an increased ore reserve of 101.4Mt grading at 10.4 per cent manganese, the operation boasts a pre-tax net present value of $561.7 million, an internal rate of return of 96 per cent, and a rapid payback period of just 16 months.
The enhanced production model centres on deploying dense media separation (DMS) technology, replacing the previous ore sorting techniques trialled at the project.
The DMS method is expected to increase processing recovery to 83.7 per cent while improving product quality to an average grade of 31.6 per cent manganese.
“Projecting these results across the average operational period since the plant’s inception, the DMS circuit is expected to recover 96.15 per cent of the manganese processed by the DMS circuit,” the company said.
“A substantial increase in both recovery rate and the grade of manganese compared to our current ore sorting operations.”
The expansion plan is underpinned by low capital costs of $64.8 million, encompassing updated plant infrastructure, a larger camp facility, and the use of an expanded borefield to secure water supply.
The design also reflects operational learnings since Butcherbird’s initial production commenced in 2021.
The broader plan incorporates key upgrades, such as reducing ore loss and dilution during processing, and integrating effective tailings and water management systems.
Element 25’s broader ambitions are equally significant, as the company aligns the Butcherbird expansion with its proposed high-purity manganese sulphate monohydrate plant in Louisiana, US.
The plant aims to supply battery-grade manganese to electric vehicle (EV) manufacturers General Motors and Stellantis, unlocking new revenue streams in the burgeoning EV market.
Butcherbird being situated 1050km north of Perth and near key logistics routes further bolsters its viability. Manganese concentrate will be trucked to the Utah Point facility at Port Hedland, with competitive costs derived from existing haulage agreements.
Expanded mining production and process commissioning is currently scheduled to commence within 14 months from the final investment decision and securing project financing.
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