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Stellantis Completes First US$15 Million Equity Investment In Element 25
Element 25 Limited (E25 or Company) (ASX:E25) is pleased to advise the conditions precedent for the first investment tranche by global automaker Stellantis N.V. (Stellantis) comprising a US$15 million share placement in E25 have now been satisfied and this transaction has been completed.
- Global automaker Stellantis has completed a US$15 million (A$22.6M at A$1 per share) first investment in Element 25 after conditions of the companies’ agreement announced on 9 January 2023 were satisfied
- E25 will use proceeds from the investment towards its development of a battery-grade high purity manganese sulphate monohydrate (HPMSM) facility in the USA
- The agreement between Stellantis and E25 combines take or pay commitments for the supply of 45kt of HPMSM from the facility over five years and further funding of US$15M structured as a pre-payment agreement to be repaid out of HPMSM supplied to Stellantis
- E25 also has an agreement to supply General Motors’ USA Ultium Battery Plants with HPMSM, which includes a US$85M loan facility, taking E25 project commitments to US$115M.
This follows E25’s announcement on 9 January 2023 of the signing of a binding agreement (Agreement) with Stellantis to supply battery-grade HPMSM from E25’s proposed facility in Louisiana.
E25’s Agreement with Stellantis combines take-or-pay offtake commitments for 45Kt of HPMSM from the facility over five years with US$30M in two tranches of project funding towards the facility capital cost. Tranche 1 of the funding comprises a US$15M equity investment in E25. The further key commercial terms are outlined in detail in Appendix A to the announcement in January1.
Completion of the first investment tranche represents an important step in the overall project financing, and in conjunction with E25’s recently announced US$85M financing facility with General Motors2, now takes project commitments to US$115M from two leading global electric vehicle manufacturers.
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Element 25 Limited
Overview
Element 25 (ASX:E25, OTCQX:ELMTF) is a manganese-focused company with 100 percent ownership of the largest onshore manganese deposit in Australia, which is currently producing high-quality manganese concentrate. The company’s Butcherbird Mine in Western Australia is currently producing around 365,000 tons per annum. The company is advancing towards 1 million tons (Mt) per annum by optimizing its engineering processes. Element 25 (E25) has set the pace by getting up and running quickly.
Element 25 has also moved quickly to progress its ambitions to be a globally significant producer of ethical high-purity manganese sulphate monohydrate (HPMSM) for supply to the fast growing EV battery raw material supply chains. The company has signed a binding agreement with Stellantis NV (NYSE:STLA) to supply battery-grade HPMSM from E25’s proposed USA-based HPMSM processing facility. Stellantis has further completed its first US$15-million equity investment in E25 in July 2023 towards the development of a battery-grade HPMSM facility in the USA.
Element 25 has also entered an off-take deal with General Motors (GM) to supply the car manufacturer up to 32,500 metric tons of manganese sulfate to support GMs annual production of more than 1 million electric vehicles in North America. Under this agreement, GM will provide an US$85-million loan to E25 to partially fund the construction of the new facility in Louisiana, USA, which will produce battery-grade manganese sulfate. Expected to be the first of its kind in the US, the facility will process manganese concentrate from E25’s mining operations in Western Australia to produce HPMSM.Manganese is Building Momentum
Sales of EVs have exceeded 10 million in 2022 with market analysts expecting the momentum to continue in 2023 and beyond. It’s clear that consumers and automakers are embracing EVs worldwide, with gigafactories springing up across the globe to support the EV transition. Yet, EVs require significant materials to support the increasing demand.
Manganese is essential in manufacturing the nickel-manganese-cobalt cathodes EVs require and is the cheapest and most abundant material available. Additionally, nickel and cobalt have significant supply constraints, while manganese does not. The relative abundance and high value in the use of manganese as a cathode material has prompted automakers such as Tesla, Volkswagen and Stellantis to turn to high-manganese cathodes to satisfy their supply chain requirements.
Manganese also has strong existing demand for usage in steel, aluminum products and specialty alloys. There is no substitute for the element in steel. Mining companies focusing on this vital element are uniquely positioned to serve both established and emerging industries.
The Future has Always Been Electric
Element 25 is committed to delivering on its strategy of producing battery grade HPMSM for EV batteries to power the global transition away from fossil-fuel-powered mobility.
The advancement of EV batteries requires a vast amount of cathode materials. Put simply, nickel and cobalt supplies simply cannot meet projected demand for New Energy Vehicle (NEV) growth.
By 2040 it is estimated that 58 percent of new vehicles will be EV or hybrid.
As demand continues to rise, EV battery makers globally are choosing to adopt manganese-rich cathode designs for safer, more cost-effective battery solutions and E25’s high-purity manganese strategy is ideally placed to feed these surging markets.
Advanced flowsheet development work undertaken in 2019 and 2020 has confirmed a simple, proprietary leach process for E25 ores which, when combined with offsets, will target the world’s first zero-carbon manganese for EV cathode manufacture. Flowsheet optimization for inclusion in upcoming feasibility studies is ongoing.
Strong ESG Credentials
Element 25 understands the importance of an excellent environmental, social and governance (ESG) rating for serving the EV market, as this rating directly reflects on the companies it supplies. The company is working towards producing zero-carbon, high-purity manganese by leveraging sustainable technologies at every step in its process through its Zero Carbon Manganese campaign. This campaign includes sustainable extraction, using renewable energy, low-carbon processing and carbon offsets. Element 25 has partnered with Circulor to provide real-time insights into its ESG status.
Element 25’s Butcherbird Mine has a Joint Ore Reserves Committee (JORC) compliant resource estimate indicating over 260 megatonnes of manganese ore. This significant deposit is Australia's largest onshore manganese deposit, with an estimated mine life of 42 years. The mine does not require blasting or dewatering, instead leveraging a simple mining and processing wash plant.
Importantly, Element 25’s board and management team has decades of experience across a range of key sectors including mining, legal expertise, mineral project development, corporate administration and operational excellence. The management team’s track record of success provides the company with a great platform to deliver on its planned milestones as E25 positions itself as a leading manganese player on the global stage.
Company Highlights
- 100-percent ownership of Australia's largest onshore manganese mine – the Butcherbird Manganese Deposit – comprising more than 260 million tons (Mt) of manganese ore in JORC resources.
- Long mine life of 42 years using only 20 percent of the global resource, significant potential to expand with further drilling.
- Currently producing high-quality manganese lump concentrate for the steel industry.
- Multi-staged expansion strategy to increase concentrate production and move into downstream processing to produce high-purity manganese sulphate monohydrate (HPMSM) as electric vehicle (EV) fuel for lithium-ion batteries.
- Expansion plans to increase ore production to 1 Mt per annum well advanced.
- Off-take and funding agreement with General Motors (GM) to supply the EV manufacturer up to 32,500 metric tons of HPMSM annually to support GM’s annual production of more than 1 million EVs in North America.
- GM to provide US$85 million in project finance for the HPMSM facility in Louisiana, USA.
- Offtake and funding agreement with global automaker Stellantis NV (NYSE/MTA/Euronext Paris:STLA) includes recently completed US$15-million equity investment to fund HPMSM short and medium term project execution costs.
- STLA is now Element 25’s largest shareholder with a 10.2-percent shareholding.
- STLA has committed to offtake for 15 percent of HPMSM production from the Louisiana facility.
- Element 25 is led by a management team with decades of experience in mineral project management, corporate administration and international law.
Key Projects
Butcherbird Manganese Project
Located in Western Australia, the Butcherbird Manganese Project is presently producing manganese concentrate for the steel industry. The mine has already reached production and is now optimizing its process to improve output. E25 is working towards producing high-quality HPMSM for use in new energy markets.
Project Highlights:
- Australia’s Largest Onshore Manganese Deposit: The Butcherbird Project has a JORC-compliant total resource estimate of 263 megatonnes of ore at 10 percent manganese. The deposit has an estimated mine life of 42 years and the potential to increase drilling in the future.
- Four-stage Growth Strategy: Element 25 has established a four-stage strategy as outlined below:
- Stage 1 (delivered): 365 ktpa
- Stage 2 (2023): 1 Mt per annum by optimizing engineering processes
- Stage 3: Produce sustainable high-purity manganese.
- Stage 4: High-purity manganese sulphate with zero carbon footprint
- Positive Feasibility Study: A feasibility study released in 2023 confirmed the technical and financial feasibility of producing HPMSM at a Louisiana location for sale to local and international offtake partners. Aside from indicating a net present value of US$1.66 million, the feasibility study also showed an environmental impact that is significantly lower than incumbent producers.
- Focusing on an excellent ESG Rating: Achieving and maintaining a great ESG rating is vital to serving the EV market. Element 25 has partnered with Circulor to provide real-time tracking and insights into its ESG rating throughout the entire operation.
Management Team
John Ribbons - Chairperson
John Ribbons is an accountant who has worked within the resources industry for over fifteen years in the capacity of company accountant, group financial controller or company secretary. Ribbons has extensive knowledge and experience with ASX-listed production and exploration companies. He has considerable site-based experience with operating mines and has also been involved with the listing of several exploration companies on the ASX. Ribbons has experience in capital raising, ASX and TSX compliance and regulatory requirements.
Justin Brown - Managing Director
Justin Brown is a geologist with over 20 years of experience in global mineral exploration and mining. He has been involved in the full spectrum of mineral exploration through to mining in a range of commodities. Brown has also held a number of board positions, including an executive role with Element 25 Limited since 2006. He has a strong track record of closing successful commercial transactions and brings a well-rounded set of skills to the management of the Company’s activities.
Sam Lancuba - Non-executive Director
Sam Lancuba is a chemical engineer with more than 40 years’ experience in the global fertilizer industry. Lancuba has worked in research and development, process engineering, manufacturing and management. Following 27 years at Incitec Pivot Limited, an ASX top 50 company, He has been providing expert consulting services for industry clients in Australia, New Zealand, USA, South America, Europe, India and China.
Fanie van Jaarsveld - Non-executive Director
Fanie van Jaarsveld is an experienced company director and has held numerous senior management and executive positions over a career spanning more than 40 years. With a demonstrated history of working in the mining and metals industry, van Jaarsveld is the managing director for OM Manganese which operates the Bootu Creek manganese mine in the Northern Territory and is highly skilled in mining, mineral processing and operational management. He has strong business development expertise and will be a key asset in achieving the company’s production targets at the current manganese operation as well as helping to guide the planning and implementation of the company's expanded production plans and the downstream production of HPMSM. van Jaarsveld has an ND in analytical chemistry from the Cape Peninsula University of Technology - Cape Town.
Sias Jordaan - VP Battery Minerals & Marketing Manager
Sias Jordaan has been involved in the stainless steel production and raw material supply markets as well as rare metals markets for over 25 years. Jordaan held various roles within BHP Billiton in South Africa, The Netherlands and Western Australia in the stainless steel, ferrochrome and nickel divisions. As a result, he has gained extensive experience in the procurement, marketing and logistics of various steel-making metals. Jordaan was also involved in the management team that commissioned the Ravensthorpe Nickel Plant. More recently he performed study work for Arafura Resources Ltd (2011-2015), specifically the Nolans Rare Earths Project located in the Northern Territory, including the study into a suitable offshore separation facility and the establishment of a Letter of Intent with a Korean-based partner. Jordaan has an accounting degree and is qualified as a chartered accountant in South Africa. He also holds a diploma in international logistics from the University of Navarra and is a licensed real estate and business agent in Western Australia.
Neil Graham - VP Battery Minerals & Development Manager
Neil Graham is a chartered chemical engineer with more than 30 years of international experience in the chemical and resources industries. His experience in greenfield and brownfield project development, driving operational change and delivering performance turnarounds has been gained in various managing director/general manager roles, across a breadth of organizations and locations. These roles have been European, Asian and Australian based with multi-nationals, such as Huntsman and Orica, and West Australian resources businesses.
Clint Moxham – General Manager Operations
Clint Moxham has joined the team as general manager operations. Moxham’s key responsibilities include statutory and operational oversight of the safe operation of the Butcherbird Manganese Mine, implementation and oversight of improved operational processes and continued improvement in plant preventative maintenance targeting improved run times to increase production. He is a vision-driven miner with a track record of delivering greenfield and start-up operations. Moxham has a reputation of safe operations with a career-long record of team management and mining operations success.
Ian Huitson - Study Manager
Ian Huitson is a mining executive with 33 years’ experience in executive, operational and technical roles in the manganese, chromite, gold, silver and nickel industries in Australia, Africa and Asia. Huitson has extensive manganese experience through roles as study manager at Shaw River Manganese (2012-2014), chief operating officer at Auvex Resources (2009-2011), group mining engineer at Consolidated Minerals Ltd (2005-2007) and resident manager at Consolidated Minerals’ Woodie Woodie mine site (1999-2005). In addition to the above, Huitson has executive management experience including roles as operations director and managing director at Monarch Gold Mining Company (2007-2009). Prior to this, he had 15 years’ experience as a mining engineer with WMC Resources, Dominion Mining/Plutonic Resources and the Walhalla Mining Company. He has a degree in mining engineering and is a fellow of the AusIMM. Huitson has completed multiple scoping and pre-feasibility studies throughout his career.
Goldfields Exploration Update
Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) is pleased to provide an update on gold exploration activities within the Company’s strategic Eastern Goldfields project portfolio.
- RC drill hole completed under high-grade Blackfriars gold prospect (Gidji JV)
- New Exploration Licence application expands land position along Randall Fault
The Blackfriars Target is located at the contact between the Black Flag Group and mafic and ultramafic rocks within the Boorara Shear Zone and shares the same geological setting as the >2 million ounce Paddington gold deposit along strike to the north.
Given the apparent similarities to Paddington, Blackfriars is a high priority target within the Gidji JV Project.
The Blackfriars aircore gold footprint stretches for at least 1 kilometre at greater than 1g/t Au and remains open along strike to the northwest on the other side of the Goldfields Highway.
The recent RC hole, GJRC028, tested beneath the high-grade result in aircore hole GJAC627, which ended in black shale with quartz-carbonate veining and sulphides and returned a result of 1m @ 11.8g/t Au and 6g/t Ag (46-47m EOH) (see ASX Release dated 8 April 2022).
GJRC028 intersected black shale and silicified dolerite with sulphide mineralisation and quartz stringers but was terminated at 130m due to difficult drilling conditions associated with running sands in the overlying Gidji Paleochannel.
Miramar’s Executive Chairman, Mr Allan Kelly, said the Gidji JV Project had the potential to host a new gold camp with multiple deposits but was significantly underexplored.
“Gidji is in a fantastic location within a major mineralised structure, between two major gold camps, Kalgoorlie and Paddington,” Mr Kelly said.
“Despite this, and the record gold price, the Project has had minimal effective historic exploration, and virtually no deep drilling, as evidenced by our ability to discover high-grade bedrock gold mineralisation with shallow aircore drilling only 150 metres from a major highway,” he said.
Samples from the RC hole have been sent for analysis and further aircore and RC drilling is planned.
The Company is also working towards obtaining approvals for drilling of other high-priority targets at Gidji including:
- Marylebone – multiple high grade gold results including GJAC562 (6m @ 2.2g/t Au and up to 28g/t Ag) associated with massive sulphide mineralisation in black shale
- Roaster – 2m @ 3.3g/t Au in GJAC577 – open along strike
- Eight-mile – potential northern extension of Northern Star Resources Limited’s 300,000-ounce “Runway/8 Mile Dam” deposit
- The Jog – gravity anomaly and magnetic depletion within jog in the Boorara Shear Zone
New Application
The Company has also further expanded its strategic Eastern Goldfields tenement portfolio with a new Exploration Licence Application south of the recently acquired Lake Yindarlgooda Project (Figure 2).
The “Venetian” Target, E25/649, covers a package of mafic rocks immediately adjacent to the Randall Fault and contains historic RAB drill holes with anomalous gold results within and along strike of E25/649.
Miramar will compile all historical data and work towards grant of the tenement.
Click here for the full ASX Release
This article includes content from Miramar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
E25 Secures Key Permit for USA HPMSM Site
Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to advise it has been issued with a Title V Air Permit for the construction of an Electric Vehicle (EV) battery grade high-purity manganese sulphate monohydrate (HPMSM) refinery in Louisiana, USA (Project) via subsidiary Element 25 (Louisiana) LLC (E25LA).
HIGHLIGHTS
- Permit has been issued for the proposed Project site in relation to which the Company recently announced commercial agreement with Veolia North America (Veolia)1.
- E25LA HPMSM Facility Title V Permit (the air permit) granted for the proposed construction and operation of E25’s HPMSM refinery in Ascension Parish, Louisiana.
- The air permit is a key requirement to commence facility construction at the Veolia site.
As part of the process, E25 completed a detailed assessment of expected emissions from the HPMSM refinery and provided this information along with supporting documentation to the Louisiana Department of Environmental Quality (LDEQ).
The E25 HPMSM refinery has been defined as a "minor source" for New Source Review2, federal hazardous air pollutant (HAP), Louisiana toxic air pollutant, or Title V (Part 70) purposes. Any source, including a temporary source, which emits or has the potential to emit any air contaminant (defined as particulate matter, dust, fumes, gas, mist, smoke, or vapour, or any combination thereof produced by the process(es) other than natural) requires an air permit.
LDEQ issued the draft Air Permit to E25 in early February 2024 and the final stage of the permitting process, prior to issuance, was a statutory public consultation period. This included a public meeting held in the local community on 18th April 2024 where feedback was supportive of the Project and the permit has now been issued.
Element 25 Managing Director Justin Brown said: “Receipt of the air permit is a critical milestone in achieving our goal of financing and constructing the first USA-based HPMSM facility in Louisiana, USA to supply critical battery raw materials to our partners General Motors LLC and Stellantis NV. Crossing this important threshold is a testament to the efforts of all involved and moves the Project closer to a final investment decision and commencement of Project execution.”
Figure 1. Proposed construction site for the Louisiana HPMSM facility close located with the Veolia North America acid plant.
About the E25 Process
Element 25 has developed an innovative, advanced processing flowsheet to convert Butcherbird manganese concentrate into high purity manganese sulphate monohydrate (HPMSM), a critical raw material for the manufacture of lithium-ion batteries. The proprietary flowsheet reduces energy consumption, virtually eliminates waste and delivers the lowest carbon intensity HPMSM globally based on public available information3.
The process offers a pathway to the delivery of expanding volumes of ethically sources, traceable, transparent HPMSM supply to US markets. Element 25 is developing a first of its kind processing facility in Louisiana to produce up to 135Kt per annum of HPMSM for US electric vehicle (EV) supply chains4.
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Resource Drilling Commenced at Butcherbird Project - Updated
Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to advise that resource infill drilling has commenced at the Company’s 100%-owned Butcherbird Manganese Project (Butcherbird or Project). E25 recently completed a Feasibility Study (FS) to expand the processing facility at Butcherbird to support manganese concentrate production of 1.1 million tonnes per annum1. The current reserve is constrained by the drill hole spacing in the inferred resource areas.
The additional drilling will provide infill data aimed at converting the inferred resources to indicated or measured categories to support the re-estimation of mine reserves. The increase in the “reserve tail” may open the project up to a wider range of potential financiers in addition to NAIF, who are currently undertaking due diligence2.
HIGHLIGHTS
- Programme comprises approximately 209 percussion drill holes for 6,270m targeting infill of existing inferred resources.
- Drilling to potentially extend current reserves of 7.2 years at 1.1M tpa concentrate production.
Figure 1: Summary of existing resources within granted mining lease.
The Project hosts a global resource of over 260Mt of manganese ore3 however the current reserves are limited to the areas which have been drilled out to a sufficient density to support measured and indicated classifications which are required as the basis for a statement of reserves. The current drilling programme has been designed to infill existing inferred resources to a sufficient data density, based on variographic analysis, to convert the inferred resources within granted mining lease M52/1074 to indicated and/or measured.
Note: There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised.
Figure 2: Drillhole collar location plan summarising existing and proposed drillhole collar locations.
At the completion of the programme, the new drilling combined with historical data will be used to recalculate the resource base to support a recalculation of the proved and probable reserves with the aim of supporting a longer mine life to support project financing activities for the Butcherbird Expansion Project.
The drilling programme is expected to take approximately four weeks. Samples will be submitted for assay and database integration, which will be immediately followed by a recalculation of resources and reserves.
Element 25 Managing Director Justin Brown said:
“This drilling programme will allow the global resource at Butcherbird to be recalculated with a higher degree of certainty which is expected to result in a signification conversion of inferred resources to measured and indicated which will support project financing by increasing the reserve tail beyond that covered by the existing 7.2 year mine life.”
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Drilling Commences at Butcherbird Targeting Reserve Extension to Support Financing
Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to advise that resource infill drilling has commenced at the Company’s 100%-owned Butcherbird Manganese Project (Butcherbird or Project). E25 recently completed a Feasibility Study (FS) to expand the processing facility at Butcherbird to support manganese concentrate production of 1.1 million tonnes per annum1. The current reserve is constrained by the drill hole spacing in the inferred resource areas.
The additional drilling will provide infill data aimed at converting inferred resources to indicated or measured categories to support the re-estimation of mine reserves and extend the life-of-mine (LOM) plan to ~20 years based on conversion ratios seen at Butcherbird previously. The increase in the “reserve tail” is important for project financing and can open the project up to a wider range of potential financiers in addition to NAIF, who are currently undertaking due diligence2.
HIGHLIGHTS
- Program comprises approximately 209 percussion drill holes for 6,270m targeting infill of existing inferred resources.
- Drilling designed to extend current reserves of 7.2 years to approximately 20 years at 1.1M tpa concentrate production.
- Reserve increase is an important component of securing project financing at favourable rates.
The Project hosts a global resource of over 260Mt of manganese ore however the current reserves are limited to the areas which have been drilled out to a sufficient density to support measured and indicated classifications which are required as the basis for a statement of reserves. The current drilling programme has been designed to infill existing inferred resources to a sufficient data density, based on variographic analysis, to convert the inferred resources within granted mining lease M52/1074 to indicated and/or measured.
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
E25 Optimises Plant Design as Butcherbird Expansion Accelerates Towards FID
In line with its strategic plan, Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is accelerating activities for the planned expansion of its Butcherbird Manganese Project in WA (Butcherbird or Project), as outlined in the Feasibility Study (FS) released in January 20241. Key areas of focus include process optimisation, Front-End Engineering and Design (FEED) activities, project finance and permitting. The Company is pleased to provide the following update.
The FS published in January 2024 outlined a compelling opportunity to expand production at the Butcherbird Mine to take advantage of the large resource base and increase commercial returns by increasing production to a nominal 1.1 Mt per annum of manganese concentrate at lower unit costs. The FS estimates a modest capital cost of $49.8M.
Element 25 Managing Director Justin Brown said: “The Butcherbird Project hosts a world-class manganese deposit with more than 260Mt in resources, which will underpin the mine as a long-life producing asset2. The decision to progress with the Stage 2 expansion project comes at a time when manganese ore prices are showing strong gains after a period of depressed pricing during 20233. The decline in prices came to a halt when the extent of the damage at South 32 Limited (S32) Groote Eylandt Manganese Mine became clear with S32 recently forecasting a disruption in production until 20254. Prices in recent weeks have rebounded strongly with current pricing for 44% high-grade material quoted at U$6.93/dmtu cif Tianjin, approximately 60% higher than the quoted pricing in early April.5”
INNOVATION AT BUTCHERBIRD
There have been important advancements, particularly in the FEED phase of the Butcherbird expansion, where the Company has optimised the plant's delivery while minimising design, cost, delivery risk, processing risks and improving energy efficiency and emission profiles. This update outlines the progress in engineering design and project management, processing plant enhancements, procurement, project scheduling, environmental initiatives, technological advancements, and the Company’s commitment to technical excellence, indigenous engagement, as well as social and environmental responsibility and sustainability.
Engineering Design and Project Management
E25 has engaged local specialist engineering firm ProjX to manage the engineering design phase and serve as owner’s engineer throughout project execution. ProjX will assist with engineering, procurement and construction management activities to ensure a streamlined and well-managed project implementation plan.
Operational Improvements
The project team has made strategic improvements to the initial plant design, enhancing operational efficiency and maximising productivity. Integrating a second-stage crushing system will process larger materials directly into the primary circuit. The feed bin and apron feeder have been upsized to optimise truck cycling times and minimise feed disruptions, which has the potential to increase plant utilisation and reduce bottlenecks. The secondary crushing stage has been optimised to handle specific material sizes, ensuring a seamless process flow and eliminating the need for additional screening and material re-handling, a key focus of the design methodology.
Mining equipment sizing optimisation modelling has confirmed equipment selection to minimise unit mining costs, rehandling and ensure continuous plant feed availability. Further studies will investigate the potential to introduce electrified mining equipment and minesite light vehicles to reduce carbon emissions.
Process controls are being designed to ensure that each principal processing stage can operate as close to maximum performance as possible whilst allowing for in-process surge points and redundancy to allow for scheduled maintenance without interrupting production. Automation is being implemented at each stage to optimise equipment set points and performance.
Water consumption reduction through the potential introduction of a thickener and intelligent recycling will reduce the impact on the local water resources while reducing bore field operational costs.
Inline analysers will enable dynamic feedback to process control systems based on desired product specifications and allow for the optimisation of product blends and sales pricing based on customer requirements.
Crushing and Screening Circuit
Through extensive review, E25 has identified significant improvements to the crushing circuit at Butcherbird. These enhancements are designed to streamline operations, reduce the frequency of plant stoppages, and optimise material handling efficiencies. Key consideration was given to the clay-rich nature of the ROM feed, and several design modifications have been made to the flowsheet to eliminate the impact of these materials. Consideration has also been given to minimising double handling of material, with direct truck dump feed as the principal feed method into a feed hopper.
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
E25 Secures USA Site for HPMSM Refinery
Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to advise it has entered into a binding term sheet (TS) with Veolia North America (Veolia) to secure a site for E25’s planned high-purity manganese sulphate monohydrate (HPMSM) refinery in Louisiana, USA (Project).
HIGHLIGHTS
- The greenfield site in Burnside, Ascension Parish, Louisiana, is located adjacent to an existing sulphuric acid production and regeneration facility owned and operated by Veolia.
- E25 secures a ~35-acre (14 ha) parcel of land at prevailing market rates from Veolia.
- Sulphuric acid, natural gas, water and return water agreements to be established in parallel with the land purchase agreement.
- Sulphuric acid to be supplied at agreed contract rates over a 20-year term via pipeline from the Veolia facility.
- Signing of a binding term sheet represents a significant step forward for the Louisiana HPMSM Project.
- Completion of the transactions contemplated by the TS are conditional on:
- Execution of definitive agreements by 30 June 2024.
- E25 obtaining project finance and reaching a final investment decision (FID) prior to 30 August 2024.
- E25 and Veolia to work closely to execute definitive agreements within the agreed timelines.
- The TS also includes provision for E25 to lease a temporary laydown area from Veolia during Project construction.
- The next anticipated milestone is the granting of the air permit, a key construction permit required for the Project.
Element 25 Managing Director Justin Brown said:
“E25 aims to be a leading source of high quality, vertically integrated, traceable and ESG and IRA-compliant battery material to the global electric vehicle industry. Construction of our HPMSM facility in the USA – the first of its kind there – requires a project site with the necessary services and utilities and access to sulphuric acid as a key reagent, to allow the Project to proceed. The Veolia site meets these requirements, and we are pleased to have signed this TS with Veolia as an important step forward in Project execution.”
The TS contemplates several parallel definitive agreements and completion is conditional on execution of these contract documents as well as securing project financing and E25’s Board reaching FID before 30 August 2024 (or such later date as the parties may agree).
The definitive agreements to be executed no later than 30 June 2024 in the TS include:
1. the Land Purchase Agreement;
2. the Sulphuric Acid Supply Agreement;
3. the Road Easement Agreement; and
4. the Utilities and Services Agreement and Temporary Lease Agreement.
Veolia North America CEO of Sustainable Energy Solutions Stu Thomas said:
“As part of our Green Up strategy, we are pleased to contribute to the vehicle electrification value chain alongside Element 25. This operation will be complementary to our Burnside facility, bringing positive economic impact to Ascension Parish, and also have a long-term societal benefit to the energy transition.”
E25’s civil engineering works for the HPMSM project have to date been based on the Veolia site. It brings together a number of important synergies to support the long-term competitiveness of the E25 facility. Under the Sulphuric Acid Supply Agreement, Veolia will provide long-term secure sulphuric acid supply and agreed tariffs.
E25’s application for an Air Permit, expected to be granted in the coming weeks, used the Veolia site as the Project location in terms of the approval process. The signing of the TS is an integral step in bringing these threads together to optimise the overall Project schedule.
Securing a Project site is a significant milestone in E25’s agreements with General Motors (GM), one of E25’s partners in the HPMSM project. GM have committed U$85M in senior secured debt funding to the Louisiana Project1. GM’s investment is in parallel to the investment by E25’s second offtake and funding partner Stellantis N.V. (Stellantis).
Project financing activities and detailed engineering are ongoing as the HPMSM team progresses the Project closer to FID and commencement of Project delivery. The Company looks forward to bringing further updates as these milestones are achieved.
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This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
South32 Reports Lower Manganese Output After Cyclone, Says Exports Will Resume in 2025
South32's (ASX:S32,OTC Pink:SHTLF) latest quarterly reportreveals how Tropical Cyclone Megan has impacted its Australian manganese operations in Groote Eylandt, located in the country's Northern Territory.
The company reported a 13 percent decline in saleable production of the metal at the location, amounting to a reduction of 352,000 wet metric tonnes over the nine month period ended in March of this year.
The cyclone, which wreaked havoc on March 16 and 17, unleashed rainfall of 681 millimetres accompanied by powerful wind gusts, marking it as the second strongest cyclone to hit the area in the past two decades.
The extreme weather inflicted damage on critical infrastructure at South32's manganese site, notably the wharf responsible for shipping manganese ore and a haulage bridge connecting mining areas to processing facilities.
Despite the setback, the company witnessed progress elsewhere, with aluminum production seeing a 1 percent increase year-to-date, with record production achieved at Hillside Aluminium and Brazil Aluminium ramping up.
For its part, the Cannington operation in Australia recorded a 15 percent uptick in payable zinc equivalent production, attributed to higher metal grades and effective mitigation strategies following adverse weather.
Illawarra Metallurgical Coal, which South32 has agreed to sell to Golden Energy and Resources and M Resources, saw a significant 60 percent increase in saleable coal production, driven by improved longwall performance. Conversely, Sierra Gorda experienced a 13 percent decrease in payable copper equivalent production due to lower planned copper grades.
Regarding the resumption of operations in Groote Eylandt, the company expects a delay due to the extensive damage.
Engineering studies are currently underway to assess the extent of the damage to the wharf and haulage road bridge, with the aim of informing the final schedule and capital costs for restoration. Preliminary estimates suggest that wharf operations and export sales are anticipated to resume in the third quarter of the firm's 2025 fiscal year.
Development and exploration updates
On the development side, South32 announced plans in Q1 to move forward at its Taylor deposit.
"We approved development of the Taylor zinc-lead-silver deposit at our Hermosa project, which is expected to deliver attractive returns over multiple decades and unlock further value as the first phase of our regional scale opportunity,” said CEO Graham Kerr. Taylor is located at the company's Hermosa project in Arizona.
This decision from South32 came after a comprehensive feasibility study confirming the project's potential to be a long-term, low-cost and low-carbon operation. The company expects to invest approximately US$2.16 billion in capital expenditure, and anticipates first production from Taylor in the second half of its 2027 fiscal year.
The company remains committed to other exploration and development activities at Hermosa as well. Future areas of growth include the Clark manganese deposit and polymetallic prospects like Peake and Flux.
Don't forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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