ASX-listed developer Element 25 is speeding up efforts to expand its Butcherbird project, in Western Australia, seizing the opportunity presented by a resurgence in manganese ore prices.
Following a feasibility study published in January, Element 25 is poised to boost production at Butcherbird to 1.1-million tonnes a year of manganese concentrate, requiring a capital investment of A$98.8-million.
The decision to progress with a Stage 2 expansion project aligns with the current uptick in manganese ore prices, said MD Justin Brown on Monday.
Prices in recent weeks have rebounded strongly with current pricing for 44% high-grade material quoted at $6.93/dmtu, about 60% higher than the quoted pricing in early April.
The rebound in prices follows a period of depressed pricing throughout 2023, which came to a halt when the extent of damage at South32’s Groote Eylandt manganese mine, in Northern Territory, became clear. Production at Groote Eylandt will be disrupted until 2025.
Key focus areas for E25 include process optimisation, front-end engineering design activities, project financing and permitting.
Expansion of the Butcherbird processing facility is an important step in providing feedstock for the planned battery-grade high-purity manganese sulphate monohydrate project to be built in Louisiana, US in partnership with General Motors and Stellantis.