【Ferro-alloys.com】Butcherbird Manganese Project –Operational & Shipping Update
• The MV Aquamarine SW left Port Hedland on 24 May 2022 with 35,002 tonnes of a special high silica manganese concentrate blend on board.
• FOB sale price for this cargo was higher than for any of the previous shipments because of buoyant manganese ore markets.
• A further shipment of approximately 35 to 40kt of normal contract material is expected to be despatched prior to the end of June 2022.
• Provisional payments received for the current shipment with final payments for both shipments expected before 30 June 2022
• Equipment to reconfigure primary comminution circuit to aid plant de-bottlenecking has been mobilised.
• Preventative maintenance optimisation plan implemented to improve plant uptime and operational efficiencies
Element 25 Limited (E25 or Company) (ASX:E25) is pleased to advise that a shipment comprising 35,002 tonnes of Butcherbird manganese concentrate departed Port Hedland aboard the MV Aquamarine SW on 24 May 2022.
The contract price received was higher than for previous shipments due to the buoyant prevailing manganese markets,which helped to offset the higher than forecast diesel and shipping costs which remain above long-term trends due to ongoing geopolitical and COVID related issues around the world.
Manganese ore markets have remained strong through Q2 2022 with 44% index material remaining well above US$7 /dmtu CIF Tianjin.
Feedback on the handling properties of E25 concentrate ore remains positive from logistics providers to consumers. The marketing team will continue to look for opportunities to place additional conventional and non-conventional material into the current market whilst strong markets conditions prevail.
About the Butcherbird Manganese Project
E25’s Butcherbird Manganese Project is a world-class manganese resource with current JORC resources of more than 263Mt of manganese ore. In May 2020, the Company completed a Pre-Feasibility Study (PFS) with respect to developing the deposit to produce manganese concentrate for export to generate early cashflow with a modest capital requirement10. Stage 1 of the Project development plan is complete and E25 has commenced shipping ore to offtake partners.
The PFS also highlighted the Project’s potential for significant growth beyond the initial Stage 1 production volumes (the studies examined the potential for a 2X and 3X expansion to Stage 1 within 12 months of initial commissioning), and the Company expects to expedite the expansion of the Project in 2H FY2022.
In addition to the concentrate export business, the Company has completed extensive research & development and laboratory test work into the production of high purity manganese products including battery grade manganese sulphate (HPMSM) and High Purity Electrolytic Manganese Metal (HPEMM). The work has highlighted that the Butcherbird ores are highly amenable to an ambient temperature, atmospheric pressure leach process, resulting in a very efficient extraction of the manganese into solution, the key requirement for the cost effective and sustainable production of HPMSM and HPEMM.
The Project straddles the Great Northern Highway and the Goldfields Gas Pipeline, providing turnkey logistics and energy solutions. The Company plans to integrate renewable energy into the power solution over time to target a zero-carbon footprint for the Project, which is expected to also reduce energy costs. A cleaner, lower carbon flowsheet and high penetration renewable energy will place Butcherbird at the forefront of sustainable high purity manganese production.