Butcherbird Stage 2 manganese expansion project, Australia – update


Name of the Project
Butcherbird Stage 2 manganese expansion project.
Location
The project comprises eight known manganese mineral resources in an estimated 600 km2 of the southern Pilabara region, in Western Australia.
Project Owner/s
Manganese developer Element 25 (E25).
Project Description
Butcherbird comprises eight known manganese mineral resources.
The project is based on the extraction and processing of the Yanneri Ridge and Coodamudgi mineral resources and reserves. It builds on additional resource delineation conducted in June 2024 and an updated mineral resource estimate completed in October 2024, which increased measured and indicated resources at the deposits.
The project, with an 18.3-year life-of-mine, will use 87% of measured resources and 77% of indicated resources within the Butcherbird resource base.
The project proposes the expansion of the operation to 1.1-million tonnes a year of manganese concentrate. It will use expanded opencut mining methods, a modified primary comminution circuit and a dense-media separation back-end solution to optimise grade and recoveries.
The concentrate production strategy complements and enhances E25’s plan to develop a proposed high-purity manganese sulphate (HPMSM) plant, in Louisiana, in the US, to supply offtake partners General Motors and Stellantis with HPMSM for electric vehicle battery cathodes.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$561-million and an internal rate of return of 96%, with a payback of 1.3 years.
Capital Expenditure
A$64.8-million, including contingency.
Planned Start/End Date
Expanded mining production and process commissioning are scheduled to start within 14 months from the final investment decision and securing project financing.
Latest Developments
E25 has received final approval for the expansion of its Butcherbird mine.
The receipt of the works approval follows the approval of the mining proposal and mine closure plan by the Western Australian Department of Energy, Mines, Industry Regulation and Safety earlier this year.
E25 has secured all other necessary agreements and permits, including water abstraction, heritage clearances, Native Title and pastoral agreements, following the successful completion of Stage 1 pilot operations at the site.
The company intends to use the expanded production as feedstock for its first-of-its-kind, battery-grade high-purity manganese sulphate monohydrate (HPMSM) processing facility, planned for Louisiana, US.
This facility is being developed in partnership with General Motors and Stellantis. The HPMSM project has garnered strong support from the US Department of Energy, with E25 recently securing $166-million in grant funding for the initiative.
Key Contracts, Suppliers and Consultants
Not disclosed.
Contact Details for Project Information
Element25, tel +61 8 6375 2525 or email admin@e25.com.au.
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