ASX-listed Element 25 is progressing its Butcherbird Expansion Project (BBX) in Western Australia, with engineering, contracting and funding activities advancing as the company works towards lifting manganese concentrate output to 1.1-million tonnes a year.

In a project update on Tuesday, Element 25 reported that lead engineer Altris Engineering had started detailed design work under an integrated project team model, with Element 25 engineers embedded in the Perth-based firm to accelerate optimisation studies and cost reviews. Early process-improvement work had already delivered potential savings and increased execution flexibility, the company said.

Element 25 is targeting project construction once financing and long lead procurement are completed. The company has secured core equipment for the expanded flowsheet, including primary and secondary mineral sizers from MMD and a 600 t/h logwasher from KISA, which is now ready for transport to site.

The mining services tender process is nearing completion, with a shortlist in place and final assessments under way.

FUNDING FRAMEWORK TAKING SHAPE
In June, the Northern Australia Infrastructure Facility approved a A$50-million senior debt package for BBX, comprising A$42.5-million in senior debt and a A$7.5-million cost-overrun facility. Element 25 also raised A$10-million through a placement at A$0.28 a share to support early engineering and long-lead procurement.

Negotiations are ongoing with several parties to secure the balance of construction funding.

The BBX feasibility study, released in January, confirmed a 1.1-million-tonne-a-year production target. Updated mineral resource and reserve estimates underpin an 18-year mine life, with the Butcherbird ore reserve doubling to 101.4-million tonnes at 10.4% manganese.

Element 25 plans to supply both the steel market and feedstock for its planned high-purity manganese sulphate monohydrate plant in Louisiana, in the US.

Discussions with potential offtake partners are well advanced. Element 25 said Butcherbird’s concentrate continued to attract interest owing to its high silica content, low deleterious elements and strong physical competency – characteristics sought after by silico-manganese smelters.

Logistics partner REGROUP is finalising an expanded haulage agreement to support increased volumes, with optimisation of road transport and export schedules under way. Product will continue to ship through the Utah Point facility at Port Hedland.

Element 25 is also advancing core operating and business-intelligence systems to support pit-to-port optimisation and real-time decision-making for the long-life operation.

The Butcherbird expansion is fully permitted under Western Australia’s regulatory framework. Updated mining and closure plans, along with works approval for the expanded plant, were finalised in late 2024 and early 2025. Tailings capacity for the first six years of expansion is already in place.

The project schedule continues to be refined as engineering progresses and commercial agreements are finalised, with financial close, procurement and construction contracting flagged as key upcoming milestones.