Element 25 secures final approval for WA manganese mine expansion
Australian manganese producer Element 25 has received final approval for the expansion of its Butcherbird mine in Western Australia, with the company now cleared to increase the mine's production capacity to 1.1-million tonnes a year of manganese concentrate.
The updated feasibility study for the expansion study, released in January, estimates a capital cost of A$64.8-million for the construction of a large-scale processing facility.
With a projected average yearly cash flow of A$70.5-million, the Butcherbird expansion is expected to have a mine life of more than 18 years.
“This is an important milestone for Element 25 and brings us one step closer to realising the full potential of the Butcherbird project,” said the company in a statement.
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.
Element 25 has already secured all other necessary agreements and permits for the project, including water abstraction, heritage clearances, Native Title, and pastoral agreements, following the successful completion of Stage 1 pilot operations at the site.
The Butcherbird mine serves both the traditional steel industry and emerging new energy markets.
The company intends to use the expanded production at Butcherbird as feedstock for its first-of-its-kind battery-grade high purity manganese sulphate monohydrate (HPMSM) processing facility, planned in Louisiana, US. This facility is being developed in partnership with General Motors and Stellantis. The HPMSM project has garnered strong support from the US government’s Department of Energy, with Element 25 recently securing $166-million in grant funding for the initiative.
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