Name of the Project
K.Hill battery-grade manganese project.

Location
Botswana.

Project Owner/s
Battery metal development company Giyani Metals Corporation.

Project Description
K.Hill will be one of the biggest high-purity manganese sulphate monohydrate (HPMSM) projects in the world. 

HPMSM is a refined precursor material used in the production of cathode powders for lithium-ion batteries deployed in electric vehicles (EVs).

A preliminary economic assessment (PEA) published in July 2023 evaluates a base case scenario that considers a single production line with a feed capacity of 200 000 t/y to process high-purity manganese oxide (HPMO) material to produce HPMSM over a 57-year life-of-project (LoP). The LoP includes a 49-year life-of-mine plus eight years of stockpile rehandling.

The PEA also evaluates an upside case, which assumes the construction of an additional production line from Year 5 of operations to increase total feed capacity to 400 000 t/y, reducing the LoP to 31 years.

The project includes a crushing facility, including a run-of-mine pad and stockpiles, a three-stage crushing plant and a crushed material bin. It also includes a processing area, including grinding, extraction, purification, fluoride polishing, crystallisation, product storage and handling; water treatment, reagent storage and tails handling; a sulphur dioxide plant; plant infrastructure and utilities, including steam and air plants; and low-voltage switch rooms.

A 4.5 MW solar plant covering 7.6 ha will be built 1.2 km west-northwest of the processing plant entrance gate. The large-scale demonstration plant that emulates the continuous process of the proposed full-scale K.Hill commercial plant is under construction in South Africa. The plant will validate the process flowsheet, mitigate commercial processing plant risk and facilitate offtake qualification.

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 $1.21-billion and an internal of return of 33%, with a payback period of two years.

Capital Expenditure
$282.64-million.

Planned Start/End Date
Project financing is expected in 2026, construction in 2027, ramp-up of the commercial plant in 2028 and full production in 2030.

Latest Developments
Giyani Metals is making headway in progressing the definitive feasibility study (DFS) for the project.

Giyani Metals, in preparation for the project’s projected establishment, has also launched a demonstration plant in Johannesburg, South Africa, which has successfully produced HPMO, and is on track to produce HPMSM.

The demonstration plant has provided numerous learnings, which have fed directly into the DFS and will be leveraged for the construction of the commercial plant in Botswana, which will have an output of 80 000 t of HPMSM.

The demonstration plant will also significantly derisk the bigger commercial K.Hill plant, as the former’s results will be used to drive efficiencies at the commercial plant.

Further, Giyani has received a letter of intent from Export-Import Bank of the United States for up to $225-million long-term debt with a repayment period of up to 15 years, for construction of the project.

This nonbinding agreement is “just the first step” in securing possible funding, and an “important milestone that validates Giyani as a preferred strategic developer of battery-grade manganese products”, CEO Charles FitzRoy has said.

FitzRoy has said that it exemplifies the growing recognition of the importance of manganese in EV and energy storage system markets in the US.

The company will also focus on providing manganese byproducts to the agricultural sectors in various parts of Africa and abroad.

Going forward, FitzRoy says Giyani Metals aims to further align the company’s national and global positioning with that of the government of Botswana, considering the country’s intentions to more broadly diversify its industrial and mining base, with less focus on diamonds.

“This approach aligns with our vision of creating sustainable economic opportunities within Botswana and our commitment to economic empowerment of local citizens,” FitzRoy has said.

Key Contracts, Suppliers and Consultants
SRK Consulting (feasibility study); Mintek (metallurgical testwork); Tetra Tech (metallurgical testwork programme); Wood (lead DFS consultant); and Minopex, a DRA Global Company (demonstration plant operation).

Contact Details for Project Information
Giyani Metals Corporation, email info@giyanimetals.com.