Element 25 makes first manganese sale

Close up of Manganese rock being moved on a conveyor belt.

Element 25 has sold its first parcel of manganese concentrate to OM Materials from the Butcherbird manganese project in Western Australia.

The sale was part of an offtake agreement for 100 per cent of the manganese ore produced from the first stage of the Butcherbird project.

The agreement stated the ore must range from a grade of 28-35 per cent, which was satisfied by the sale’s grade of 30-35 per cent.

Element 25 managing director Justin Brown said the fast delivery of this first sale was a credit to his team.

“Delivering the first material under the offtake agreement within 12 months of publishing the pre-feasibility study is a testament to the hard work and dedication of the project team,” Brown said.

“This is another important milestone for the project and company, and we are excited to be heading for our first shipment of Butcherbird’s material to our offtake partners.”

The first shipment is planned for June 2021, where it is expected be deliver to one of OM Materials’ two smelter operations in China or Malaysia.

OM Materials is a wholly owned subsidiary of OM Holdings (OMH).

The offtake agreement was finalised in January 2021, which put Element 25 (E25) in a strong position, according to Brown.

“The arrangements with OMH underpin the early-stage project financials and place E25 in an enviable position to accelerate growth into battery grade manganese sulphate and other high purity manganese products,” Brown said in January.

The Butcherbird project has a mineral resource of 263 million tonnes of manganese ore.

Element 25 said supply constraints for nickel and cobalt are forcing battery makers to use manganese in electronic vehicle batteries.

Element 25 has planned to become the world’s first manufacturer of zero-carbon manganese for electric vehicle cathodes.

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