Element 25 Limited (ASX:E25) Butcherbird Expansion Approved
Expansion Approval Granted
Element 25 Limited (ASX:E25) has received approval for its Mining Proposal and Mine Closure Plan for the Butcherbird Project. This key milestone from Western Australia’s Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) secures 12 years of manganese concentrate production at a rate of 1.1 million tonnes per annum (Mtpa).
Processing Facility Plans
The approved tails storage facility will support operations for the first six years of processing, with a long-term strategy in place thereafter. A Works Approval is the only pending prerequisite, which is anticipated to be granted soon, allowing for expanded processing facility construction.
Future Development Goals
The Butcherbird Project is the company’s flagship manganese asset, situated in the Pilbara region. The expansion aims to produce high-quality manganese oxide concentrate to serve customers in the downstream steel sector. Moreover, Element 25 plans to establish a battery-grade high purity manganese sulphate monohydrate (HPMSM) processing facility in partnership with General Motors LLC and Stellantis N.V.
Management Statements
Justin Brown, Managing Director of Element 25, stated, “This approval is a major step towards elevating our production capabilities and supporting the evolving energy market.” The HPMSM project has garnered strong backing from the U.S. Government’s Department of Energy, with negotiations underway for a $166 million grant.
Company Overview
Element 25 is vertically integrated, committed to emerging as a leader in low-carbon battery materials. The company’s strategic plans include expanding its capacity at Butcherbird while fulfilling the growing demand for manganese in electric vehicle battery manufacturing.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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