Element 25 Limited (ASX:E25) Receives Final Approval for Butcherbird Expansion
Regulatory Approval
Element 25 Limited (ASX:E25) has received formal Works Approval from the WA Department of Water and Environmental Regulation (DWER) for its Butcherbird Expansion Project. This approval fully endorses the project under the Western Australian regulatory framework, allowing the construction of a 1.1Mtpa manganese concentrate production facility.
Project Overview
The Butcherbird Project, located in Western Australia’s Pilbara region, will expand manganese concentrate production to 1.1Mtpa. The manganese produced will serve as the primary feedstock for Element 25’s planned battery grade, high purity manganese sulphate monohydrate (HPMSM) processing facility in Louisiana, USA. Additionally, the company will supply manganese concentrate to the manganese alloy and steel industries.
Financial Outlook
An updated Feasibility Study released in January 2025 estimates the project’s capital cost at A$64.8M, with a pre-tax Net Present Value (NPV) of $561M and a 96% pre-tax Internal Rate of Return (IRR). The project is expected to generate an average annual cash flow of $70.5M over its 18-year mine life.
Future Plans
Following the receipt of Works Approval, Element 25 will commence construction of the Butcherbird Expansion Project processing facility. The company is also finalising funding for the expansion and advancing plans for the HPMSM Project in partnership with General Motors LLC and Stellantis N.V., supported by US$166M in Department of Energy grant funding.
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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