Element 25 Secures Crucial Approval for Butcherbird Expansion, Boosting Manganese Output
Element 25 has obtained key regulatory approval from WA's DEMIRS for its Butcherbird Expansion Project, paving the way for a twelve-year production run at 1.1 million tonnes per annum of manganese concentrate. The final hurdle remains the Works Approval, expected imminently.
- Mining Proposal and Mine Closure Plan approved by WA's DEMIRS
- Production capacity set to increase to 1.1Mtpa manganese concentrate for 12 years
- Tails storage facility fully approved for first six years with long-term plans
- Works Approval pending to commence construction of expanded processing facility
- Project supports Element 25's battery-grade manganese ambitions with US partnerships
Regulatory Green Light for Butcherbird Expansion
Element 25 Limited (ASX: E25) has achieved a significant milestone with the Western Australian Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) granting formal approval for its Mining Proposal and Mine Closure Plan related to the Butcherbird Expansion Project. This approval underpins the company’s plan to scale up manganese concentrate production to 1.1 million tonnes per annum (Mtpa) over the next twelve years, reinforcing Butcherbird as a cornerstone asset in Element 25’s portfolio.
The approval covers critical operational aspects, including the tails storage facility, which is fully sanctioned to support the first six years of processing with staged lifts and a long-term management strategy thereafter. This comprehensive regulatory endorsement provides Element 25 with a clear pathway to expand its mining operations with confidence.
Final Regulatory Step: Works Approval
While the Mining Proposal and Mine Closure Plan approvals mark a major regulatory achievement, the company still awaits the Works Approval necessary to commence construction of the expanded processing facility. Element 25 submitted this application in October 2024, and the approval is anticipated imminently, with no known obstacles reported. Once granted, this will unlock the next phase of development, enabling the company to transition from planning to execution.
All other essential permits and agreements, including water abstraction, heritage clearances, Native Title, and pastoral agreements, remain in place from the initial Stage 1 operations, smoothing the path forward.
Strategic Importance of Butcherbird and Battery Materials Ambitions
The Butcherbird Project, located in Western Australia’s Pilbara region, is Element 25’s flagship manganese asset. The planned expansion aligns with the company’s broader strategy to supply high-quality manganese oxide concentrate to the steel industry and serve as feedstock for its pioneering battery-grade high purity manganese sulphate monohydrate (HPMSM) facility in Louisiana, USA.
Element 25’s HPMSM Project, developed in partnership with automotive giants General Motors LLC and Stellantis N.V., aims to produce critical raw materials for the burgeoning electric vehicle (EV) battery market. The project has garnered strong support from the US Department of Energy, including negotiations for a substantial US$166 million grant, underscoring its strategic importance in the global battery supply chain.
Looking Ahead: Growth and Market Positioning
With regulatory approvals now largely secured, Element 25 is positioned to advance its Butcherbird Expansion Project swiftly. The increase to 1.1Mtpa manganese concentrate production not only enhances the company’s output but also strengthens its role in supplying materials critical to both traditional steelmaking and emerging energy storage technologies.
Investors and market watchers will be keenly observing the imminent Works Approval decision, which will be pivotal in confirming the timeline for construction commencement and subsequent production ramp-up.
Bottom Line?
Element 25’s regulatory progress sets the stage for a transformative growth phase, with the final Works Approval the key to unlocking full-scale production.
Questions in the middle?
- When exactly will the Works Approval be granted, and could any delays arise?
- How will global manganese market dynamics impact Element 25’s expanded output?
- What are the potential risks or challenges in scaling up the HPMSM battery materials facility in the US?
