en.Wedoany.com Reported - Multiple mining companies in Australia are accelerating the development of manganese projects to meet the growing global supply chain demand for manganese, a critical metal.
Industry views suggest that manganese, as a fundamental raw material for steel and battery production, has a strategic value that is not yet fully recognized. Element 25 Managing Director Justin Brown pointed out that all steel smelting requires the addition of manganese, and battery production is also highly dependent on this metallic component. He stated that the steel industry consumes the majority of current manganese output, while application in the battery sector is growing rapidly. Black Canyon Managing Director Brendan Cummins added that approximately 10 kilograms of manganese is contained in every tonne of steel, while the battery industry is shifting towards manganese-rich cathode chemistries. Manganese is priced per dry metric tonne unit (dmtu), currently trading around US$5 per dmtu, equivalent to US$221 per tonne, making its value roughly double that of iron ore. However, the long-term historical average price is about US$5.50 per dmtu, meaning the current price is below the long-term average.
Although manganese resources are relatively abundant, global supply is highly concentrated. South Africa accounts for about 40% of global production, with Gabon, Ghana, China, India, and Australia making up most of the remainder. Brown believes Australia has advantages over many other supplying countries in terms of geopolitical stability and environmental regulation, especially considering manganese's applications in areas such as defense. However, between 2018 and 2023, Australia's share of global manganese supply fell from 8%-9% to 7% in recent years. Brown noted that some of Australia's major mines are aging; for example, Bootu Creek has closed, and Groote Eylandt and Woodie Woodie are nearing the end of their lives.
Element 25 (ASX:E25) is seeking to fill the supply gap through its Butcherbird project located in the Pilbara region of Western Australia. The project has a resource exceeding 270 million tonnes, supporting an 18-year mine life at a production rate of 1.1 million tonnes per year. This A$64.8 million total investment project is fully funded, scheduled for first production in the March 2027 quarter, with a pre-tax net present value of A$561 million, an internal rate of return of 96%, and a payback period of just 15 months. The company plans to build its first refinery in Louisiana, having received US$166 million in grant support from the U.S. government, and has established financial and offtake partnerships with General Motors and Stellantis. Brown stated the company's ultimate goal is to dominate the global market in high-purity manganese sulphate.
Black Canyon (ASX:BCA) has discovered seven manganese deposits since listing on the ASX in May 2021. The company holds a resource of 315 million tonnes at a grade of 10.5% manganese, containing 33.1 million tonnes of manganese, making it the largest manganese resource in Western Australia and the second largest in Australia. The discovery at its Wandanya project is considered one of the best manganese finds in Western Australia in years, with the deposit consistently producing grades exceeding 40% manganese and up to 60% iron. The company is currently advancing pre-development activities to move the Wandanya project towards production, targeting completion of a resource estimate early in the December quarter, followed by a scoping study.
Trek Metals (ASX:TKM), while assessing the rare earth potential of its Christmas Creek gold project in the Kimberley region of Western Australia, accidentally discovered high-grade manganese at the Kuro prospect. Sampling results showed manganese grades up to 60.1%, approaching the theoretical maximum content of about 63% found in pure manganese oxide. Chief Executive Officer Derek Marshall stated that the homogeneity of the material in the deposit is impressive, with almost all the black rock interior being pure manganese oxide. Trek is planning to commence its maiden drilling campaign at the end of this month and is obtaining quotes for diamond drill rigs for metallurgical sample collection.
Firebird Metals (ASX:FRB) owns the Oakover manganese project in the Pilbara, with a resource of 176.65 million tonnes at a grade of 9.9% manganese. The project has secured a mining lease, and a 2023 scoping study confirmed an 18-year mine life with annual production of 4 million tonnes. Capital costs are estimated at A$123 million, with a net present value of A$741.3 million, an internal rate of return of 73.1%, and a payback period of 16 months. The company has recently shifted its focus towards technology and downstream sectors, possessing patented proprietary technology that can directly process manganese concentrate into cathode active material (CAM). The process has been successfully tested in China, and the company is building a demonstration plant in a Perth suburb, expected to be operational in the second half of this year. This facility will be the only fully integrated manganese-to-CAM facility outside of China.
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