Dual-listed Euro Manganese has announced the results of the preliminary economic assessment (PEA) of its Chvaletice manganese project, in Czech Republic, which shows the tailings project can operate for a quarter of a century, producing 1.19-million tonnes of high-purity electrolytic manganese metal (HPEMM).
Two-thirds of the HPEMM is expected to be converted into high-purity manganese sulphate monohydrate power (HPMSM).
Euro Manganese said on Wednesday that it would produce 404 100 t of HPEMM and 2.35-million tonnes of HPMSM for Europe’s rapidly emerging electric vehicle battery industry.
“The advent of electric vehicle manufacturing is transforming the entire global automobile industry. Revolutionary changes are taking place before our eyes and these have created unprecedented opportunities for an entirely new battery raw materials supply chain,” said the company’s chairperson, Roman Shklanka.
The PEA is based on the recycling of a 27-million tonnes measured and indicated tailings resource, with a combined grade averaging 7.33% manganese, without the requirement of any hard rock mining, crushing or milling.
The PEA calculated a pretax net present value of $782-million, using a 10% real discount rate. Its preproduction capital is estimated at $404-million and it has an ungeared pretax internal rate of return of 25.2%.
“What makes this project even more significant for an automotive industry focused on making our world greener, and for other consumers striving to secure sustainably produced raw materials, is that these products would be produced by recycling waste,” said president and CEO Marco Romero.
He added that Euro Manganese would focus on advancing the project through front-end engineering and optimisation work, and on the efficient progression of project permitting.
“Planning, process engineering design and metallurgical test work are ongoing, ahead of the upcoming feasibility study, which we target completing by late 2019. Our plan for this year includes building and operating a demonstration plant capable of producing multi-tonne, high-purity manganese product samples for customer testing and qualification. Our 2019 plans also include intensifying community, stakeholder and regulatory consultation, and the filing of project permit application.”