The owners of the Chvaletice Manganese Project announced a positive feasibility result for the production of HP MSM and HP EMM from historical mine tailings.

Euro Manganese has reported positive results for its Chvaletice manganese project (CMP) in the Czech Republic.  The project envisages the processing of tailings over a 25-year life of project to produce 46.8ktpy of Mn contained in high-purity electrolytic manganese metal (EMM) and manganese sulphate monohydrate (MSM 32.24% Mn).  Initial CAPEX is put at US$757M.  The next steps for the project include various permitting requirements in the Czech Republic, executing binding offtake and developing an optimum financing structure for the project.

While our outlook for Mn demand in batteries is not as high as set out in the CMP PFS, Project Blue forecasts double-digit demand growth for manganese sulphate in its base case.  While existing and planned capacity should be sufficient to meet demand over the medium term, the vast majority of capacity is in China.  With downstream lithium-ion players and automotive OEMs looking to build more sustainable, local supply chains, there are considerable opportunities for ex-China producers with strong economics and ESG credentials to enter the market.