Firebird Metals, Eramet agree on manganese offtake

Firebird Metals (ASX: FRB) said Monday it has signed a memorandum of understanding (MOU) with French mining company Eramet for the supply of ore to feed its proposed battery-grade manganese plant in China.

The MOU, says Firebird, marks another “significant milestone” on its journey to becoming a near-term, low-cost producer of battery-grade manganese sulphate (MnSO4) and manganese tetra oxide (Mn3O4) to supply electric vehicles.

Under the MOU, Eramet — the world’s leading producer of manganese — will provide ore from its Moanda mines in Gabon for the first stage of Firebird’s manganese sulphate operations. The agreement follows the testing of a 200-kg sample of Eramet ore that successfully produced MnSO4 and Mn3O4.

Firebird said the parties also will work to convert the MOU into a long-term supply agreement next year, following completion of financing and during construction of the manganese sulphate plant.

Shares in Firebird Metals closed 1% weaker on Monday in Sydney at 9.7¢ apiece, valuing the company at $13.7 million (C$12.3 million.)

Permits 

Last September, Firebird received its permits to operate the manganese sulphate plant in Jinshi, Hunan province, with first production targeted for later this year. Stage one of operations is designed to process manganese ore sourced from third parties, and will aim to produce 50,000 tonnes of battery-grade MnSO4 and 10,000 tonnes of Mn3O4 (or the equivalent of 72,500 tonnes of MnSO4) annually.

According to a feasibility study released in May, the project has a capital cost estimate of $83.5 million (C$122.1 million) and forecast operating expenses of roughly $609 per tonne for the production of battery-grade manganese sulphate.

The manganese sulphate plant is part of Firebird’s growth strategy centred around the growing popularity of LMFP (lithium manganese iron phosphate) batteries in China, the largest EV market globally. MnSO4 is a key cathode material in LMFP batteries.

Pilot plant

The Australian miner envisions its pilot plant is poised to be at the forefront of rapid development and growth in batteries for electric vehicles, being strategically located at the epicentre of the Chinese EV market.

“Securing this reliable and strategic supply of manganese ore marks a pivotal step in accelerating our journey to production and building a strong foundation for sustainable cash flow generation,” Firebird managing director Peter Allen commented in a news release.

“This agreement with Eramet reflects our commitment to establishing a vertically integrated operation, and positions us to deliver on our long-term strategy of supporting the clean energy transition by becoming a key supplier of manganese for LMFP batteries.”