Battery Grade Manganese Sulphate Pilot Plant Operational

Advanced Manganese developer Firebird Metals Limited (ASX: FRB, “Firebird” or “the Company”) is pleased to announce completion of fit-out of the Chinese-based Research and Development Centre (“R&D Centre”) and commencement of Pilot Plant operations, ahead of schedule and under budget.

HIGHLIGHTS

• Chinese-based Research and Development (R&D) Centre fit-out completed ahead of schedule and under budget
• R&D Centre situated in the Jinshi High Tech Industries Development Zone, Jinshi, Hunan province, China
• Completion of R&D Centre includes commencement of Pilot Plant operations, with samples of high-purity manganese sulphate (MnSO4) and manganese tetra oxide (Mn3O4) to be produced for potential customers and offtake parties
• R&D centre will be used to complete testing on several other potential manganese rich precursor cathode active materials (pCAM)
• Commencement of Pilot Plant operations represents the execution of another key milestone for the China-based LMFP battery strategy
• Establishment of the R&D Centre follows completion of the Battery Grade Manganese Sulphate Scoping Study, which delivered excellent results and reaffirmed the opportunity to establish Firebird as low-cost, near-term manganese sulphate producer, key results include:
  • Low-cost total CAPEX of ~US$82.3M before tax
  • Highly competitive low OPEX of ~ US$659/mt
  • Strong projected NPV of ~US$331M at a discount rate of 8%, before tax
  • Internal rate of return of 47% before tax
  • Payback period of less than two years
  • Plant capacity of 72,000 mt/a of battery grade manganese sulphate (MnSO4) equivalent, producing:
    • 50,000mt/a Battery Grade Manganese Sulphate (MnSO4); and
    • 10,000mt/a Manganese Tetra Oxide (Mn3O4)
• Battery Grade Manganese Sulphate Pre-Feasibility Study (PFS) at an advanced stage and on-track for completion in Q1 2024

Commenting on completion of the R&D Centre and rapid execution of the China-based LMFP battery strategy, Firebird Managing Director Peter Allen said, “We continue to make excellent strides in China on our LMFP Battery Strategy, which will position us to become a major, low-cost, manganese sulphate producer, providing battery-grade manganese into a market that is forecast to experience exponential growth over the coming decade.

“Completion of the R&D Centre, under budget and ahead of schedule, is an excellent achievement and a strong testament to the team on-the-ground in China. We have commenced Pilot Plant work and will focus on demonstrating our ability to produce high-purity manganese sulphate and manganese tetra oxide for potential customers and offtake parties. This work will also play a key role in securing finance to construct our plant in Hunan and continue our focused efforts towards becoming a producer in the next 18-24 months.

“We have attracted and assembled a leading and experienced manganese team in China and I am very confident and excited on what we are working towards and the future for Firebird and our shareholders.

“Importantly, we are well-funded following our heavily oversubscribed Placement from last October and in a very strong position to execute key work programs in China, along with the continued development of our Oakover Project in Western Australia. We are fully focused on maintaining this strong momentum and look forward to delivering on a very busy 2024.”

The R&D Centre is located in the Jinshi High Tech Industries Development Zone, Jinshi, Hunan province, China, which is a central location for Chinese Battery production and manganese sulphate demand in China.

Initially, the Pilot Plant will produce samples of battery grade manganese sulphate (MnSO4) and manganese tetra oxide (Mn3O4) for potential customers and offtake parties. The Plant will also be used to demonstrate the production process to financiers, as Firebird continues to progress its China-based LMFP battery strategy and develop into a near-term producer of battery grade manganese.

The Pilot Plant forms part of Firebird’s Research and Development Centre, which will be used to complete testing on several other potential manganese rich precursor cathode active materials.

Click here for the full ASX Release

This article includes content from Firebird Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.