Euro Manganese has updated the market on its proposed Chvaletice Manganese Project in the Czech Republic following the successful close of the second tranche of its oversubscribed private placement of A$30m completed earlier this month.
The project is designed to produce high-purity manganese products by reprocessing manganese-rich tailings from a decommissioned mine, located 90 km east of Prague in the Czech Republic. The permitting process for the project continues to build on five years of meaningful and constructive engagement with governments, regulatory agencies and local communities.
Euro Manganese says it has benefitted from ongoing collaboration and support for the project at various levels of the Czech government, who approved its application for investment tax credits on eligible project expenditures, and, in March 2020, issued a ruling under the European Union’s Natura 2000, which determined that the Chvaletice Manganese Project is not expected to adversely impact endangered and protected species habitat.
“The Project has received all necessary regulatory, permitting and tenure approvals to date in an expeditious way,” says Jan Votava, Managing Director of EMN’s Czech operation. “We appreciate the support and professionalism of the Czech Government and regulatory authorities, and the collaborative and respectful attitude of local communities.”
Local groundwater has long been contaminated by the existing Chvaletice tailings deposits, which leach metals and salts into the underlying aquifer. Regulatory bodies that participated in the initial screening procedure have viewed the project positively because it is designed to eliminate the longstanding source of water pollution and restore the site back to a more natural state.
Progress update on Demonstration Plant at Chvaletice
Detailed design of the Chvaletice Manganese Project’s Demonstration Plant (DP) by the Changsha Research Institute for Mining and Metallurgy is progressing well, with 97% of equipment ordered and fabrication about to begin. The DP consists of six interconnected modules that will replicate the entire HPM production process to be used in the commercial operation of the Project.
At the Chvaletice Project site, planning work is underway for a revamp of two industrial buildings that were part of the original Chvaletice mining operation four decades ago. The buildings will be upgraded to house the DP modules. The permitting process for the building renovation and construction work is underway and targeted for completion in June/July 2021.
Feasibility study on schedule and on budget
Euro Manganese says it is continuing to make solid progress on the definitive feasibility study, which is targeted for completion in the first quarter of 2022. To date, the study is tracking on schedule and on budget, with approximately 50% of physical progress complete as at the end of April 2021. The study is expected to provide the design, cost and scheduling details needed to arrive at a final investment decision and secure full financing for the Project.
Testing is underway to help optimise the design of processes including materials handling, solid/liquid separation, leaching, purification and crystallization.
Recent work on the site included a geotechnical drilling program of 20 bore holes in both the mine site and process plant areas to quantify ground conditions required for the design of building foundations. Additionally, a groundwater pumping test is planned to determine the availability of contaminated ground water as a potential source of process make up water for the plant.
Final investment decision
The final investment decision for the Chvaletice Manganese Project will also depend on securing offtake agreements with customers who want to purchase its high purity manganese products. As the only sizeable manganese resource in the European Union, the project is in a strong strategic position.
Customer interest is increasing, and discussions continue with several potential offtakers of Chvaletice’s HPM products.
“For many prospective customers, the Chvaletice Manganese Project ticks all the boxes,” says Euro Manganese CEO, Marco Romero. “As a recycling project, we have the potential to be one of the world’s greenest sources of high purity manganese, which will help auto makers and battery manufacturers meet the EU’s increasingly stringent environmental standards. We expect to help the EU meet its decarbonisation goals, while cleaning up a longstanding source of water pollution and creating long-term local employment. There’s no other HPM production opportunity like this in the world.”
The goal of Euro Manganese is to arrive at a final investment decision (FID) in 2022. If all goes according to plan, the FID would be followed by the arrangement of project financing and start of construction, with plant start-up, commissioning and commercial production projected for late 2024 or early 2025.
The Project continues to be subject to COVID-19 pandemic-related risks, including travel restrictions, that could impact the Company’s ability to meet its upcoming targets, the company noted in a statement this weekend.
