Ferro-alloys.com：Euromanganese is moving towards the goal of developing the Chvaletice manganese ore project in the Czech Republic. The final environmental impact assessment (EIA) is expected to be completed by the end of this year and is expected to obtain the final permit for the project in 2022.

This project intends to reprocess the tailings to produce ultra-high purity electrolytic metal manganese (HPEMM) and ultra-high purity sulfuric acid monohydrate (HPMSM) with specifications above 99.9%, which are key components of lithium-ion batteries.

Chvaletice expects to also carry out environmental remediation of a contaminated former mine to bring it into full compliance with modern Czech and European Union environmental standards and regulations.

Meet the needs of Europe

There are few manganese sources suitable for the sustainable and economic production of high-purity manganese products, and the demand for high-purity manganese products is growing rapidly.

This is largely driven by the lithium-ion and electric vehicle (EV) markets, especially in Europe, where 100% of high-purity manganese products are imported.

The company closely cooperates with major global customers in product development and supply chain qualifications. Based on the test results of the pilot plant, the company is confident to produce ultra-high purity manganese products that meet the needs.

Guaranteed processing plant land

The company has obtained the land required for the processing plant site (which has been planned for industrial use) and has begun to re-plan the tailings pond.

After intensive community consultation, the two neighboring cities unanimously voted to modify the land use plan.

The company has been engaged in community consultation for many years and has received positive feedback and valuable opinions from local residents.

governmental support

In addition, the company has experienced continuous cooperation and support from the Czech government at all levels for the project.

The government issued an important preliminary mining license in 2018, followed by two exploration licenses and extended their validity period to 2023.

It also approved the company’s application for certain investment incentives in the form of investment tax credits for eligible project expenditures, and issued a ruling in March 2020 in accordance with the EU’s Natural Law 2000 to determine the project’s expected Will not adversely affect the habitats of endangered and protected species.

Environmental Impact Assessment

The environmental impact assessment (EIA) regulatory review process is in progress, and the review results of multiple government departments and agencies and local municipalities have been communicated to the company in January 2021.

Based on these results, the company can now enter the next stage of the licensing process.

Public and regulatory feedback from the screening process will be incorporated into the final EIA. The goal of the final EIA is to be completed by the end of 2021, and the final approval of the project may be achieved in 2022.

Funding feasibility studies

The company recently raised a net income of 10.6 million Canadian dollars, enabling it to continue its feasibility study, order a demonstration plant, and advance the environmental assessment and approval process.

However, the company anticipates that it will need to raise additional funds because the current capital resources are insufficient to fully complete the feasibility study and the installation, commissioning and operation of the demonstration plant.

The external cost of the feasibility study and the operation of the demonstration plant for a year is estimated at 11.2 million Canadian dollars, and the internal cost of completing these phases of the project is estimated at 6 million Canadian dollars, bringing the total cost to 17.2 million Canadian dollars.

With additional financing, it is currently expected that the completion and commissioning of the demonstration plant and the completion of the feasibility study will be completed by the end of 2021.

Optimization opportunities

With the advancement of the feasibility and project development stage, the company intends to evaluate the potential value enhancement opportunities of the project in order to reduce costs and technical risks.

The company is also evaluating the possibility of producing high-purity manganese carbonate.

Cooperate with one or more potential consumers of high purity manganese products.

The company will evaluate the feasibility of building one or more satellite metal manganese dissolution plants at the customer’s nickel-manganese-cobalt (NMC) precursor plant. The plant can provide some customers with manganese sulfate solution instead of granular manganese sulfate monohydrate. Eliminates energy-intensive crystallization steps.

Get a strategic partner

After receiving the intent of all parties to the project development partner in 2020, the company initiated a process to ensure that the strategic partner assists the further development of the project.

The company is also continuing to discuss technical cooperation with many parties (including battery, chemical and automobile manufacturers), hoping to reach an additional memorandum of understanding on obtaining high-purity manganese products from the project.

Project financing prospects

Once the licensing and offtake agreements are signed, and the feasibility study and demonstration with bank guarantees are completed, the company is expected to turn its attention to project financing.

The company believes that compared with most mining projects, its project financing capabilities may have advantages-considering its secure jurisdiction, the quality of potential off-take agreements, environmental benefits, and its strategy in the European battery supply chain status.

The debt capacity of the project will be affected by the following factors:

The profitability of the offtake agreement and any available price drop protection;

Export Development Agency and the European Union Debt Credit Guarantee Government;

The client sponsors in the form of advances, advance purchase agreements and/or equity or debt contributions; and the cost overrun protection provided by the counterparty of the Engineering Procurement and Construction (EPC).

• [Editor:zhaozihao]