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Element 25 Signs Offtake Deal for Butcherbird Manganese Expansion
Element 25 signed a binding offtake deal with OM Holdings, clearing a financing hurdle for its Butcherbird mine expansion and battery-grade manganese sulphate plans.
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Element 25 struck a binding long-term offtake agreement with OM Holdings, clearing a hurdle for the expansion of its Butcherbird manganese mine in Western Australia.
OM Holdings is a long-established manganese alloy producer with smelting facilities in Malaysia and a distribution network across Asia. The concentrate from Butcherbird will feed those smelters. Managing Director Justin Brown said the agreement secures a high-quality offtake partner with established smelting capability. Brown said the offtake partner's smelting capability provides a commercial foundation for the Butcherbird project over the initial five years of operation and potentially beyond.
Element 25 is expanding Butcherbird to 1.1 million tonnes a year of manganese concentrate. The expansion is based on a January 2025 feasibility study and an ore reserve of 101.4 million tonnes at 10.4% manganese, containing 10.54 million tonnes of manganese metal. The study supports an 18-year mine life at the planned throughput rate. Mechanical completion and commissioning are forecast for the first quarter of 2027.
The deal secures a buyer for the mine's output. Manganese prices are under pressure from weak steel demand in China. Battery-grade material commands a significant premium. Element 25's longer-term plan is to process Butcherbird concentrate into high purity manganese sulphate for the lithium-ion battery supply chain.