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Highlights
- AU$50 million funding secured from NAIF
- Butcherbird Project set to scale to 1.1 Mtpa production
- Regulatory approvals and US grant accelerate HPMSM vision
Element 25 (ASX:E25), a developer in the manganese sector, has reached a significant milestone in expanding its Butcherbird Manganese Project. The company has secured a senior debt finance facility of up to AU$50 million from the Northern Australia Infrastructure Facility (NAIF). This financial support includes AU$42.5 million in senior debt and an additional AU$7.5 million buffer for potential cost overruns.
The funding will fuel the company’s plans to enhance the Butcherbird Project’s production capacity in Western Australia's Pilbara region, aiming to increase output to 1.1 million tonnes per annum of manganese ore. This development is a core component of Element 25’s broader strategy to supply feedstock to its planned high purity manganese sulphate monohydrate (HPMSM) facility in Louisiana, USA. Notably, this upcoming facility has received a significant boost through US$166 million in grant funding from the U.S. Department of Energy.
Element 25 is strategically aligning itself with the global clean energy transition by focusing on manganese products that support battery technologies. The company’s expanded production not only supports the HPMSM plant but also allows surplus manganese concentrate to be directed towards industries including manganese alloy and steel manufacturing.
To fully finance the Butcherbird expansion, Element 25 is exploring a variety of funding mechanisms. Discussions are underway regarding potential offtake prepayment arrangements, subordinated debt, and royalty-based financing, ensuring diversified and robust capital sourcing.
From a regulatory standpoint, the project has received all key environmental and operational approvals under Western Australia’s regulatory framework. This includes permissions from the Department of Water and Environmental Regulation, and the Department of Energy, Mines, Industry Regulation and Safety. Additional operational prerequisites such as water abstraction rights and heritage clearances are already in place, inherited from the successful Stage 1 pilot operations.
Element 25, a part of the ASX300, is increasingly positioned as a strategic contributor to the clean energy supply chain. The backing from NAIF signals a strong federal commitment to critical mineral projects and affirms Butcherbird’s significance to both the regional economy and Australia's global mineral leadership.
As the company moves closer to full-scale production and supply integration, the Butcherbird project marks a crucial step in supporting the global demand for high-quality manganese in battery and steel applications.
