Element 25 is set to be granted approximately $50 million in funding from the Federal Government’s Northern Australia Infrastructure Facility (NAIF) to support the expansion of its Butcherbird expansion manganese project.
This includes $42.5 million in senior debt and a $7.5 million cost overrun facility to support the mine’s production capacity to 1.1 million tonnes per annum (Mtpa) of manganese oxide concentrate.
The project’s updated feasibility study, released in January 2025, detailed capital costs of $64.8 million for the expanded 1.1Mtpa operation.
The feasibility study returned a pre-tax net present value of $561 million and an internal rate of return of 96 per cent, with expected annual cashflow of $70.5 million over an 18-year mine life.
Element 25 is targeting additional project funding through a mix of offtake prepayment, subordinated debt and royalty finance structures.
“Securing this support from the Federal Government’s Northern Australia Infrastructure Facility reaffirms the government’s commitment to developing Australia’s critical minerals sector and Butcherbird’s economic importance to Australia and the Pilbara region of WA,” Element 25 managing director Justin Brown said.
“Our feasibility studies have confirmed Butcherbird’s pedigree as a long-life manganese concentrate production hub from its 274 million tonne resource.
“This support from NAIF is critical to our plans to expand Butcherbird to meet this growing demand as the world continues to shift towards electrification and energy transition.”
If battery chemistry continues to shift towards lithium manganese-rich (LMR) formulations, manganese use could increase by up to tenfold, as indicated by recent announcements from leading car and battery manufacturers such as General Motors, Ford and POSCO FM.
This places increased importance on Butcherbird’s expansion.
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