Euro Manganese Inc., listed on the TSX-V and ASX, has unveiled an encouraging Preliminary Economic Assessment (PEA) for its Chvaletice Manganese Project located in the Czech Republic. The assessment reveals a pre-tax net present value (NPV) of $740 million and a post-tax NPV of $492 million, supported by a robust pre-tax internal rate of return of 16% and a notable operating margin of 48%. This announcement aligns with growing institutional and governmental focus on high-purity manganese, an essential component for electric vehicle batteries, which is anticipated to face a significant supply shortage by 2027.
Currently, China dominates the high-purity manganese refining market, overseeing about 95% of global production. This dominance places Western battery manufacturers in a vulnerable position. The Chvaletice project by Euro Manganese stands out as the sole integrated high-purity manganese initiative under development in Europe, strategically positioned to meet the increasing demand for energy transition and supply chain resilience.
The project boasts several key achievements: a 48% operating margin calculated at a conservative price of $2,888 per tonne for high-purity manganese sulphate monohydrate (HPMSM), highlighting its viability even amidst fluctuating commodity prices. Additionally, technological advancements have been demonstrated, with recovery rates reaching 60% for HPMSM and 61% for high-purity electrolytic manganese metal (HPEMM), reflecting the project’s technical maturity and successful optimization efforts.
The Chvaletice Manganese Project is projected to have a 26-year asset life, with an annual nominal production capacity of 150,000 tonnes per annum of HPMSM. This capacity includes full flexibility to convert between HPEMM and HPMSM, allowing for adaptability to changing customer needs. Euro Manganese aims to reprocess historic mine tailings to produce both HPEMM and HPMSM, establishing a traceable and low-carbon supply chain within the European Union.
As Europe’s first domestic producer of high-purity manganese, Euro Manganese is set to fulfill the rising demand for sustainable battery materials. This development is aligned with Europe’s goals for clean energy and supply-chain independence, making the Chvaletice project pivotal in advancing these strategic objectives. For further inquiries, Jane Morgan handles investor and media relations at +61 450 646 609.