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- Euro Manganese (EMN) and its subsidiary, Mangan Chvaletice, have signed agreements with EIT InnoEnergy to support the Chvaletice Manganese Project
- The aim of the project is to produce high-purity manganese products by reprocessing manganese-rich tailings from a decommissioned mine site in the Czech Republic
- Under the terms of the agreement, EIT will accelerate the project’s integration into Europe’s electric vehicle battery value chain
- EIT will initially invest €250,000 (roughly A$384,000) to help fund ongoing work in the Czech Republic on the Chvaletice definitive feasibility study and the commissioning of a demonstration plant
- EIT InnoEnergy’s equity investment in Euro Manganese will be funded in three tranches over the next twelve months
- Euro Manganese shares are steady at 62 cents
Euro Manganese Inc (EMN) and its subsidiary, Mangan Chvaletice have signed agreements to secure the support of EIT InnoEnergy for its manganese project.
The aim of the project is to produce high-purity manganese products by reprocessing manganese-rich tailings from a decommissioned mine site in the Czech Republic.
EIT InnoEnergy is an innovation community supported by the European Institute of Innovation and Technology and is a leader of the industrial stream of the European Battery Alliance.
Under the terms of a project support agreement and a value-added services agreement EIT will accelerate the Chvaletice Manganese Project’s integration into Europe’s electric vehicle battery value chain.
EIT InnoEnergy’s services will focus on securing offtake agreements with consumers of high-purity manganese products and supporting strategic financing efforts.
“Euro Manganese’s proposed development is the only sizeable manganese resource in the European Union. It represents a unique opportunity for Europe to secure a measure of self-sufficiency in manganese, which is a critical battery raw material. The Chvaletice Manganese Project has the potential to provide up to 50 per cent of projected 2025 European demand for high-purity manganese, and around 28 per cent of anticipated 2030 requirements,” said CEO of EIT InnoEnergy, Diego Pavia.
To expedite the project, EIT will initially invest €250,000 (roughly A$384,000) to help fund ongoing work in the Czech Republic on the Chvaletice definitive feasibility study and the commissioning of a demonstration plant, both of which are set to be completed in late 2021.
EIT InnoEnergy’s equity investment in Euro Manganese will be funded in three tranches over the next twelve months. With each tranche, the company will issue EIT a number of common shares in the company.
The demonstration plant will produce large-scale samples of high-purity manganese for supply chain qualification by prospective customers, such as electric vehicle makers.
EIT InnoEnergy has further agreed to help Euro Manganese secure financing of up to €362 million (around A$556 million) for the commercial development of the Chvaletice Manganese Project. This funding could potentially come from Europe-wide and regional grant programs, European project finance or economic development banks.
The project is also set to deliver a variety of environmental benefits. The company says the 25-year project’s low carbon footprint supports Europe’s greenhouse gas reduction goals.
By reprocessing existing mining waste in Europe, the company anticipates the project will have a much smaller environmental footprint than other existing sources of battery-grade manganese. Industrial waste will be recycled, and a longstanding source of water pollution will be eliminated.
The company says the Chvaletice Manganese Project offers Europe’s only real opportunity to deliver local, primary production of a critical battery raw material for which demand is growing rapidly, driven principally by electric vehicle battery manufacturing.
Euro Manganese shares are steady at 62 cents at 10:15 am AEDT.
