Euro Manganese awards Chvaletice EPCM contract, Czech Republic
Euro Manganese Inc. [EMO-TSXV, ASX; EUMNF-OTCQX; E06-FSE] has awarded the engineering, procurement and construction management (EPCM) contract for its Chvaletice manganese project in the Czech Republic to Wood Australia Pty. Ltd.
The company has selected Wood as its EPCM partner following a rigorous selection process. Five high-quality bids were submitted by international EPCM firms in late 2022. Two firms were shortlisted in early 2023 based on cost of service as well as their proposed project schedule, technical and engineering capability, EU (European Union) experience, team skillset, and overall execution strategy. The company selected Wood as the preferred contractor in April 2023, and has now concluded the contract negotiations and received board approval to award the contract to Wood.
The contract is cost reimbursable and is structured in two phases (outlined below), with an approval stage gate between each phase, as well as after the gap analysis in phase 1. Completion of phase 1 is anticipated to take approximately 12 months, with a final investment decision (FID) to be made prior to commencement of phase 2. Receipt of FID from the board requires securing outstanding permits and project finance (debt and equity).
Dr. Matthew James, President & CEO, commented: “Awarding the EPCM contract to Wood is another key milestone for the company. It is the result of an extensive and robust selection process, and I am very pleased to be partnering with such a high calibre, tier-one engineering firm. We look forward to building a world-class facility to produce high-purity manganese, an essential component in lithium-ion batteries for EV vehicles. Together, we are working to advance the global energy transition.
“We fully respect the robustness of the ESIA process and are committed to minimising project impacts to the surrounding communities. I am confident that we will move forward to a successful conclusion given the positive statements received from the other stakeholders.”
Euro Manganese is a battery materials company focused on becoming a leading, competitive, and environmentally superior producer of high-purity manganese for the electric vehicle industry and other high-technology applications.
The company is advancing development of the Chvaletice Manganese Project in the Czech Republic, which is a unique waste-to-value recycling and remediation opportunity involving reprocessing old tailings from a decommissioned mine. The Chvaletice Project is the only sizable resource of manganese in Europe, strategically positioning the company to provide battery supply chains with critical raw materials to support the global shift to a circular, low-carbon economy.