Euro Manganese Inc. [EMN-TSXV-ASX, EUMNF-OTCQX, E06-Frankfurt] said it has submitted a final environmental and social impact assessment (ESIA) report for its flagship Chvaletice Manganese Project in the Czech Republic.
Euro Manganese is a battery metals company with a focus on becoming a leading producer of high-purity manganese for the electric vehicle industry and other high-technology applications. It aims to achieve that goal by developing the Chvaletice Manganese Project. The project is described as a “waste-to-value recycling and remediation opportunity” involving the reprocessing of old tailings from a decommissioned mine.
Euro Manganese said the Chvaletice project is the only sizable resource of manganese in the Europe. It said the asset puts the company in a position to provide battery supply chains with critical raw materials to support the global shift to a circular, low-carbon economy.
In a recent update, the company said it remains focused on commissioning a demonstration plant at the project, producing on-spec samples, and delivering those samples to prospective customers in the New Year. “The Chvaletice project gained real momentum in 2022,’’ said Euro Manganese President and CEO Dr. Matthew James. During the fourth quarter, the company filed a technical report related to a NI 43-101 feasibility study which outlines robust base case project economics. Initial capital is estimated at US$757.3 million, including total contingencies of US$106.5 million.
Forecast life of project net revenues are US$13.3 billion with EBITDA (earnings before interest, tax, depreciation and amortization) of US$8.1 billion.
Commissioning of the demonstration plant is expected to be completed in the first quarter of 2023. Thereafter, deliveries of bulk samples to customers will commence, the company has said.
Euro Manganese said the ESIA builds on the preliminary ESIA, which was reviewed by the Czech Ministry of Environment in 2020. After a significant amount of work, the company is confident in the quality of the studies and in meeting the criteria set out by Czech regulation for a successful ESIA. The approval process is expected to take approximately six months.
The company has also published its inaugural sustainability report for 2022. It said the report outlines how Euro Manganese is leading the way for sustainable production of high-quality manganese for the electric vehicle industry. “Environmental protection and stewardship remain front and centre in our company and the design of this project,’’ said James in a press release.
On January 4, 2023, Euro Manganese shares closed at 30 cents. The shares are currently trading in a 52-week range of 52 cents and 19 cents.