Giyani releases feasibility results for battery-grade manganese project

Giyani releases feasibility results for battery-grade manganese project

Earlier this week, Giyani Metals released the results of a feasibility study for its K.Hill battery-grade manganese project in Botswana.

Blue View

The project envisages an integrated (open pit) mining and processing operation for the onsite production of high-purity manganese sulphate monohydrate (HPMSM) directly from manganese oxide ore mined at K.Hill.  

CAPEX is put at US$281M, including a contingency of US$32M, for a fully integrated battery raw materials project which would produce 73ktpy of HPMSM. 

Giyani points towards robust economic returns in its highlights summary, specifically a post-tax NPV, at an 8% discount rate, of US$481M and a post-tax IRR of 28%.  Project Blue however notes that the HPMSM price estimates used in the study (which are in the range of US$3,000-4,000/t) are markedly higher than today’s prices (which were less than US$1,000/t in October). 

Manganese is a key ingredient in several lithium-ion battery cathode formulations and thus a vital ingredient in key technologies that will meet the safety, durability, and performance requirements of the EV industry.  Over the past two years, interest in manganese as a cathode technology has intensified, with CATRL, Tesla and Volkswagen all confirming that high-manganese, high-nickel cathodes are central to their future plans.  While sizable volumes of battery-grade manganese are already consumed in LMO, NCM, and NCMA cathodes, more novel chemistries such as LMFP, LNMO, NMx and other nickel-rich technologies present considerable upside.

Project Blue forecasts double-digit demand growth for manganese sulphate in its base case.  While existing and planned capacity should be sufficient to meet demand over the medium term, the vast majority of global capacity is in China.  With downstream lithium-ion players and automotive OEMs looking to build more sustainable, local supply chains, there are considerable opportunities for ex-China projects like Giyani to supply the market, subject to robust economics and strong ESG credentials.

  • 16 Nov 2022
  • Manganese
  • Automotive
  • Batteries
  • Energy Storage
  • Steel & Alloys

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