Element 25 Limited is making significant strides in expanding its Butcherbird Manganese Mine, securing $60 million in funding and advancing critical engineering and contract milestones to boost manganese concentrate production to 1.1 million tonnes per annum.
- AU$50 million senior debt facility secured from Northern Australia Infrastructure Facility
- AU$10 million equity placement completed to accelerate project activities
- Lead engineering by Altris Engineering underway with integrated project team approach
- Mining services contract tender nearing final selection
- Project fully approved under Western Australian regulatory framework
Funding and Financial Backing
Element 25 Limited (ASX, E25) has taken a decisive step forward in its Butcherbird Expansion Project (BBX) with the recent completion of a AU$10 million equity placement and the securing of a AU$50 million senior debt facility from the Northern Australia Infrastructure Facility (NAIF). This combined AU$60 million capital injection is earmarked to fund detailed engineering, procurement of critical equipment, and advance the project towards construction.
The senior debt facility includes a AU$7.5 million cost overrun provision, reflecting prudent financial planning amid ongoing project development. The company is actively negotiating additional funding arrangements to fully finance the expansion, underscoring the project's scale and strategic importance.
Engineering and Contracting Progress
Altris Engineering, appointed as lead engineering consultant in October 2025, has commenced detailed design work. Element 25 has embedded its engineering personnel within Altris’ team, adopting an Integrated Project Team (IPT) methodology to enhance collaboration and streamline information flow. Early process improvement studies are already identifying cost-saving and execution flexibility opportunities.
On the commercial front, the tender process for mining services is well advanced, with several contractors shortlisted and evaluations underway. A preferred contractor selection is anticipated shortly, which will be a critical milestone for project execution.
Procurement and Equipment
Procurement efforts have secured key long-lead equipment, including mineral sizers from MMD and a logwasher unit from KISA Gmbh. These components are vital for the expanded processing plant, designed to handle increased throughput efficiently. The logwasher, a specialized scrubbing unit, is already manufactured and awaiting transport to the site, aligning with the project schedule.
Regulatory and Operational Readiness
The BBX project enjoys full regulatory approval under Western Australian frameworks, including environmental and mining permits. The company has maintained compliance since the initial stage plant commenced operations in 2021. Updated mining proposals and closure plans have been approved, and the tailings storage facility is designed to support the expanded operation for at least six years, with staged lifts planned for the project's lifespan.
Element 25 is also refining its logistics arrangements to accommodate increased production volumes, negotiating with existing partners to optimise haulage efficiency and reduce costs. The company plans to continue exporting manganese concentrate through the Utah Point common user facilities.
Strategic Outlook
The expansion aims to increase manganese concentrate production to 1.1 million tonnes per annum, supported by a robust Ore Reserve of over 101 million tonnes at 10.4% manganese content. This scale underpins a projected mine life exceeding 18 years at the planned production rate.
Importantly, the increased manganese output will feed Element 25’s planned high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana, USA, targeting the rapidly growing electric vehicle battery market. This integration positions Element 25 as a key player in both traditional steel and emerging battery materials sectors.
Bottom Line?
With funding secured and key contracts advancing, Element 25 is poised to transform Butcherbird into a long-life, high-capacity manganese supplier supporting global battery markets.
Questions in the middle?
- Which mining services contractor will Element 25 select to support expanded operations?
- How will final offtake agreements shape the company’s revenue and market positioning?
- What is the timeline for financial close and commencement of construction on the BBX project?