Funding Uncertainty Clouds Black Canyon’s Manganese Expansion Plans

Emerging Manganese Developer in the Pilbara

Black Canyon Limited (ASX, BCA) has presented a comprehensive corporate update at the recent RIU Conference, highlighting its rapid progress as an emerging developer of high-grade manganese and iron resources in Western Australia’s Pilbara region. Since its IPO in May 2021, the company has made six manganese discoveries, including the substantial Balfour Manganese Field (BMF) and the greenfields Wandanya Project.

The BMF stands out as the largest contained manganese deposit in Western Australia, boasting a global mineral resource estimate of 315 million tonnes at 10.5% manganese content, with 87% classified as measured and indicated resources. This scale positions Black Canyon as a significant player in the manganese sector, a commodity critical for steel production and the clean energy transition.

Positive Scoping Studies Signal Economic Potential

Black Canyon has completed positive scoping studies on key deposits within the BMF, including KR1, KR2, and Flanagan Bore. These studies indicate a long mine life of 16 to 20 years, low capital expenditure requirements, and short payback periods under two years. The KR1 and KR2 projects alone forecast a total life-of-mine revenue of approximately A$2.78 billion and an EBITDA of A$654 million, underscoring the potential for strong financial returns.

The company’s mining approach is conventional, utilising truck and shovel methods with simple processing techniques such as crushing, washing, screening, and dense media separation. This straightforward methodology supports cost efficiency and scalability.

Wandanya Project, High-Grade Discovery with Expansion Upside

The Wandanya Project, a greenfields discovery, has revealed high-grade manganese and iron mineralisation along a 3km strike, with exploration ongoing to extend this footprint. Drill results have confirmed manganese grades comparable to the nearby Woodie Woodie Mine, one of Australia’s few high-grade producers. Metallurgical testwork has demonstrated the ability to produce a 44% manganese concentrate with low impurities and high recovery rates, enhancing the project’s commercial appeal.

Further drilling phases are planned for 2026 to expand the resource base, alongside feasibility studies addressing transport, logistics, processing, and environmental permitting. These steps aim to de-risk the project and advance it towards development readiness.

Funding and Market Position

Black Canyon is well-positioned financially, holding approximately A$10.5 million in cash as of the December 2025 quarter and maintaining a tight capital structure supported by institutional investors focused on resource development. However, the company acknowledges that approximately A$84 million in additional funding will be required to progress development, with no guarantee of securing this capital on favourable terms. Potential strategies include project finance, strategic partnerships, or partial asset sales.

The company’s forward-looking statements emphasize the inherent uncertainties in exploration and development, including commodity price fluctuations, technical challenges, and regulatory approvals. Nonetheless, Black Canyon’s track record of discovery and methodical advancement of its manganese assets suggest a compelling growth story in a market increasingly attentive to battery and clean energy minerals.