Euro Manganese Inc (ASX:EMN) (CVE:EMN) (FRA:E06A) has taken a key step in bringing Chvaletice Manganese Project in the Czech Republic to production by placing an order for a high-purity manganese products demonstration plant.


The plant, for which procurement and fabrication will commence immediately, will set the stage for initiation of the Chvaletice high-purity manganese products supply chain qualification process with multiple prospective customers.


Pilot plant scale-up


It will be a seven-times scale-up of the successful pilot plant that the company operated in 2018 and is designed as a locked-cycle, semi-batch, manually operated system of interconnected modules that can be utilised as a circuit or as standalone components.


EMN president and CEO Marco Romero said: “We are delighted to report that we have ordered our Demonstration Plant for the Chvaletice Manganese Project.


“Once commissioned, we expect to begin the test phase of the supply chain qualification process for our high-purity manganese products with multiple potential customers.”


Shares higher


Shares have been up almost 9% to A$0.435 after reaching a new record high of A$0.46 on Monday.


The demonstration plant is intended to replicate the entire process flowsheet proposed in the project’s 2019 Preliminary Economic Assessment.


It will produce around 32 kilograms daily of high-purity electrolytic manganese metal (HPEMM), that can be converted into approximately 100 kilograms of dry crystalline high-purity manganese sulphate monohydrate (HPMSM).


Delivery in 2021


The plant is scheduled to be delivered at the Chvaletice site during the summer of 2021 and will be erected and operated in two existing industrial buildings adjacent to the Chvaletice tailings site, on land EMN agreed to purchase in October 2018.


EMN awarded a fixed-price, turnkey contract for the building, delivery and commissioning of the plant to Changsha Research Institute for Mining and Metallurgy (CRIMM).


This contract includes performance and completion guarantees, as well as commissioning services and an operator training program.


No additional permits are required for the plant other than a building permit.


Production allocations


To date, about 55% of the plant’s planned first-year production of HPEMM and HPMSM has been allocated to five prospective customers for testing, in the context of their supply chain qualification process.


Discussions are ongoing with additional potential customers for the allocation of products for supply chain qualification. These include several chemical, battery and automotive companies.


Upon successful completion of the initial supply chain qualification process by these parties, and subject to a production decision being made based on the results of a feasibility study, the company plans to enter into long-term commercial offtake arrangements for the supply of its high purity manganese products.


Dry stacking operation approved


A dry stacking tailings operation has been approved at Chvaletice without the introduction of additional fees.


Romero added: “We have also continued to make steady progress on the regulatory/permitting front, following our filing of the EIA notification in late June.


“We are also pleased to report the acquisition of three additional, but critically important pieces of land that complete our land assembly for the proposed Chvaletice commercial plant site.


“These provide additional room and flexibility for the plant layout and will provide us with a second rail connection, through a neighbouring rail siding, to the major line that runs adjacent to our project.”

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