Euro Manganese Inc. has reported favorable outcomes from the Preliminary Economic Assessment (PEA) of its Chvaletice Manganese Project in the Czech Republic. The evaluation highlights a pre-tax net present value (NPV) of US$740 million and a post-tax NPV of US$492 million, supported by a 16% internal rate of return and a 48% operating margin. These figures underscore the project’s potential as a significant player in the manganese market, which is crucial for electric vehicle battery production.
The focus on high-purity manganese is becoming increasingly critical as global supply dynamics evolve. Currently, China dominates this sector, accounting for around 95% of global refining capacity. This concentration poses a risk to Western battery manufacturers, who are keenly interested in diversifying their supply chains. The Chvaletice project stands out as the only integrated operation of its kind under development in Europe, positioning it strategically to meet the growing demand driven by the energy transition and supply chain diversification efforts.
The project promises robust economic potential even in fluctuating market conditions. With a conservative high-purity manganese sulphate monohydrate (HPMSM) price set at US$2,888 per tonne, the project maintains a 48% operating margin. Additionally, technical advancements have been demonstrated through improved recovery rates, reaching 60% for HPMSM and 61% for high-purity electrolytic manganese metal (HPEMM), thanks to optimization efforts at EMN’s demonstration plant and through metallurgical tests.
Spanning a 26-year mine life, the Chvaletice project aims for an annual production of 150,000 tonnes of HPMSM, offering full flexibility to switch between HPEMM and HPMSM based on customer needs. This adaptability ensures the project can respond effectively to market changes and customer requirements, enhancing its attractiveness to investors and stakeholders amid volatile commodity cycles.
Euro Manganese Inc., listed on TSX-V and ASX, is developing this project as Europe’s imminent source for high-purity manganese, a vital component for next-generation electric vehicles, energy storage systems, and defense applications. By reprocessing historical mine tailings, the company seeks to establish a fully traceable, low-carbon supply chain within the European Union, aligning with the continent’s clean-energy goals and drive for supply-chain independence.