Euro Manganese Inc. has achieved a critical milestone with the Czech Ministry of Environment's approval of its Environmental and Social Impact Assessment for the Chvaletice Manganese Project. This approval enables the company to advance its initiative to remediate historical mine tailings, rich in manganese, from a former pyrite mine. The project is distinguished by its high-purity manganese output, crucial for the production of electric vehicle batteries, especially those of the NMC (nickel-manganese-cobalt) variety.
Dr. Matthew James, President and CEO of Euro Manganese Inc., emphasized the project's exceptional Environmental, Social, and Governance (ESG) standards, noting its carbon footprint is significantly lower than the industry average in China. The project's Definitive Feasibility Study, completed in July 2022, projects a net present value of around US$1.3 billion, highlighting its economic viability and potential impact on the electric vehicle battery market.
The European Bank for Reconstruction and Development (EBRD), as the company's second-largest shareholder, along with the European Investment Bank (EIB), which has approved the project for appraisal, demonstrates strong European institutional support. Euro Manganese Inc. is currently exploring financial strategies, including a proposed 65% gearing, with anticipated funding from both the EIB and the EBRD. A financing package from Orion Resource Partners also offers non-dilutive funding options to shareholders, further solidifying the project's financial foundation.
Beyond the Chvaletice Manganese Project, Euro Manganese Inc. is developing an early-stage project in Quebec, aiming to produce IRA-compliant high-purity manganese sulphate. This initiative positions the company within an emerging battery materials hub, expanding its footprint in the sustainable energy sector.
Looking ahead, Euro Manganese Inc. is focused on securing additional offtake contracts and finalizing land access agreements for its Czech Republic project. These steps are crucial for the project's progression, building on the environmental approval that marks a significant achievement in the company's journey towards contributing to the green energy transition.
