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K. Hill manganese project, Botswana – update

Image of K. Hill manganese ore

Image by Giyani Metals

3rd June 2022

     

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Name of the Project
K. Hill manganese project.

Location
Kanye basin, south-eastern Botswana.

Project Owner/s
Manganese development company Giyani Metals Corp.

Project Description
The project will be developed to produce high-purity manganese sulphate monohydrate (HPMSM), a precursor chemical used in the manufacturing of rechargeable battery cathodes for electric vehicles.

The project is expected to produce 891 000 t of high-purity manganese sulphate monohydrate over its ten-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The updated preliminary economic assessment (PEA) has increased the project’s pretax net present value, at a 10% discount rate, from $357-million in the April 2020 PEA to $431-million in the April 2021 PEA. The internal rate of return has decreased from 82.10% to 80% after tax. The project has a payback of three years.

Capital Expenditure
The project will require a capital investment of about $153-million.

Planned Start/End Date
First shipments are expected in 2023.

Latest Developments
Giyani Metals has announced progress on its demonstration plant, feasibility study, exploration and corporate activities for its K.Hill project.

Giyani has reported that the design of the process flowsheet is under final review, and that the company has placed an order for one crystalliser unit of the demonstration plant.

The crystalliser unit is the biggest and longest lead item of the plant, and delivery is scheduled for the fourth quarter of 2022.

Construction and commissioning of the demonstration plant will be undertaken in South Africa before it is transported to the K.Hill project site.

First shipment of product samples to potential customers is expected in 2023.

The first of three key development objectives for the plant is that it demonstrates that the HPMSM product specifications can be achieved, based on the process flowsheet developed for the project.

The second objective entails providing product samples for potential buyers for supply chain testing and product qualification processes.

The third objective is to derisk the commercial plant development using the demonstration plant for optimisation of the ongoing process engineering work and as a training facility.

Once commissioned, the plant will be capable of producing about 600 kg/d of HPMSM crystals for delivery to potential customers for product testing.

Giyani has confidence in the metallurgical testwork completed to that point, as well as at that stage of development for the process flowsheet. This confidence enabled its engineering consultants to move towards completing and publishing the feasibility study.

The company has stated that the confirmation of the plant design will enable it to settle project parameters, including those of operating and capital expenditure; it is optimistic that the feasibility study could be released in the third quarter of 2022.

Key Contracts, Suppliers and Consultants
Mintek (metallurgical testwork); SRK Consulting (updated mineral resources estimate); and Tetra Tech subsidiary Coffey Geotechnics (metallurgical testwork programme and process flowsheet development).

Contact Details for Project Information
Giyani Metals Corp, tel +128 9291 4032 or email info@giyanimetals.com.

Edited by Creamer Media Reporter

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