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K.Hill battery-grade manganese project, Botswana – update

Manganese ore from the K. Hill project

Photo by Giyani Metals Corporation

2nd February 2024

     

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Name of the Project
K.Hill battery-grade manganese project.

Location
Botswana.

Project Owner/s
Giyani Metals Corporation.

Project Description
K.Hill will be one of the biggest high-purity manganese sulphate monohydrate projects in the world. HPMSM is a refined precursor material used in the production of cathode powders for lithium-ion batteries deployed in electric vehicles.

A preliminary economic assessment (PEA) published in July 2023 evaluates a base case scenario that considers a single production line with a feed capacity of 200 000 t/y to process manganese oxide material to produce HPMSM over a 57-year life-of-project (LoP). The LoP includes a 49-year life-of-mine plus 8 years of stockpile rehandling.

The PEA also evaluates an upside case, which assumes the construction of an additional production line from Year 5 of operations to increase total feed capacity to 400 000 t/y, reducing the LoP to 31 years.

The project includes a crushing facility, including a run-of-mine pad and stockpiles, a three-stage crushing plant and a crushed material bin. It also includes a processing area, including grinding, extraction, purification, fluoride polishing, crystallisation, product storage and handling; water treatment, reagent storage and tails handling; a sulphur dioxide plant; plant infrastructure and utilities, including steam and air plants; and low-voltage switch rooms.

A 4.5 MW solar plant covering 7.6 ha will be built 1.2 km west-north-west of the processing plant entrance gate. The large-scale demonstration plant that emulates the continuous process of the proposed full-scale K.Hill commercial plant is under construction in South Africa. The plant will validate the process flowsheet, mitigate commercial processing plant risk and facilitate off-take qualification.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $1.21-billion and an internal of return of 33%, with a payback period of two years.

Capital Expenditure
$282.64-million.

Planned Start/End Date
First commercial production is expected in the third quarter of 2025, with ramp-up expected to be completed in the third quarter of 2027.

Latest Developments
Giyani Metals has secured $10-million in funding from private equity fund ARCH Sustainable Resources Fund. The funding fulfils a key condition for the drawdown of a $16-million convertible loan facility secured from South Africa’s Industrial Development Corporation.

The combined $26-million in funding will be used to progress the project to a final investment decision.

Activities will include an optimised feasibility study and completing the construction, commissioning and operation of a demonstration plant to produce battery-grade manganese. The demonstration plant will enable Giyani to progress offtake discussions with potential buyers.

Key Contracts, Suppliers and Consultants
SRK Consulting (feasibility study); Mintek (metallurgical testwork); and Tetra Tech (metallurgical testwork programme).

Contact Details for Project Information
Giyani Metals Corporation, email info@giyanimetals.com.

Edited by Creamer Media Reporter

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