Euro Manganese (TSXV, ASX: EMN) has finalized its second offtake deal in a week, this time with Blue Grass Chemical Specialties, for the sale of high-purity electrolytic manganese metal (HPEMM) from its Chvaletice projectin the Czech Republic. The agreement, spanning an initial term of seven years, involves deliveries of HPEMM, a portion of the project’s projected annual output of 14,890 tonnes.
The deal is subject to the successful qualification of the HPEMM within Blue Grass’s supply chain. Currently, an HPEMM sample from the demonstration plant is being evaluated by Blue Grass for this qualification. Euro Manganese reports that the product recently met the required specifications in tests by third-party laboratories.
Pricing for the HPEMM will follow a take-or-pay basis, adjusted according to a Western benchmark price for high-purity manganese. This benchmark includes attributes like high quality, traceability, and strong ESG credentials, including a low CO2 footprint. As there is no current market index for HPEMM, pricing will be linked to the index for high-purity manganese sulphate monohydrate (HPMSM), which was around $700 a tonne in Shanghai in March, according to S&P Global Markets.
This agreement follows a similar deal signed last week with Wildcat Discovery Technologies, which plans to build a plant in the US to produce cobalt/nickel-free cathode materials. Euro Manganese CEO Dr. Matthew James highlighted the strategic value of producing both high-purity manganese metal and sulphate at Chvaletice, offering customers flexibility for their manufacturing needs.
