Element 25, Om Holdings sign long-term binding manganese offtake agreement

• Offtake agreement with Om Holdings for manganese produced at Element 25’s Butcherbird mine
• Agreement helps advance Butcherbird Expansion Project (BBX).
• Expansion targeting 1.1 million tonnes per annum (Mtpa) of manganese concentrate
• Agreement provides offtake certainty for five-year term.

Element 25 (ASX:E25) has signed a binding long-term offtake agreement with a subsidiary of OM Holdings (ASX:OMH) for manganese concentrate produced in Western Australia.

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The concentrate will be produced at Element 25’s Butcherbird mine in the Pilbara and will support plans for future feedstock for battery-grade high purity manganese sulphate (HPMSM) production.

The deal also supports Element 25’s planned expansion at Butcherbird.

Element 25 MD, Justin Brown, said the agreement establishes a long-term sales channel for manganese concentrate from BBX, which is targeting expanded 1.1 million tonnes per annum (Mtpa) of manganese concentrate production and represents a key milestone in advancing BBX towards development and financing.

“This agreement secures a high-quality, long-term offtake partner for manganese concentrate produced at our expanded Butcherbird Operations, extending our existing relationship with OMH and its subsidiary, OMM,” Mr Brown said.

“OMH has established downstream smelting capability, providing a strong commercial foundation for the Butcherbird Project over the initial five years of operation, and potentially beyond that timeframe.”

He told shareholders that securing a strong offtake partner also represented a major step forward in de-risking the development pathway for the Butcherbird expansion, giving lenders and investors the confidence needed to support project financing.

“The structure of our agreement delivers revenue certainty while still preserving market exposure, ensuring we participate in upside conditions without compromising stability,” Mr Brown said.

“Importantly, the agreement maintains our strategic flexibility, allowing Element 25 to continue advancing our value-add,” he said.

The offtake contract is the latest agreement executed by Element 25 for BBX, following its recent announcement of long-term mining services and ore haulage services agreements with ReGroup Australia.

Element 25 is in the process of expanding Butcherbird, based on an updated January 2025 feasibility study and an updated ore reserve of 101.4 million tonnes (Mt) at 10.4% manganese for 10.54 Mt of contained manganese,

The study supports an 18-plus-year life of mine (LOM) at the planned throughput rate.

As remaining outstanding contracts for BBX close to finalisation, Element 25 currently forecasts mechanical completion and commissioning in Q1 CY2027.

OM Holdings is a long-established manganese alloy producer and operator of manganese smelting facilities in Malaysia, providing a downstream industrial customer for Butcherbird production.

E25 was at 25¢ with an $84.71M cap prior to markets opening.

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