Euro Manganese (ASX: EMN) has entered into an offtake term sheet with FeMoCat for the sale of high-purity manganese sulphate and a process by-product, magnesium carbonate, from the company’s Chvaletice Manganese in the Czech Republic.
Highlights
- FeMoCat is an established industrial catalyst manufacturer, with a plant at Pardubice in the Czech Republic, less than 1 hour’s drive from the Chvaletice Manganese Project.
- Offtake tonnages represent a portion of the Project’s planned high-purity manganese sulphate monohydrate (HPMSM) production and a significant tonnage of the magnesium carbonate produced as a by-product.
- FeMoCat will use these products for its catalysts and Synthetic Hydrotalcites production in Pardubice.
- Pricing in the Term Sheet is designed to meet the Project’s debt finance banking covenants.
- The Company and FeMoCat intend to enter an offtake agreement, in which the pricing mechanism
and tonnages will become binding.
- The Term Sheet demonstrates the value of producing high purity manganese sulphate with market leading ESG credentials at Chvaletice and the ability to meet the needs of a larger and more diverse customer base.
FeMoCat is a global provider of catalysts for the manufacturing of commodity organic chemicals, including Formaldehyde, Aniline and Volatile Organic Compounds (VOC). In addition to manufacturing catalysts, FeMoCat also undertakes recycling of used catalysts and provides tolling services for other catalyst companies and is an advocate for Green Chemistry, seeking to reduce, eliminate, or prevent the generation of hazardous substances in the design, manufacture and application of its catalysts.
Offtake tonnages represent a portion of the Project’s planned high-purity manganese sulphate monohydrate (HPMSM) production. Magnesium carbonate is a by-product produced at Chvaletice from the purification of HPMSM, and a significant tonnage of magnesium carbonate offtake is included in the Term Sheet.
Deliveries are to commence from first production, ramping up with the Project’s production capacity, for an initial term of seven years with potential for renewals. The commencement of the initial term will be subject to successful qualification of the Company’s HPMSM and magnesium carbonate by FeMoCat. The qualification process shall commence with samples from the Project’s Demonstration Plant.
“The demand for Euro Manganese’s high-purity products from the Chvaletice Project continues to accelerate with companies recognising the impending deficit and securing their requirements via an offtake Term Sheet,” Dr. Matthew James, President and CEO of Euro Manganese, said.
“The fact that FeMoCat requires locally sourced products for their existing operations in Pardubice, and potential for increased tonnages as they evaluate new opportunities, demonstrates the value of having a resource in the heart of Europe.
“Furthermore, the ability to provide FeMoCat with a valuable magnesium carbonate feedstock, from one of the Project’s by-products, underscores both companies commitments to maximising process efficiency and circularity.”
