Firebird Metals (ASX: FRB) has signed a non-binding Memorandum of Understanding (MoU) with Eramet for the supply of manganese ore for Stage One of operations at Firebird’s proposed manganese sulphate (MnSO4) and manganese tetra-oxide (Mn3O4) plant in China.
The agreement positions Firebird to meet future operational requirements and represents a crucial milestone in the company’s journey toward becoming a low-cost and near-term MnSO4 and Mn3O4 producer. However, it is important to note that the MOU is non-binding and does not constitute a legally binding agreement.
Stage One of operations aims to produce 50,000tpa of battery grade MnSO4 and 10,000tpa Mn3O4 utilising third party ore.
Stage Two operations remain firmly focused on leveraging the company’s 100%-owned Oakover Project, strategically located 85 kilometres east of Newman in Western Australia’s East Pilbara region, once production commences. This phase is forecast to expand production to approximately 300,000tpa MnSO4 in China, alongside 100,000tpa of battery-grade MnSO4 produced in Western markets.
“I am very pleased to announce that Firebird has entered into a MoU agreement with Eramet, a world-renowned supplier of manganese ore and a truly high-calibre partner,” Managing Director, Peter Allen, said.
“Securing this reliable and strategic supply of manganese ore marks a pivotal step in accelerating our journey to production and building a strong foundation for sustainable cash flow generation.
“Firebird has made rapid progress in the execution of our unique LMFP strategy, attracting and securing high-profile partnerships that reinforce the strength of our strategic vision and increasing confidence in our ability to deliver on key milestones.
“This agreement with Eramet reflects our commitment to establishing a vertically integrated operation, and positions us to deliver on our long-term strategy of supporting the clean energy transition by becoming a key supplier of manganese for LMFP batteries.
“The company and I look forward to building a strong partnership with Eramet to deliver value for all stakeholders.”
The non-binding MoU between Firebird and Eramet establishes a collaborative framework aimed at securing the regular purchase and supply of manganese ore. The agreement specifies an annual supply of 80,000 tonnes, with 20,000 tonnes delivered quarterly. This arrangement is
designed to align with Firebird’s operational requirements and ensure a consistent and reliable logistics chain.
The agreed annual supply volume exceeds the 66,000 tonnes per annum identified in Firebird’s Feasibility Study, the additional tonnage serves as a strategic buffer, mitigating potential disruptions across the logistics chain and safeguarding uninterrupted operations.
The MoU reflects the shared intent of Firebird and Eramet to progress the collaboration into a formal, long-term supply agreement. This transition is contingent upon Firebird achieving key milestones, including securing project financing, commencing construction of the processing plant, and initiating ore requirements for production.
Terms relating to pricing and payment mechanisms are commercially sensitive and confidential. This approach allows both parties to operate within a competitive market environment while advancing their partnership towards a sustainable and mutually beneficial supply arrangement.