SA’s Met63 to build demo plant for Canadian battery manganese project

Canadian-based mineral resource company Giyani Metals Corp has signed a deal with Met63, a South African hydrometallurgical engineering firm, for the construction of a demonstration plant that will produce high-purity manganese sulphate monohydrate (HPMSM) samples.

The samples will be tested by lithium-ion battery manufacturers and automotive original equipment manufacturers (OEMs) that have already requested them, from European, North American and Asian markets, before concluding potential offtake contracts.

This comes after Giyani developed the K.Hill battery-grade manganese project in Botswana, at a smaller scale than the demo plant, intended to leverage the growth of the battery-electric vehicle sector.

Giyani says the demo plant, which will initially be built and operated in Johannesburg and eventually relocated to Botswana, is expected to produce up to 600kg of dry HPMSM crystals per day, depending on feedstock characteristics.

“The demo plant is designed for a continuous process, so that HPMSM crystals meeting the stringent product specifications set by potential off-takers can be produced in a steady state operation,” it says.

The plant will be equipped with a sophisticated instrumentation and control system that will allow for the derisking of the commercial plant site, and for use as a training facility.

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Giyani says the construction of the plant is currently anticipated to be completed by mid-2023 with the first HPMSM product samples expected to be available for shipment in the second half of 2023. It says the timeline has been made possible due to early procurements of two crystallisers and associated accessories that were ordered in March and June, which are scheduled for delivery in the first quarter of 2023.

Giyani says the contract with Met63 covers the engineering, construction, and commissioning of the plant, on an open book and cost-reimbursable basis.

It indicates that the capital expenditure for the project, which will be funded by the company’s existing cash resources, is $9.2 million (over R158 million) – with incentives for Met63 based on the delivery of the demo plant on time, within budget and on specification.

“The support of our shareholders has allowed us to fund the construction and commissioning of a larger demo plant than originally envisaged, with a capacity of 600kg per day, despite inflationary pressures and cost increases across the mining industry,” notes Giyani CEO Robin Birchall.

“An increasing number of OEMs have highlighted the potential of manganese-rich cathodes and so our enlarged facility will be able to cater for increased demand for HPMSM samples.”

Birchall says the company’s low carbon process makes it an ideal partner for the supply of manganese battery material.

A trench at the K.Hill manganese project in Botswana. Image: Supplied

Nondumiso Lehutso is a Moneyweb intern.