Electric Metals Announces Positive PEA for the 100% US Domestic North Star Manganese Project Providing 100% U.S. Domestic Supply of HPMSM, Post-Tax NPV10% of US$1.39 Billion, IRR of 43.5%, and 23-Month Payback
Executive Summary
- Electric Metals (USA) Limited released a PEA for its 100% owned North Star Manganese Project in Minnesota, showing a post‑tax NPV10% of US$1.39 billion and an after‑tax IRR of 43.5%, with a payback period of just 23 months.
- The project targets production of high‑purity manganese sulphate monohydrate (HPMSM) for U.S. EV battery, energy storage, steelmaking and defense markets, aligning with U.S. critical minerals policy.
- Capital requirements total US$901 million (initial mine & processing facilities US$474.8 m, plant expansion US$150 m, sustaining/closure US$276 m) plus US$10 m working capital; projected average annual cash flow of US$249.6 m over a 25‑year life.
Key Details
- Resource Estimate (10% Mn cut‑off):
- Indicated: 7.6 Mt @ 19.07% Mn, 22.33% Fe, 30.94% Si
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Inferred: 3.73 Mt @ 17.04% Mn, 19.04% Fe, 30.03% Si
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Mineable Resource: 8.83 Mt @ 17.43% Mn, 19.84% Fe, 37.24% Si
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Production Assumptions:
- Annual mined ore: 368 kt (nominal capacity 400 kt/yr)
- HPMSM output after expansion: 180,331 t/yr (nominal plant capacity 200 kt/yr)
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Overall Mn recovery to product assumed at 90%
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Pricing: Base‑case HPMSM price US$2,500/t (held constant LOP).
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Capital Expenditures:
- Initial capex (incl. 25% contingency): US$474.8 m
- Processing plant expansion (incl. 25% contingency): US$150.0 m
- Sustaining & closure costs: US$276.0 m
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Working capital: US$10.0 m
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Operating Costs (per tonne):
- Mining: $94.30/tonne ore ($192.31/tonne HPMSM)
- Transport: $90.55/tonne ore ($184.66/tonne HPMSM)
- Processing: $200.00/tonne ore ($407.87/tonne HPMSM)
- G&A: $15.00/tonne ore ($30.59/tonne HPMSM)
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Total LOP operating cost: $399.85/tonne ore ($815.44/tonne HPMSM), equating to $3.53 bn over project life.
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Financial Highlights (Base Case):
- After‑tax NPV10%: US$1.39 bn
- After‑tax IRR: 43.5%
- Average annual after‑tax cash flow: US$249.6 m
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Payback period: 23 months from start of production
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Project Timeline: 2‑year construction, 3‑year ramp‑up to full production; total mine & processing life 25 years (23 years of operation).
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Sensitivity Analyses:
- NPV varies from US$712 m (‑25% HPMSM price) to US$2.06 bn (+25% price).
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IRR ranges from 28.4% (‑25% price) to 57.4% (+25% price).
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Next Steps: Proceed to pre‑feasibility and feasibility studies in 2026, advance permitting, engage with local communities and Tier‑1 EV/battery off‑takers, and evaluate expansion opportunities.
Notable Quotes
“The results of this PEA confirm that the North Star Manganese Project has the potential to become the first fully domestic source of high‑purity manganese sulphate monohydrate in the United States… This milestone underscores the importance of the Emily Manganese Deposit in supporting the clean energy transition, U.S. manufacturing, and national security.” – Brian Savage, CEO & Director
All forward‑looking statements are subject to risks and uncertainties as detailed in the release.