Element 25 Signs Manganese Offtake Deal With OM Materials

Element 25, through its subsidiary Butcherbird Operations, signed a binding long-term offtake agreement with OM Materials, a subsidiary of OM Holdings. The contract grants OM Materials exclusive global marketing rights for all manganese concentrate produced at the Butcherbird Mine in the Pilbara region of Western Australia, excluding non-conforming material and the company's own needs for high-purity manganese sulphate production.

The agreement utilizes a take-or-pay structure for an initial five-year term, with an option for a five-year extension. To support project cash flow, the deal includes prepayment provisions. Finalization remains conditional upon board approvals, regulatory clearances, and project financing, which may include funding from the Northern Australia Infrastructure Facility.

This partnership is central to the Butcherbird Expansion Project, which aims for an annual output of 1.1 million tonnes of manganese concentrate. Mechanical completion of the project is expected in the first quarter of 2027. Justin Brown stated the agreement secures a high-quality partner and leverages the downstream smelting capability of OM Holdings to provide a strong commercial foundation.