Euro Manganese (ASX: EMN) has delivered a positive preliminary economic assessment (PEA) for its Chvaletice manganese project in the Czech Republic, outlining a phased development pathway for a proposed European high-purity manganese operation.
The new assessment produced a post-tax net present value (NPV) of $492 million using an 8% discount rate, a post-tax internal rate of return (IRR) of 13.8%, and a post-tax payback period of 7.3 years from the start of processing.
The project returned a pre-tax NPV of $740m, a pre-tax IRR of 16% and a 48% operating margin across a planned 26-year operating life.
Euro Manganese will now advance Chvaletice toward a full feasibility study targeted for completion in the first half of 2027.
Updated Development Plan
The PEA incorporates optimisation work, demonstration plant learnings, customer testing and feedback, updated market conditions, and further process engineering to build on the company’s 2022 feasibility study and.
The revised flowsheet supports nominal annual production of 150,000 tonnes per annum of high-purity manganese sulphate monohydrate (HPMSM), with annual high-purity manganese metal (HPEMM) production converted to HPMSM on site.
The project is based on processing approximately 26.96 million tonnes of historical tailings grading 7.33% total manganese and 5.86% soluble manganese.
Life-of-project HPMSM production is estimated at 3.652Mt, containing 1.185Mt of manganese.
Phased Capital Strategy
Euro Manganese has adopted a phased construction strategy designed to reduce upfront capital requirements and align the second stage of investment with project cash flow.
Initial Phase 1 capital requirements are estimated at $627.5m for 50% capacity, with Phase 2 expansion capital of $197.8m planned to take the plant to full capacity.
Total capital expenditure is estimated at $964.4m, including sustaining capital for mining, the residue storage facility, and process-related requirements.
Capital costs remain broadly consistent with the 2022 feasibility study despite the increased HPMSM output and the inflationary environment.
Recovery Improvements
Additional metallurgical test work, demonstration plant operating data, and engineering updates have lifted estimated recoveries to 60% for HPMSM and 61% for HPEMM.
The updated process route includes high-intensity wet magnetic separation, acid leaching, impurity removal, deep purification, manganese electrowinning, HPMSM crystallisation, and drying.
The revised flowsheet also incorporates recovery of magnesium carbonate as a by-product, with potential production of up to 20,000tpa for incremental value with minimal additional capital.
Operating costs are estimated at $181.99 per tonne of plant feed for onsite costs and $213.71/t after freight, insurance, selling costs and royalties.
Market and Strategic Position
The PEA assumes an average life-of-project HPMSM price of $2,888/t based on an April 2026 market study prepared for Euro Manganese.
Chvaletice has most permits secured, a finalised environmental and social impact assessment, official designation as a strategic deposit under Czech law, and strategic project status under the European Union Critical Raw Materials Act.
The project is positioned as a potential traceable battery-grade manganese source for customers seeking to reduce dependence on Chinese supply.
Euro Manganese said the Czech Republic’s status as a NATO member and close US ally also positioned Chvaletice as a potential National Defense Authorization Act-compliant source of high-purity manganese for US-related procurement frameworks.
Chvaletice Project Economics
The economic model estimates total life-of-project revenue including HPMSM and magnesium carbonate of $10.989 billion, with pre-tax project cash flow estimated at $4.304b and post-tax undiscounted cash flow of $3.353b after estimated taxes of $951.4m.
Sensitivity analysis showed the post-tax NPV could rise to $721m with a 10% increase in HPMSM prices or fall to $263m with a 10% decrease, while a 10% increase in total operating costs reduced the post-tax NPV to $372m and a 10% reduction lifted it to $611m.
“Our recent optimisation work has delivered measurable improvements in recovery, confirming both the strength of our technical strategy and the reliability of our process,” chief executive officer Martina Blahova said.
Ms Blahova said the project had retained a strong economic profile despite challenging market conditions.
“It provides a clear pathway to unlocking the full long-term value of the Chvaletice Manganese Project as demand accelerates for localised, traceable, and sustainably produced battery grade high purity manganese,” she said.
Permitting and Community Position
Chvaletice has secured a positive Environmental and Social Binding Statement from the Czech Ministry of Environment, confirming assessed environmental and social impacts are acceptable and that the project is feasible.
The project is expected to reprocess historical tailings, reduce existing groundwater and surface water contamination linked to deposited material, and progressively reclaim the site into a near-natural area with biodiversity, recreational, and sporting uses.
Euro Manganese expects Chvaletice to create between 800 and 1,000 jobs during construction and approximately 400 direct operational roles, with an 85% local hiring commitment.
Chair Rick Anthon said the project had advanced with a focus on technical rigour, capital efficiency, and responsible development.
“With no operating manganese mines in Europe and as the only integrated high purity manganese producer in Europe and North America, Chvaletice is uniquely positioned to become a cornerstone of Europe’s emerging battery materials supply chain,” Mr Anthon said.
