JOHANNESBURG (miningweekly.com) – Toronto-listed Canadian company Giyani Metals has received an additional R29.9-million from South Africa’s State-owned Industrial Development Corporation (IDC) for its high-purity manganese sulphate monohydrate (HPMSM) demonstration plant in Johannesburg.

HPMSM is a refined precursor material used in the production of cathode powders for lithium-ion batteries deployed in electric vehicles (EVs) and energy storage systems (ESSs).

“We would like to thank the IDC for being such a supportive partner,” Giyani interim executive chairperson Nigel Robinson stated in a media release to Mining Weekly on Friday, March 20.

The extra R29.2-million has increased the total loan facility to R264.3-million and the maximum combined loan facility under the IDC facilities to R329.9-million, Giyani outlined.

Although Giyani does not intend to recommence demonstration plant operation, the completion deadline date of the demonstration plant has been extended to June 30.

The continued operation of the demonstration plant has confirmed demonstration plant scale reagent consumption and contributed to operating knowledge of the crystallisers and purge management at a large scale.

This data will be incorporated into a definitive feasibility study (DFS) on the project. As a result, the DFS is now expected to be completed during the second quarter of this year.

The HPMSM enabled by the IDC’s additional funding is being prepared for analysis by interested offtakers.

“We look forward to announcing these results to the market as soon as they become available, which will enable Giyani to ramp up towards securing offtake agreements and advance project financing discussions,” Robinson added.

As the developer of the K.Hill battery-grade manganese project in neighbouring Botswana, where a commercial-scale HPMSM site is planned, Giyani is focused on becoming the preferred producer of sustainable, low-carbon high-purity battery-grade EV and ESS manganese through its bespoke hydrometallurgical process.

Under the terms of the addendum to its existing convertible loan facility agreements with the IDC, additional security over certain project assets and information has been granted in favour of the IDC.

Giyani has undertaken and satisfied the provision of funding not less than R40-million to its subsidiaries to support completion of its DFS and the IDC will have the right to nominate one director to the board of Giyani if it holds more than 10% of the issued and outstanding common shares of the company.

As reported by Mining Weekly last year, high-purity manganese oxide produced from the Johannesburg demonstration plant met Phase 1 qualification standards set by US battery technology company Charge CCCV, which enabled the advance to Phase 2 of Charge CCCV's digital DNA Supply Chain Qualification Programme.

A preliminary economic assessment (PEA) published in July 2023 evaluates a base case K.Hill scenario that considers a single production line with a feed capacity of 200 000 t/y to process high-purity manganese oxide material to produce HPMSM over a 57-year life-of-project, which includes a 49-year life-of-mine plus eight years of stockpile rehandling.

The PEA also evaluates an upside case, which assumes the construction of an additional production line from year 5 of operations to increase total feed capacity to 400 000 t/y, reducing the life-of-project to 31 years.

Included in the project is a crushing facility with a run-of-mine pad and stockpiles, a three-stage crushing plant and a crushed material bin. It also includes a processing area, including grinding, extraction, purification, fluoride polishing, crystallisation, product storage and handling; water treatment, reagent storage and tails handling; a sulphur dioxide plant; plant infrastructure and utilities, including steam and air plants; and low-voltage switch rooms.

A 4.5 MW solar plant covering 7.6 ha is planned 1.2 km west-northwest of the processing plant entrance gate.

The $282.64-million scheme has a pretax net present value, at an 8% discount rate, of $1.21-billion and an internal of return of 33%, with a payback period of two years.

Construction is expected to begin in 2027, with ramp-up of the commercial plant in 2028 and full production in 2030.

Following the production of high-purity manganese oxide earlier this year, dual product offering capability is positioning Giyani to supply products to a broad range of potential future battery technologies.

The demonstration plant is said to have provided “invaluable” information, and a derisked process flowsheet is expected to be carried forward into the design and operation of the planned full-scale battery-grade manganese Botswana plant. 

Contractors, suppliers and consultants include SRK Consulting (feasibility study); South Africa's State-owned Mintek (metallurgical testwork); Tetra Tech (metallurgical testwork programme); Wood (lead DFS consultant); and Minopex (demonstration plant operation).