Element 25 Ltd has announced the execution of integrated mining services and ore haulage services agreements with Regroup Australia Pty Ltd (ReGroup) for its Butcherbird manganese mine in Western Australia.
The signing of these long–term contracts with ReGroup it says represents a major milestone for the delivery of the Butcherbird Expansion Project (BBX) and materially advances the project’s operational readiness. By securing a single contractor across mining and haulage activities, Element 25 has established an integrated operating model designed to optimise productivity, reduce operating costs, minimise commercial interface risk and enhance overall project efficiency.
Element 25 is in the process of expanding Butcherbird to a nominal 1.1 Mt/y of manganese concentrate production, based on an updated January 2025 Feasibility Study (BBX FS) and an updated Ore Reserve of 101.4 Mt at 10.4% Mn (10.54 Mt contained manganese), supporting an 18+ year Life of Mine at the planned throughput rate.
The planned increased production will supply customers in the established ferroalloys (steel) market as
well as securing long–term feedstock for its proposed high purity manganese sulphate monohydrate
(HPMSM) facility in Louisiana, USA.
Element 25 Managing Director Justin Brown said: “Execution of the mining services and ore
haulage agreements represents a key milestone for the Butcherbird Expansion Project. Securing long–
term, dedicated mining and logistics capacity and capability is fundamental to delivering a reliable and efficient pit–to–port supply chain, and these agreements represents two key steps in advancing
Butcherbird toward construction. We look forward to once again working with ReGroup to deliver safe, efficient, sustainable and cost–effective operations as we progress through construction and into expanded operations at Butcherbird.”
ReGroup Managing Director Michael Still said: “As a long–term partner of Element 25, we are pleased to be continuing our collaboration with the company in its expanded operation at Butcherbird, providing an end–to–end solution for mining and haulage. Under this integrated package, we will be working on–site to mine ore and then deliver it to Utah Point for shipment, working closely with the E25 team throughout this process to ensure it is carried out safely and efficiently. We are excited to be working alongside Element 25 and look forward to commencing our new long–term contract at Butcherbird once commissioning is complete.”
Under the mining services Contract, ReGroup will deliver open pit mining services, including ore
extraction in accordance with Element 25’s rolling mine plans and associated activities required to
support processing, waste removal and stockpiling operations.
The ore haulage services agreement provides for the loading and transportation of ore from site to the
Utah Point port facility in Port Hedland under a structured and scalable logistics framework. Ore haulage from BBX to Utah Point is a core component of Element 25’s Pit–to–Port (P2P) supply chain.
The contracts cover on–site material handling, stockpile management and loading; road transport
logistics from mine to port, and real–time fleet monitoring and operational data integration to support
end–to–end visibility in line with the Company’s P2P business intelligence framework which will provide
clear transparency and visibility on all elements of the Project supply chain.
Commercial terms for the contracts are generally in line with the BBX FS, with volumes and performance, and KPIs directly linked to the BBX mine plan. The contracts include variable cost structure with a monthly floor for mining services and a scalable take or pay obligation for haulage, with cross defaults for underperformance in either contract providing a robust risk management structure for Element 25 and clear performance incentives for ReGroup. This structure will provide clear alignment between all parts of the P2P supply chain.
The contracts include conditions precedent and termination provisions usual for contracts of this type
and are linked to financial close under the funding arrangement with the Northern Australia Infrastructure Facility (NAIF).
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