Butcherbird Manganese Project
NAIF has approved a loan of up to $50 million to support Element 25 Limited’s Butcherbird Manganese Project in Western Australia’s Pilbara region. This investment aims to boost production and drive economic growth in northern Australia.
May 2025
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Pilbara region, Western Australia
The Northern Australia Infrastructure Facility (NAIF) has reached an Investment Decision to support Element 25 Limited’s Butcherbird Manganese Project in the Pilbara region of Western Australia with a loan amount of up to $50 million.
With a total project value of $70.5 million and forecast public benefits of $909.1 million, the expanded operations promise to bolster the production of manganese concentrate critical to the steel sector and global clean energy transition.
Proponent Background
Element 25 Limited (ASX: E25) is an Australian mining company specialising in the production of manganese concentrate.
Element 25 aims to become a leader in the production of high-purity manganese sulphate monohydrate (HPMSM), a critical lithium ion battery raw material, supporting the decarbonisation of the transport and energy sectors.
Project Overview
Element 25’s flagship operation, the Butcherbird Manganese Project, is situated in the Pilbara region of Western Australia. The project involves the expansion of the company’s existing manganese ore mining and concentrating operations, increasing manganese concentrate production from 360Ktpa to 1.1Mtpa. The expanded operations will involve larger-scale open-cut mining activities and upgrades to the beneficiation plant, including:
- Enhanced crushing and screening circuits; and
- Installation of a Dense Media Separation (DMS) unit for optimised recoveries and improved concentrate grade.
The Butcherbird site benefits from existing infrastructure, which will support expanded operations:
- Road network providing access to Port Hedland
- Admin buildings and operational facilities
- Tailings storage facility
- Water bores and worker accommodation
The current road network is sufficient to meet increased demands, ensuring smooth logistic operations throughout the project’s expansion phase.
The expanded operations will optimise recoveries and concentrate grade, enhancing the project’s overall viability through economies of scale.
Public Benefit
Independent economic consultant Hatch has completed a public benefit assessment that has forecast an economic impact of $909.1 million in Gross Regional Product to the Pilbara region during construction and over an 18-year operational life. Hatch modelling has forecast 149 direct and indirect jobs will be created during construction with a further 229 ongoing operational jobs forecast.
How we helped
Securing commercial bank finance for the Butcherbird Manganese Project presented challenges. The manganese market offers limited transparency and few effective hedging mechanisms compared to more established commodities. Commercial banks have limited experience in this commodity, and price volatility further reduces their risk appetite, making them hesitant to participate.
NAIF plays a critical role as a gap financier by providing finance where commercial terms are unviable, or unavailable, particularly for junior proponents with limited balance sheet strength.
The proponent has demonstrated a commitment to advancing the project, with stage one operations successfully launched and providing valuable insights for future development. Stage two is poised to further strengthen the project's overall viability, leveraging:
- Economies of scale,
- Improved processing recoveries,
- Sustained market improvement.
Given the project’s modest size, it is suitable for financing by a sole lender, with NAIF positioned well to fill this gap effectively. The project's extended mine life aligns with our capability to offer longer-term financing of 11 years.
Securing support from the Northern Australia Infrastructure Facility reaffirms the Federal Government’s commitment to developing Australia’s critical minerals sector as well as the economic importance of our Butcherbird Project to Australia and the Pilbara region of WA.
Expanding Butcherbird is critical to our plans to develop a first-of-its-kind manganese processing facility in the USA in partnership with global automakers General Motors and Stellantis, who are also providing support to Element 25.
We are grateful to have NAIF backing our expansion plans via a long-term loan, which will help us finalise financing for this important and strategic growth project.”
Justin Brown
Managing Director, Element 25 Limited
Related Links
IES Committments
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Indigenous Engagement
- Karlka Nyiyaparli Peoples and the The Ngarlawangga Peoples
The Project is primarily located on a Native Title determination with the Nyiyaparli people and on the western end of the Project, is a Native Title determination with the Ngarlawangga people. Nyiyaparli Country, located in the East Pilbara encompasses the township of Newman, the Aboriginal communities of Jigalong and Parnpajinya, multiple pastoral leases, and significant mining operations. The traditional boundaries of Nyiyaparli Country extend from the Fortescue River in the north to the Hamersley Ranges in the south.
The Nyiyaparli people have lived on this land for over 41,000 years, maintaining a deep spiritual and cultural connection to Ngurra (Country). The Karlka Nyiyaparli Aboriginal Corporation acts on behalf of the Nyiyaparli Traditional Owners and the Ngarlawangga Aboriginal Corporation represents the neighbouring Ngarlawangga Traditional Owners, both managing Native Title rights, caring for country initiatives, as well as cultural, economic, and community development for their registered native title bodies.
Element 25 have developed their Indigenous Engagement Strategy (IES) with commitments to Indigenous employment, procurement and participation outcomes in collaboration with Karlka Nyiyaparli Aboriginal Corporation.
Key commitments include:
- Achieve a target of 10% total Indigenous employment, including 5% from the Pilbara region.
- Achieve a target of Indigenous procurement spend of 10% of the total annual contested expenditure by the end of the second year.
- Appoint a Superintendent, First Nations Affairs to oversee implementation of the Indigenous Engagement Strategy.
- Work collaboratively with Traditional Owners protecting cultural heritage and support caring for country opportunities with the Karlka Nyiyaparli Ranger Program.
- Require key contractors to have strategies supporting Indigenous procurement outcomes.
- Set aside $1m in credit assistance to support Nyiyarparli-owned businesses in securing long-term contracts at the Project to enable business growth.
- Partner with local Aboriginal community-controlled organisations to sponsor and support community-led initiatives across Newman and the Pilbara.
- Annual sponsorship of scholarships supporting Nyiyaparli people with tertiary education.
- Partnering with Traditional Owners on cultural awareness and competency training programs delivered to all personnel working on the project.
