Element 25 has signed new long-term mining services and ore haulage services agreements with Regroup Australia for its Butcherbird Mine in the Pilbara region of Western Australia.
The agreements form part of Element 25’s plans to increase manganese concentrate production at the Butcherbird mine to 1.1 million tonnes per annum (mtpa), as outlined in an updated feasibility study completed in January 2025.
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Under the new contracts, Regroup Australia will be responsible for both mining and transporting ore from the site to the Utah Point port facility in Port Hedland.
Appointing a single contractor for both activities marks a continuation of the companies’ existing collaboration and introduces an integrated operating model intended to improve productivity, contain costs, and reduce commercial interface risks.
The contracts feature a variable cost structure, with a monthly minimum for mining services and a scalable take-or-pay commitment for haulage.
Cross-default provisions are included if there is underperformance in any part of the contract.
The agreements remain subject to conditions precedent and termination clauses common in contracts of this nature and are connected to financial close under the company’s funding arrangement with the Northern Australia Infrastructure Facility (NAIF).
Production from the Butcherbird Project is aimed at supplying both established ferroalloy (steel) markets and as feedstock for Element 25’s planned high purity manganese sulphate monohydrate facility in Louisiana, US.
The latest ore reserve for the Butcherbird project stands at 101.4mt at 10.4% manganese, supporting an expected mine life of more than 18 years at the planned output rate.
Other key commercial contracts for the expansion are close to finalisation, including offtake agreements and camp services arrangements.
Construction tenders have been issued to selected bidders, with evaluations currently underway.
All required permits for construction are in place and mechanical completion and commissioning of the Butcherbird Expansion Project is expected in the first quarter of calendar year 2027.
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.”
