Euro Manganese Inc. (ASX:EMN) has submitted an application to designate its Chvaletice Manganese Project as a “Strategic Project” under the European Union’s Critical Raw Materials Act (CRMA).
This move marks a significant step for the company in its efforts to establish itself as a key player in the European battery supply chain.
The Chvaletice Manganese Project, located approximately 90 kilometres east of Prague in the Czech Republic, is a unique waste recycling initiative.
The project aims to reprocess manganese-rich tailings from a decommissioned mine that operated between 1951 and 1975.
This approach not only avoids the negative impacts of traditional hard rock mining but also contributes to environmental remediation by cleaning up a contaminated site.
Achieving Strategic Project designation could provide Euro Manganese with several advantages:
- Access to Financing: The company may gain access to funding from various sources, including EU institutions, national European banks, and private financial institutions.
- Streamlined Permitting: The CRMA provides for accelerated permitting processes for designated Strategic Projects, potentially reducing scheduling risks.
- Enhanced Role in EU Supply Chain: Strategic Project status would strengthen Euro Manganese’s position in the EU’s raw materials value chain.
The Chvaletice Project is poised to play a crucial role in Europe’s green transition:
- It has the potential to supply up to 20 per cent of the projected 2030 European demand for high-purity manganese.
- The project aligns with EU and Czech Republic goals for reducing carbon footprint and promoting a circular economy.
- It is expected to create approximately 400 full-time jobs and generate substantial fiscal revenues for the Czech State and local communities.
The European Commission is expected to announce the first list of Strategic Projects in December 2024, which could include the Chvaletice Project.
Dr. Matthew James, President & CEO of Euro Manganese, expressed optimism about the application, stating that achieving Strategic Project designation would underscore the company’s commitment to becoming the only integrated European producer of high-purity manganese for the battery supply chain.
As the EU seeks to secure its supply of critical raw materials, the Chvaletice Manganese Project’s potential recognition as a Strategic Project could mark a significant development in Europe’s efforts to establish a robust and sustainable battery supply chain.