Element 25 Ltd (ASX:E25, OTCQX:ELMTF, FRA:QFP) has awarded long-term mining services and ore haulage contracts for the Butcherbird Expansion Project in WA’s Pilbara region, marking a key operational milestone as the company advances the manganese project toward construction and expanded production.
Regroup Australia Pty Ltd has been appointed for both contracts, extending its long-term relationship with Element 25 and creating an integrated mining-to-port operating model for the project.
Under the mining services agreement, Regroup will provide open pit mining services, including ore extraction, waste removal, stockpile management and related activities aligned with Element 25’s rolling mine plans.
The ore haulage agreement covers loading and transport of ore from Butcherbird to the Utah Point port facility in Port Hedland, a core part of Element 25’s pit-to-port supply chain.
“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," ReGroup managing director Michael Still said. "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.”
What it means for Butcherbird
The contracts support Element 25’s plan to expand Butcherbird to nominal production of 1.1 million tonnes per annum of manganese concentrate, backed by an updated feasibility study and ore reserve of 101.4 million tonnes at 10.4% manganese.
The integrated contractor model is designed to improve productivity, reduce operating costs, minimise interface risk and provide clearer operational oversight through fleet monitoring and supply chain data integration.
“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," Element 25 managing director Justin Brown said.
"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.”
What it does for E25
For Element 25, the agreements materially advance project readiness by locking in dedicated mining and logistics capacity ahead of expanded operations.
The company said commercial terms were generally in line with the Butcherbird Expansion feasibility study, with contract volumes and performance KPIs linked to the mine plan.
The structure includes performance incentives, cross-default provisions and risk management mechanisms designed to align mining, haulage and broader pit-to-port operations.
Supports steel and battery markets
Expanded Butcherbird output is expected to supply traditional ferroalloy steel markets while also providing feedstock for Element 25’s proposed high-purity manganese sulphate monohydrate facility in Louisiana, USA.
That refinery strategy is aimed at the electric vehicle battery market, where Element 25 is developing battery-grade manganese supply with support from partners including General Motors and Stellantis.
What’s next
Other key commercial contracts are progressing, with discussions with preferred ore offtake partners at an advanced stage and a camp services contract close to finalisation.
The company has also issued a construction contract tender package to pre-qualified bidders, with initial bid evaluations underway.
All permits remain in place, and Butcherbird remains on track for mechanical completion and commissioning in Q1 CY2027.