Euro Manganese Applauds European Critical Raw Materials Act

Euro Manganese Applauds European Critical Raw Materials Act

The CRMA outlines how the EU will ensure a sustainable supply of raw materials essential to the energy transition.

Euro Manganese Inc. announced it supports the European Commission’s proposed Critical Raw Materials Act (CRMA) published on March 16, 2023, which outlines how the European Union (EU) intends to ensure a secure and sustainable supply of critical raw materials that are essential in supporting the energy transition.

The Company says it supports this proposed legislation and believes its Chvaletice Manganese Project in the Czech Republic is likely to benefit from it, as outlined below.

High-purity manganese (battery grade) included as a strategic raw material. “Manganese – Battery Grade” was added to the list of critical raw materials identified in the Act, which are those considered to be of high economic importance and high supply risk to the EU. “Manganese – Battery Grade” was also identified as a strategic raw material, which recognizes its importance in meeting Europe’s decarbonization efforts and in defense and space applications.

Europe currently relies on imports of high-purity manganese to meet 90% of its demand [ Source: BMO Global Commodities Research]. The Company’s Chvaletice Project expects to deliver almost 50 Kt of high-purity manganese metal per year when in full production, meeting approximately 25% of European demand and helping the EU reduce its trade reliance on this strategic raw material.

Chvaletice Project supports EU requirement for local extraction, processing, and use of recycled raw materials. The Act sets out clear benchmarks for domestic mining, processing and recycling. By 2030, of all critical raw materials consumed in the EU each year:

-10% to be mined from European Union sources;

-40% to be processed within the European Union; and

-15% to come from recycled materials.

Chvaletice Project meets criteria for recognition as a Strategic Project. To strengthen the EU’s raw materials value chain, CRMA establishes the concept of Strategic Projects, which are those that will make a meaningful contribution to the security of the EU’s supply of strategic raw materials. Other recognition criteria include:

-Project is technically feasible and production volumes can be estimated with a sufficient level of confidence.

-Project will be implemented sustainably: minimization of environmental impacts, use of socially responsible practices, creation of quality jobs, and meaningful engagement with local communities.

-Project will have cross-border benefits beyond the Member State concerned.

Euro Manganese says it intends to submit an application for recognition of the Chvaletice Project as a Strategic Project as soon as the application process opens.

“Securing access to critical raw materials to support the energy transition has never been more important,” said Dr. Matthew James, president & CEO of Euro Manganese. “We welcome the European Commission’s proposed Critical Raw Materials Act and the opportunities it presents for the Chvaletice Manganese Project. We remain focused on advancing the Chvaletice Project in order to provide the European battery value chain with a low-carbon, secure source of supply of high-purity manganese.

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