The Euro Manganese Inc CDI (ASX: EMN) share price is on watch this morning after news of the company's Chvaletice Project was released. Shares in Euro Manganese closed the last session trading for 47 cents.
The manganese producer has updated the market on its Chvaletice Project, which aims to produce high-quality and environmentally friendly ultra-high-purity manganese for European electric vehicle and lithium-ion battery industries.
The project is located 90 kilometres east of Prague and is expected to be completed in in late 2024 or early 2025.
Euro Manganese's wholly owned subsidiary, Mangan Chvaletice s.r.o, owns 100% of the Chvaletice Project.
Let's take a look at the news that could impact the Euro Manganese share price today.
Chvaletice Project update
According to Euro Manganese, the Chvaletice Project's definitive feasibility study will be completed by the first quarter of 2022.
The study will mean the company will be able to make a final investment decision and secure financing for the project.
However, Euro Manganese warned the project is facing risks from COVID-19 that could impact the company's ability to meet its upcoming targets.
The news follows the close of the second tranche of an oversubscribed $30 million placement, completed by Euro Manganese earlier this month.
Euro Manganese also announced it's still in discussions with customers for the project's high purity manganese products.
It states interest in the project's products is increasing as it's the only large manganese resource in the European Union.
Euro Manganese is still working to complete the Chvaletice Project's last Environmental and Social Impact Assessment. The assessment is also due to be finished in the first quarter of 2022.
The company has engaged with the Czech community and has support from the Czech Government. As a result, it believes none of the project's stakeholders house any critical concerns.
According to Euro Manganese, previous activities at the Chvaletice Project have contaminated the local ground water. The company says it plans to remove the pollutants and restore the site to "a more natural state". It hopes the Chvaletice Project will use only recycled, contaminated, and wastewater in its production process. Tests to find if the contaminated ground water could be a water source for the plant are planned.
Finally, the company has bought 97% of the equipment needed to build the Chvaletice Project's demonstration plant. It states the detailed designs for the plant are progressing well.
Commentary from management
Euro Manganese's CEO Marco Romero commented on the company's vision for the Chvaletice Project, saying:
For many prospective customers, the Chvaletice Manganese Project ticks all the boxes.
As a recycling project, we have the potential to be one of the world's greenest sources of high purity manganese, which will help auto makers and battery manufacturers meet the EU's increasingly stringent environmental standards. We expect to help the EU meet its decarbonisation goals, while cleaning up a longstanding source of water pollution and creating long-term local employment. There's no other [high purity manganese] production opportunity like this in the world.
Euro Manganese share price snapshot
In general, the Euro Manganese share price has been performing well on the ASX. Though, after a good start to 2021, it's been struggling in the past few months.
Currently, the Euro Manganese share price is up 8.14% year to date. But the price has fallen 47.16% since its 2021 high of 88 cents in mid-January.
Shares in Euro Manganese have also gained 481.25% since this time last year.
The company has a market capitalisation of around $117 million, with approximately 371 million shares outstanding.
