Firebird Metals Ltd (ASX:FRB) has taken a decisive step in its development of manganese sulphate (MnSO4) and manganese tetra-oxide (Mn3O4) plant in China.

The company has this week signed a non-binding memorandum of understanding (MoU) with French multinational Eramet for manganese ore.

Eramet will supply 80,000 tonnes of manganese annually – and 20,000 tonnes quarterly – for Stage One of Firebird’s proposed operations at the plant. This is well beyond the required 66,000tpa set out in Firebird’s feasibility study, with the additional tonnage to act as a strategic buffer to mitigate potential disruptions.

The MoU comes after successful testing of a 200-kilogram sample of Eramet’s ore-producing battery-grade MnSO4 (high-purity manganese sulphate monohydrate) andmanganese tetraoxide (Mn3O4) – at Firebird’s Jinshi R&D centre.

The plan for Stage One is to produce 50,000tpa of battery grade MnSO4 and 10,000tpa Mn3O4 utilising third party ore.

For Stage Two, the company will be turning to its Oakover project in Western Australia, targeting expanded production of around 300,000tpa MnSO4 in China alongside 100,000tpa of battery-grade MnSO4 in Western markets.

“I am very pleased to announce that Firebird has entered into a MoU agreement with Eramet, a world-renowned supplier of manganese ore and a truly high-calibre partner,” Firebird managing director Peter Allen said.

“Securing this reliable and strategic supply of manganese ore marks a pivotal step in accelerating our journey to production and building a strong foundation for sustainablecash flow generation.”

Firebird last traded at 9.6 cents – a fall of 2.04% since the market opened.

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