The Australian Government is backing the expansion of a key critical minerals project in Western Australia, with the Northern Australia Infrastructure Facility (NAIF) committing up to $50 million to support the growth of the Butcherbird manganese operation.
The funding will assist Perth-based Element 25 in tripling its manganese concentrate production to 1.1 million tonnes per year, as revealed in a media release.
According to the government, this expansion is expected to contribute approximately $909 million to the Pilbara’s Gross Regional Product and generate about 380 jobs over the mine’s 18-year lifespan, including 150 construction roles and 230 operational positions.
Manganese, listed on the Australian Government’s Critical Minerals List, is vital for steelmaking and emerging battery technologies.
As part of the government’s Critical Minerals Strategy, the NAIF has allocated $500 million to accelerate the development of such strategic projects.
The Butcherbird initiative is the latest to receive funding under this framework, which supports infrastructure that strengthens supply chains in northern Australia.
The project will also aim to deliver local and Indigenous employment outcomes, with Element 25 committing to recruit a minimum of 10 per cent of its workforce from Indigenous communities and 5 per cent from the Pilbara region.
Minister for Resources and Northern Australia, Madeleine King, said the investment would further cement the Pilbara’s role in the nation’s economic engine room.
“This project is creating jobs, driving the economy of the Pilbara, and delivering outcomes for First Nations Australians,” Minister King said.
To date, the NAIF has invested $4.4 billion across 32 projects in northern Australia. Other critical minerals projects currently under consideration span a range of materials including rare earths, vanadium, lithium hydroxide, high-purity alumina, and silicon.
The finalisation of the loan to Element 25 is subject to standard financing conditions and required government approvals.
