While the project moves closer to construction with upgraded reserves, the sharper economics reflect a sector-wide recalibration in battery metals, where inflation in development costs, constrained capital markets and shifting demand expectations are reshaping valuation benchmarks across Africa’s mining pipeline. The updated study reinforces the structural tension in battery metals development, where long-term strategic demand for manganese in electric vehicle supply chains is colliding with near-term pressures on capital efficiency, project scale and investor return thresholds.
A feasibility study for Giyani Metals’ K. Hill manganese project in Botswana outlines a materially higher capital requirement and weaker economics compared with earlier estimates, even as the asset moves into a more defined reserve-backed development phase.
The study assigns a post-tax net present value of $481.5 million at an 8% discount rate, roughly half the valuation in the company’s 2023 preliminary economic assessment. The downgrade reflects higher capital intensity, reduced production forecasts and a shorter mine life.
Initial capital expenditure has increased 88% to $535 million. The internal rate of return has declined by nine percentage points to 20%. Forecast manganese production has been reduced by 57% to 1.5 million tonnes, while mine life has been cut by more than half to 25 years. The K. Hill deposit is located about 60 km southwest of Gaborone.
“These results… endorse K. Hill as a unique, mine to-market battery-grade supplier of manganese to meet growing Western demand, and provide a solid foundation for further optimization and continued development of the project,” Giyani’s interim executive chair Nigel Robinson said in a release.
“Building on the successful production of both high-purity manganese oxide (HPMO) and high-purity manganese sulphate monohydrate (HPMSM) from our demonstration plant in Johannesburg, we are now well-positioned to meet the evolving requirements of the battery and energy storage markets.”
Manganese is a key input in steelmaking and is increasingly used in battery-grade chemical form, particularly high-purity manganese sulphate monohydrate for electric vehicle supply chains. Global production is concentrated in South Africa, Australia and Gabon, while China dominates downstream refining of battery-grade manganese. Western production remains limited outside Australia and Brazil.
Giyani Metals shares rose 5% in Toronto on Thursday morning, giving the company a market capitalization of $24 million.
The feasibility study also upgrades geological confidence relative to the 2023 assessment. It estimates proven and probable reserves of 5.3 million tonnes grading 12% manganese oxide, containing about 642,000 tonnes of metal.
Despite weaker economics, the project timeline is unchanged. The study indicates construction could begin in early 2027, with commissioning expected in late 2028 and ramp-up of the processing plant in 2029.
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Faustine Ngila is the AI Editor at Impact Newswire, based in Nairobi, Kenya. He is an award-winning journalist specializing in artificial intelligence, blockchain, and emerging technologies.
He previously worked as a global technology reporter at Quartz in New York and Digital Frontier in London, where he covered innovation, startups, and the global digital economy.
With years of experience reporting on cutting-edge technologies, Faustine focuses on AI developments, industry trends, and the impact of technology on society.
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