Giyani Metals has taken a major stride toward becoming a premier supplier of battery-grade manganese for the global electric vehicle (EV) and energy storage markets, following the release of a highly positive Definitive Feasibility Study (DFS) for its K.Hill project in Botswana.
The study confirms the technical and economic viability of the 100%-owned Kanye Basin project, outlining a robust 25-year mine life and paving the way for the declaration of mineral reserves.
Economically, K.Hill presents a compelling case. The project is forecast to generate a post-tax net present value (NPV) of US$481.5 million at an 8% discount rate, with an internal rate of return (IRR) of 20.3%. Over its lifespan, the mine is projected to deliver US$1.6 billion in net free cash flow while maintaining a strong operating margin of 46%.
The operation will focus on producing two critical materials for lithium-ion batteries: high-purity manganese sulphate monohydrate (HPMSM) and high-purity manganese oxide (HPMO). Life-of-mine production is forecast at approximately 1.5 million tonnes of HPMSM and 99,000 tonnes of HPMO. A demonstration plant in Johannesburg has already successfully produced both materials, proving Giyani’s technical readiness.
“These results demonstrate strong economic returns and endorse K.Hill as a unique, mine-to-market battery-grade supplier of manganese to meet growing Western demand,” said Nigel Robinson, Interim Executive Chair of Giyani. “It provides a solid foundation for further optimization and continued development of the Project.”
The timing of the DFS aligns with a critical shift in the global supply chain. Currently, China controls roughly 95% of the world’s battery-grade manganese production. However, with demand in North America and Europe expected to soar, the market is ripe for non-Chinese suppliers. The study forecasts that global demand will surge from 175,000 tonnes in 2025 to 800,000 tonnes by 2040, likely triggering a market deficit by 2029 that will support long-term pricing.
To meet this demand, K.Hill will utilize conventional open-pit mining and a hydrometallurgical processing facility capable of treating 220,000 tonnes of ore annually at an 87% recovery rate. Initial capital expenditure is estimated at US$535 million, with total life-of-mine capex projected at US$679 million.
Crucially, Giyani is integrating sustainability into the mine’s design. The operation will feature a 20 MW solar photovoltaic plant alongside grid power from the Botswana Power Corporation, significantly lowering its carbon footprint.
The project is backed by proven and probable mineral reserves of 5.35 million tonnes grading 12.0% manganese, with an additional 4.4 million tonnes of inferred resources offering the potential for future expansion. Construction is slated to begin in April 2027, with full production targeted for June 2029.
With the DFS now complete, Giyani will shift its focus to optimization studies, front-end engineering and design (FEED), securing strategic partnerships, and finalizing project financing.