Elcora, Gold Lion launches mining of manganese in Morocco
Elcora, Canadian mining company and mineral exploration company, Gold Lion have launched the development and exploration of a manganese mine in Morocco.
The two inked a Letter of Intent (LOI) for the project which is essential in the manufacturing of car batteries for electric vehicles, as well as iron and stainless steel production. Ermazon, an entirely-owned subsidiary of Elcora, holds the manganese research mining license in Morocco. The subsidiary has applied for the exploitation license of the manganese concession, which will strengthen its ongoing strategy to supply battery and electric vehicles (EV) end-users.
Elcora highlighted manganese’s important role in the production of battery-powered products, explaining that it is an essential component in producing batteries for electric vehicles and other renewable energy applications, including electricity grid storage batteries.
Strategy
“Manganese’s status as a battery metal is expected to propel its demand in the wake of what experts predict will be a widespread transition to EVs [electric vehicles] driven by lofty climate policy goals and zero-emission targets,” said Elcora.
On their part, Gold Lion said the initiative will reinforce Gold Lion’s ongoing strategy to meet the growing demand for battery metals. The outcome of the mine’s development and exploration project will determine whether future mining operations will take place underground or in open pits.
Elcora noted that once the exploitation license has been obtained, Gold Lion will acquire a 50% interest in the property, while Elcora will begin ore production on the manganese concession using the proceeds from the sale.
“We will make use of the infrastructure, facilities, and up to 600 tonnes of raw ore ready for processing, all of which are available at the manganese site. The latter is a former French mine that was in operation for years. We also forecast that the manganese battery supply chain is set to witness the strongest growth through 2030. Manganese sulfate prices are expected to keep rising over the next decade,” said Eclora.
