Summary:Element 25 appoints Regroup for integrated mining and haulage contracts at Butcherbird manganese expansion, deploying autonomous trucks in WA Pilbara...

Element 25 Ltd (ASX: E25), a leading Australian manganese developer, has officially appointed Regroup Australia Pty Ltd as the exclusive mining and haulage contractor for its flagship Butcherbird Manganese Expansion Project (BBX) in Western Australia’s Pilbara region. The long-term integrated contracts cover open-pit mining, ore extraction, waste removal, and end-to-end haulage from mine to Port Hedland’s Utah Point, marking a critical de-risking milestone for the $84 million expansion. With Regroup’s proven Pilbara expertise and autonomous fleet readiness, the partnership positions Butcherbird to become one of the world’s lowest-cost manganese operations by 2027.

Project & Contract Scope

The Butcherbird Manganese Project is Element 25’s 100%-owned flagship asset, located 120km south of Newman in WA’s Pilbara—Australia’s largest onshore manganese resource. The BBX expansion will boost production from 360ktpa to 1.1Mtpa of high-grade manganese concentrate, supporting an 18+ year mine life and feeding both steel markets and Element 25’s planned US battery-grade manganese sulfate (HPMSM) plant.

Table 1: Butcherbird Expansion – Regroup Contract Key Details

The integrated agreement eliminates interface risks between mining and logistics, with Regroup delivering a full pit-to-port solution. The contract structure includes monthly floor pricing for mining services and scalable take-or-pay haulage terms, ensuring cost predictability and performance accountability.

Regroup’s Capability & Autonomous Fleet Advantage

Regroup is a Pilbara-based mining services specialist with a track record in large-scale open-pit operations and haulage logistics. Its appointment builds on a successful existing relationship with Element 25, bringing on-the-ground expertise critical for Pilbara’s remote, harsh operating environment.

A standout feature is Regroup’s plan to deploy the world’s first Scania autonomous mining fleet at Butcherbird, comprising 11 G 560 8x4 tippers and a battery-electric autonomous water truckregroup.com.au. Scheduled for 2025, this technology will deliver:

• 20–25% lower fuel costs and reduced carbon emissions

• Enhanced safety via real-time fleet monitoring and collision avoidance

• Higher productivity with 24/7 autonomous operationsregroup.com.au

Strategic Significance for Element 25

Securing Regroup as the turnkey contractor addresses two critical risks for the BBX expansion: operational execution and supply chain reliability. The appointment follows key project milestones, including a 2025 feasibility study (96% IRR, AU$561M NPV) and a $50 million NAIF debt facility, solidifying Butcherbird’s status as a high-margin, low-cost manganese asset.

For Element 25, the partnership accelerates the expansion timeline, with construction set to begin in late 2026 and first production targeted for 2027. The integrated model aligns with the company’s pit-to-port business intelligence framework, delivering full supply chain transparency and operational efficiency.

Conclusion

Element 25’s appointment of Regroup for Butcherbird’s mining and haulage contracts is a transformative step forward for the BBX expansion. By combining Regroup’s Pilbara expertise, integrated logistics, and cutting-edge autonomous fleet technology, Element 25 de-risks its flagship project while positioning Butcherbird to lead the global low-cost manganese market. As the energy transition drives demand for battery-grade manganese, this partnership ensures Element 25 can reliably scale production, underpinning long-term growth and competitiveness in the critical minerals sector.