Muchai Mining Kenya Signs Long-Term Manganese Ore Supply Deal with Baosteel

Baosteel

Kenya’s Kilifi plant to supply Baowu subsidiary with up to 20,000 wmt/month of manganese ore by 2026.

Muchai Mining Kenya (MMK), a subsidiary of Marula Mining, has secured a major supply contract with Baosteel Resources South Africa, part of the Baowu Special Steel group. The agreement grants Baosteel exclusive rights to market MMK’s manganese ore from the Kilifi processing plant in Kenya’s Tezo area.

The Kilifi plant currently produces around 120,000 tonnes per year of manganese ore. The new contract began on 1 March 2025 and will run for an initial five-year term. The first delivery, totaling 5,000 tonnes of 35–40% grade ore, is scheduled for completion by 30 April 2025.

Kenyan Manganese Enters Chinese Steel Supply Chain

From May 2025, MMK will supply a minimum of 10,000 tonnes per month for 12 months. This volume will increase to approximately 15,000 wet metric tonnes (wmt) per month in April 2026, then rise further to 20,000 wmt/month from May 2026 for a full year.

Each shipment will be structured under independent sale and purchase contracts, and pricing will follow cost, insurance, and freight (CIF) China terms, adjusted for ore grade and quality.

This agreement strengthens China's manganese ore supply chain amid growing demand from its specialty steel sector, while offering MMK a stable export route backed by a globally recognized partner.

Strategic Win for Kenya’s Mining Sector

The deal marks a significant step for Kenya’s emerging mineral economy, positioning Kilifi as a key node in the global manganese trade. With rising steel demand and the strategic role of manganese in battery and alloy production, MMK’s partnership with Baosteel highlights the growing integration of African mining assets into the Asia-Pacific metals ecosystem.