ERG Ferroalloy-Gas Utilisation Plant to Boost Efficiency and Cut Emissions in Kazakhstan

ERG

Kazchrome to Convert Flared Gas Into Clean Power with 80MW Plant

Eurasian Resources Group (ERG) has announced plans to construct a new ferroalloy-gas utilisation plant, reinforcing its position in energy-efficient ferroalloy production. The 80MW facility, to be located within Kazchrome’s Aktobe Ferroalloy Plant, will convert 600,000m³ of flared gas into electricity. ERG signed an EPC contract with China Tianchen Engineering Corporation and expects to complete the $92 million project by 2026.

Power Self-Sufficiency and Cost Reduction Strategy

The ERG ferroalloy-gas utilisation plant will enable the company to increase self-generation capacity, reducing reliance on external power sources. As a result, Kazchrome’s operational costs will decline, improving its already industry-leading position in cost efficiency. The project also supports ERG’s carbon reduction goals by capturing and utilizing gas that would otherwise be flared.

Competitive Edge in the Global Ferrochrome Market

Kazchrome is already recognized for having the lowest production costs among ferrochrome suppliers to Europe. The addition of the ERG ferroalloy-gas utilisation plant will further enhance its cost advantage, making it difficult for competitors — particularly Indian producers — to match pricing. This strategic investment ensures ERG maintains long-term competitiveness while aligning with sustainability and energy efficiency targets.

The Metalnomist Commentary

The ERG ferroalloy-gas utilisation plant reflects a growing trend toward energy recovery in heavy industry. As environmental regulations tighten, ERG’s investment strengthens both its sustainability profile and cost leadership in global ferroalloy markets.

Fastmarkets Ferroalloys Asia 2025 Positions Bangkok as Key Global Hub for Ferroalloy Trade

Fastmarkets Ferroalloys Asia 2025

India, China, and South Korea Showcase Market Strength as Global Players Tackle Tariffs and Sustainability Goals

The Fastmarkets Ferroalloys Asia Conference 2025 concluded in Bangkok with more than 800 global industry professionals in attendance. Held from April 8–10, this flagship event solidified its role as Asia’s largest ferroalloy trading platform, focusing on trade flows, tariffs, sustainability, and supply chain strategies.

This year’s conference drew key stakeholders from across the ferroalloy value chain. Attendees participated in active deal-making, high-level panels, and targeted networking—further reinforcing Asia’s position as the world’s dominant ferroalloy market.

Indian and Chinese Firms Expand Regional Influence Amid Tariff Pressures

Ferroalloy giants from India and China made a strong statement at the event. Companies such as BFCL, INDIANO, MORTX, BERRY ALLOYS, MTALX, and CCMA attended as sponsors. Their presence underlined a strategic shift to deepen market penetration in Asia while mitigating challenges from recent U.S. tariff policies.

By sponsoring the event, these companies emphasized regional alliances and adaptability to global trade shifts. With India and China playing leading roles in global ferroalloy production and exports, their efforts at Fastmarkets Asia 2025 signal a robust push for market resilience and growth.

Producing Ferro-Titanium in Korea

South Korea’s Dong-A Special Metal stood out by announcing its expansion in Ferro-Titanium and Ferro-Titanium Powder production. The company uses eco-friendly pretreatment methods to manufacture high-quality products, gaining attention as one of Korea’s few domestic Ferro-Titanium producers.

This development strengthens Korea’s presence in specialty ferroalloys and aligns with rising global demand for lightweight, corrosion-resistant alloys in aerospace and defense sectors.

Focus on Asia’s Role in a Changing Global Alloy Market

The conference underscored Asia’s growing dominance in ferroalloys, especially through China and India. Fastmarkets emphasized this trend, with expert panels addressing topics like supply chain optimization, carbon reduction, and long-term demand outlook. As trade dynamics evolve, Asia is becoming the central pivot for pricing and policy trends in the ferroalloy industry.

TheMetalnomist continues to track how international conferences like these shape global metal market strategies and investment priorities.

Beneath the Growth: Ferro-Titanium(Fe-Ti) Market Enters Cooling Phase in 2025

Ferro-Titanium

Once a core beneficiary of aerospace and specialty steel demand, ferro-titanium now faces dual pressure from weakening demand and excess supply.

At the Foundation of Steel, Cracks Begin to Show

As of September 2025, leading market analysts still forecast a 4–5% annual growth rate for the ferro-titanium market, citing robust demand in aerospace, high-performance steels, and defense-grade alloys. But on the ground, reality paints a more sobering picture.

The global steel industry is struggling. A perfect storm of China’s low-cost exports, persistent weakness in downstream sectors, and U.S. tariff uncertainties has significantly dented confidence. Particularly hard hit are the automotive, shipbuilding, and plant engineering sectors, leading to a sharp decline in ferro-titanium consumption.

The result: a continued slide in spot prices, leaving suppliers grappling with margin pressure and inventory overhang.

Dual Shock: Demand Contraction Meets Supply Glut

Ferro-titanium is a specialty ferroalloy additive used in steelmaking to remove oxygen and nitrogen impurities, refine grain structure, and enhance both strength and corrosion resistance. It is indispensable in the production of titanium alloys for aerospace, stainless steels, and corrosion-resistant superalloys.

However, softening demand is now converging with a surge in cheap ilmenite and rutile feedstock imports, the ramp-up of new smelting capacity, and rising inventories, triggering a classic oversupply scenario. Some traders have resorted to panic selling, driving spot prices below long-term contract levels.

Not All Ferroalloys Are Created Equal

This downturn is not symptomatic of the entire ferroalloy market. While ferro-molybdenum (FeMo) prices are also under pressure due to steel sector weakness, the ferro-vanadium (FeV) market remains relatively buoyant—buoyed by growing demand for high-strength steel and new applications in energy storage technologies (e.g., vanadium redox flow batteries).

This divergence underscores a key truth:

Ferroalloy markets live or die by the uniqueness of their end-use demand.

Products that rely solely on steel cycles are inherently more volatile. In contrast, those with diverse, high-value downstream applications offer resilience—and in some cases, opportunity.

Long-Term Vision Intact, But Short-Term Survival Comes First

Industry experts agree:

"A meaningful rebound in ferro-titanium prices is unlikely until inventories normalize and downstream sectors recover."

Yet the long-term fundamentals remain intact. Demand from aerospace, defense-related high-performance steels, urban air mobility (UAM), and electric vehicles continues to build. Today’s correction may in fact be a strategic inflection point.

For producers with technological capabilities and diversified market access, this downturn could be a launchpad for future leadership. Moreover, as environmental regulations tighten, ferro-titanium producers with recycling-based production systems may gain a structural edge. In the long run, quality will matter more than quantity.

After all, ferro-titanium is essential for manufacturing materials that must not fail—only the strongest will do.

The Metalnomist Commentary

“This is not chaos. It is purification. Only the technologically armed will dominate the next cycle.”

The ferro-titanium market is undergoing a painful but necessary correction. But there is method in the madness. Suppliers rooted in high-value end markets, with a reputation for premium quality and the ability to serve global niches, will emerge as the next leaders.

This is a time for endurance. And in metals, quality is always the final destination.

DongA Special Metal Begins Mass Production of High-Purity Ferro-Titanium

DongA Special Metal - Fe-Ti(Ferro-Titanium)

Korean firm pioneers domestic supply of advanced ferroalloy using titanium scrap and sustainable refining technology

Strategic Entry into the Ferroalloy Market

DongA Special Metal, a South Korean metallurgy company, has launched commercial-scale production of high-purity, high-quality ferro-titanium, marking a strategic entry into the global ferroalloy market. Ferro-titanium — an alloy of iron and titanium — is a vital material in steelmaking, where it serves as a powerful deoxidizer and cleanser, especially for high-grade steels, stainless steel, and special alloys. Despite growing demand, Asia has long relied on imports from Japan and China, with no domestic mass-production capacity — until now.

Closed-Loop Scrap Recycling and Custom Alloy Precision

DongA’s breakthrough lies in its ability to produce ferro-titanium using recycled industrial titanium scrap, implementing a proprietary refining process that ensures strict impurity control and customizable titanium content. The firm’s production allows titanium content to be adjusted between 30–75%, with tailored particle sizes and distribution, offering superior quality consistency over traditional suppliers. “The key differentiator is stable quality with adaptable specs. That’s our competitive edge,” said Vice President Jae-Ie Jang in an interview with The Metalnomist.

Powder-Grade Product for Core Wire Export

Beyond ingot forms, DongA also produces ferro-titanium powder for cored wire applications, used to inject precise Ti content into molten steel. Due to stringent quality requirements in powder metallurgy, any inconsistencies would render the material unusable — yet DongA's product has earned international recognition and is now being exported abroad. In applications like aerospace, defense, and high-temperature industrial components, ferro-titanium ensures both performance and durability under extreme conditions.

From Domestic Substitution to Industrial Security

By securing ISO quality and environmental certifications, DongA aims to align its products with global standards, reinforcing Korea’s self-sufficiency in strategic materials. Amid increasing global supply chain risks — including recent tariff tensions led by the Trump administration — the localization of key inputs like ferro-titanium is emerging as a national competitiveness issue. DongA’s model of resource circulation and material independence could soon become a blueprint for Korea’s broader industrial resilience.

The Metalnomist Commentary

DongA Special Metal's entry into the ferro-titanium space is more than market diversification — it's a national-level materials strategy. With advanced purification technology, recycling innovation, and precision metallurgy, the firm not only reduces reliance on imports but also sets the stage for Korean alloys to lead in critical sectors like aerospace, defense, and next-gen steelmaking.

Indonesia Nickel Export Rule Creates New Uncertainty for Global Supply

Indonesia Nickel mining

Indonesia nickel export rule changes have created fresh uncertainty in the nickel market as Jakarta moves to centralise key commodity exports through state-owned enterprises. Market participants are now waiting for clearer details on scope, pricing and implementation.

Indonesia nickel export rule plans were announced by president Prabowo Subianto on 20 May. The policy will require exports of key commodities to be routed through a state-owned enterprise, or BUMN, which would act as the sole counterparty to overseas buyers.

Indonesia nickel export rule uncertainty matters because the country is the world’s dominant nickel producer, accounting for more than 60% of global supply. Most of that output is nickel pig iron, a ferroalloy used mainly in stainless steelmaking.

The policy will initially target palm oil, coal and ferrous alloys. Nickel pig iron is expected to fall under the rule because it is a ferroalloy, although other nickel products have not yet been explicitly included.

Nickel Pig Iron Trade Faces Centralisation Risk

Nickel pig iron is central to Indonesia’s nickel position. It is a lower-cost nickel-bearing feedstock for stainless steel production, but it cannot be used directly in batteries.

To enter the battery chain, NPI must first be converted into nickel matte and then processed further into nickel sulphate for cathode manufacturing. This means any disruption to NPI flows can affect stainless steel first, but may also influence battery-related nickel routes over time.

Indonesia has already used centralised systems for other commodities. Tin exports must be traded through official domestic exchanges, such as ICDX or JFX.

The new system would go further by placing a state-owned enterprise at the centre of export contracts, transactions and payment flows. From June to August, exporters are expected to gradually transfer these functions to BUMN. From September, all export transactions are expected to move fully through the state-owned structure.

Market participants are sceptical about the timeline. Many believe implementation from 1 June is too early because the policy still appears under preparation.

The lack of broad industry consultation has also increased concern. Traders say Jakarta consulted only a limited number of stakeholders before announcing the policy, contributing to confusion and weak market confidence.

Pricing and Product Scope Remain Unclear

The main uncertainty is scope. Ferroalloys are expected to be covered, but other nickel products have not been clearly defined. Many participants expect the policy to eventually expand across more nickel products.

Pricing is another major question. Buyers and sellers do not yet know whether export prices will be set by BUMN or negotiated commercially between counterparties.

A separate pricing framework may be introduced, but details are still missing. This matters because Indonesia’s nickel market already faces policy-driven cost changes, including ore pricing formula updates and royalty uncertainty.

The new export rule could tighten supply conditions if it slows contracting, complicates payments or reduces flexibility for private exporters. Even if physical output remains unchanged, transaction friction can affect availability.

The market reaction has so far been cautious rather than dramatic. Indonesia’s Jakarta Composite Index fell, while LME nickel showed only limited movement after the announcement.

However, the longer-term implication is more significant. Indonesia is moving toward stronger state control over strategic natural resource flows.

For nickel buyers, this means procurement risk is no longer only about mine quotas, ore grades or processing costs. It now includes export governance, state counterparty risk and policy timing.

The Metalnomist Commentary

Indonesia is turning nickel from a commodity export into a managed strategic resource. The rule may support state control, but poor implementation could disrupt the very downstream supply chain Jakarta has worked so hard to build.

China Calcium-Silicon Production Restarts as Ningxia Shuntai Responds to Higher Prices

Ningxia Shuntai

China calcium-silicon production has started to recover after Ningxia Shuntai resumed output following several months of equipment maintenance. The company restarted production as calcium-silicon prices rebounded in early March, supported by lower inventories and renewed restocking from steel mills and cored-wire producers.

Ningxia Shuntai had started maintenance on 10 October 2025 because weak demand and thin margins made continued production less attractive. The restart shows how quickly ferroalloy producers can respond when prices improve and downstream buyers return to the market.

China calcium-silicon production remains constrained overall, despite Shuntai’s return. Output from the country’s six major alloy smelters is still expected to fall in January-March because several producers remain offline or under maintenance.

Higher Prices Encourage Shuntai to Resume Ferroalloy Output

Ningxia Shuntai restarted calcium-silicon production after market conditions improved in early March. Falling inventories helped lift prices, while downstream steel mills and cored-wire producers increased procurement.

Calcium-silicon is used in steelmaking as a deoxidizer, desulfurizer and inclusion modifier. It is also used in cored wire applications, making demand closely tied to steel production, alloy treatment and foundry activity.

The restart suggests that current price levels are now more workable for Shuntai. However, the broader market remains sensitive to margins because calcium-silicon production depends on electricity costs, raw material prices and downstream steel demand.

Production Suspensions Keep China’s Calcium-Silicon Supply Tight

China calcium-silicon production from the six major domestic smelters — Shenghua, Ketong, Shuntai, Shenyu, Yongfeng and Jiamin — is expected to reach 18,200t in January-March. That would be down 16% from 21,700t a year earlier.

The decline reflects production suspensions and maintenance at several producers. Inner Mongolia Shenyu Ferroalloys began maintenance on 1 March and is expected to cut output by about 2,600t before work ends on 1 May.

Jiamin Ferroalloys has remained offline since an explosion on 8 January 2023. Shaanxi Fugu Yongfeng Ferroalloys has also been offline since 30 April 2024 because of high spot inventories and weak margins.

These supply constraints could support prices if steel mill restocking continues. But if demand weakens again, producers may remain cautious about ramping output aggressively.

The Metalnomist Commentary

Shuntai’s restart shows that China’s calcium-silicon market is still driven by short-cycle margin decisions. The key question is whether steel mill restocking reflects real demand recovery or only inventory rebuilding after a period of tight supply.

Moil Achieves Record Manganese Ore Output in FY2024-25

Moil

India's State Miner Sees Steady Growth in Output and Sales

India's state-run Manganese Ore India Ltd (Moil) recorded its highest-ever manganese ore production in fiscal year 2024–25. The company reported 1.8 million tonnes of output, up 2.7% year-on-year, and sales of 1.58 million tonnes, marking a 3.3% annual growth.

Moil’s ability to increase production despite global ore cost pressures and sluggish market sentiment underscores its operational efficiency. This performance strengthens Moil’s position as a critical domestic supplier, covering nearly 50% of India's manganese ore demand.

Ferro-Manganese Output Rises Despite Global Headwinds

In addition to ore production, Moil also boosted ferro-manganese output to 12,000 tonnes, an 18% increase compared to the prior year. This uptick comes amid a challenging global environment, with ore prices climbing due to supply tightness from major producers like South Africa and Australia.

Meanwhile, India’s reliance on imports for the other half of its manganese ore demand adds pressure on pricing stability and supply diversification strategies. Moil’s sustained growth in both raw ore and ferro-alloy production signals a resilient position in India’s steel and alloy value chain.

Strategic Importance to India’s Steel Sector

Manganese is essential for steel production, and Moil’s record output directly supports India’s ambitions for infrastructure growth and self-reliance. As domestic demand for manganese alloys and specialty steels grows, Moil’s continued investment in output expansion will be crucial.

India’s push to reduce dependency on imports aligns with Moil’s upward production trend, helping to insulate the country from global price volatility. Looking ahead, the company’s ability to maintain scale and efficiency will shape its competitiveness in a tight global market.

The Metalnomist Commentary

Moil's production record is a quiet but critical milestone in India's industrial ambitions. With ferroalloy demand rising and global manganese supply tightening, India’s partial self-sufficiency via Moil becomes more than just economic strategy—it’s geopolitical insulation. The next step? Scaling sustainably while navigating price and policy turbulence.

US Ferro-Silicon Case Sparks Multiple Appeals

Ferro-Silicon

Domestic Producers and Malaysian Exporters Contest Trade Rulings

US ferro-silicon producers have formally appealed the US Commerce Department’s final determinations on imports from Malaysia, launching proceedings with the US Court of International Trade (USCIT). Attorneys for Ferroglobe’s US unit and CC Metals & Alloys filed a summons on 20 June, following Commerce’s March ruling that Malaysian ferro-silicon was sold at less-than-fair value. The US International Trade Commission (USITC) upheld the decision in May, supporting anti-dumping (AD) and countervailing duty (CVD) measures.

At the same time, Commerce and the USITC ruled that “critical circumstances” did not apply, meaning Malaysian shipments during the investigation were exempt from retroactive duties. Producers have 30 days from filing to detail grievances, potentially targeting either the duty rates or the negative finding on critical circumstances.

Malaysian Producers Challenge CVD Rates

Meanwhile, Malaysian producer OM Materials has also appealed, contesting the CVD rate set by Commerce. OM’s final AD and deposit rates were adjusted to 5.10pc and 4.66pc, with a CVD rate of 2.78pc. Pertama Ferroalloys, another Malaysian producer, faced significantly higher penalties of 42.88pc for AD and 42.60pc for deposits, along with a 3.48pc CVD rate.

From May-August 2024, Malaysia supplied 11,532 metric tonnes of ferro-silicon, about 17pc of total US imports. Since then, shipments from Malaysia have stopped, according to Commerce data through April.

The Metalnomist Commentary

These appeals highlight the growing tension in ferro-silicon trade, where both US producers and Malaysian exporters are contesting outcomes. While domestic firms seek stronger protection, exporters aim to reduce penalties. The USCIT’s eventual rulings could shape future ferroalloy trade flows and influence supply stability in the US market.

PCC Bakki Silicon Reduces Losses in Second Quarter Despite Challenging Market Conditions

PCC Bakki Silicon, Iceland's prominent silicon producer, reported improved sales in the second quarter of this year, compared to both the previous quarter and the same period last year. However, the company continues to grapple with financial losses due to challenging economic conditions in the European Union and increasing competition from Chinese manufacturers. Despite these obstacles, the company managed to reduce its losses through strategic cost improvements.

Sales for the silicon and derivatives segment of the PCC Group, with PCC Bakki Silicon as the main affiliate, reached €22.8 million in the April-June period, a significant increase from €15.5 million in the same period last year and €21.2 million in the first quarter of 2024. For the first half of the year, sales totaled €44 million, remaining largely unchanged compared to the same period in 2023.

Earnings before interest, taxes, depreciation, and amortization (Ebitda) recorded a loss of €6.6 million in the second quarter, showing an improvement from a loss of €11.5 million in the same period last year and €10.3 million in the first quarter.

PCC Bakki Silicon operated two furnaces during the first half of the year, enhancing its cost structure despite a temporary operational limitation in May due to a power shortage imposed by the electricity supplier. The company is focusing on the production of high-purity silicon grades such as 3-3-0-3 and 2-2-0-2, which command higher premiums and face less competition from non-EU producers compared to the more common grades like 5-5-3 and 4-4-1.

Meanwhile, PCC Silicium, a Polish subsidiary within the same silicon and derivatives segment, reported positive operating profits, driven by increased quartzite shipments to Iceland and stronger sales to the ferroalloy industry.

Metallised manganese pellets deal links GMnT and Scandinavian Steel

Manganese

Green Manganese Technologies signed a preliminary distribution deal with Scandinavian Steel for metallised manganese pellets. The agreement targets European steel buyers seeking stable inputs. Meanwhile, GMnT advances hydrometallurgical processing to make high-purity manganese from ores and industrial waste.

The companies plan a phased route to market. First, Scandinavian Steel will connect GMnT with European users for testing and qualification. As a result, buyers can validate metallised manganese pellets under real industrial conditions.

Once production scales, Scandinavian Steel will purchase up to 50,000 tonnes per year for exclusive European distribution. That volume could equal 5–6% of European Union manganese-based ferroalloy import demand. Therefore, the metallised manganese pellets plan signals a meaningful new supply option for the region.

China’s dominance keeps manganese metal markets exposed

Global manganese metal supply remains concentrated in China. This concentration links international availability to domestic demand shifts. Recently, a major Chinese buyer absorbed a large share of annual supply, tightening exports and lifting prices.

That volatility increases procurement risk for steel and battery materials. However, European buyers still need manganese units for alloying performance. As a result, traders and mills now prioritize diversification and contract visibility.

Decentralised manganese production could strengthen steel security

GMnT positions its technology as a decentralised alternative that uses domestic feedstocks, including waste streams. This approach could reduce exposure to shipping disruption and policy shocks. It could also support circular-economy goals in steelmaking.

Scandinavian Steel expects the model to help buyers manage geopolitical risk, said trading head Erik Eriksson. Meanwhile, product qualification will determine adoption speed and contract volumes. Therefore, the next milestone is performance validation that meets European metallurgical standards.

The Metalnomist Commentary

This deal highlights how “midstream innovation” now drives critical mineral resilience. However, scale-up and qualification will decide whether Europe treats manganese metal as strategic. Therefore, watch for long-term offtake structures and financing once pilot users convert.

Yildirim Group Announces Major Restructuring, Launches CoreX Metals & Mining

Yildirim Group

New Beginnings for a Metals Giant

Turkey’s Yildirim Group, a significant player in the ferro-alloy industry, has embarked on a significant restructuring by splitting into two independent entities. The move follows the departure of Robert Yuksel Yildirim, who will now head CoreX Metals & Mining, a newly formed company under CoreX Holding BV, based in Amsterdam. This new company, solely owned by Yildirim, aims to intensify focus on the global metals and mining market, reflecting a strategic shift to expand and enhance its core business operations.

Implications for Existing Operations

As part of the restructuring, Eti Krom, a well-known ferro-chrome producer, will no longer be associated with CoreX Metals & Mining. However, other key assets including Vargon Alloys in Sweden, Tikhvin Ferroalloy in Russia, AlbChrome in Albania, Voskhod Chrome in Kazakhstan, American Chrome & Chemicals in the US, and Polymetcore Trading in Switzerland will fall under CoreX Metals & Mining’s umbrella. Polymetcore Trading is set to retain exclusive marketing rights for the products of these companies, ensuring continuity in sales and distribution channels.

Future Directions and Global Aspirations

This organizational change underscores Yildirim Group's commitment to leveraging its expertise and resources to make a more pronounced impact on the global stage. By concentrating on their core competencies in metals and mining, CoreX Metals & Mining is poised to achieve substantial growth and enhance its competitive edge in the international market.

AMG Lithium First Quarter Results Reflect Weak Prices, But Strategic Progress Continues

AMG Lithium

Lithium Concentrate Sales Drop Amid Pricing Pressure

AMG Lithium's first quarter results revealed a 22% drop in lithium concentrate sales, driven by end-2024 shipments and production testing. The Brazilian spodumene operation sold 12,167t in Q1 2025, compared to higher volumes a year earlier. The lithium unit also faced falling market prices, pushing Q1 revenue down 23% to $32mn.

Battery-Grade Production Begins in Germany

Despite revenue pressure, AMG Lithium achieved its first battery-grade lithium hydroxide output in Bitterfeld, Germany. While the firm has not yet disclosed a firm commercialization date, it confirmed that the product will soon enter the market. Meanwhile, AMG announced that its Portugal project is expected to begin lithium concentrate production by H1 2027 — marking a significant expansion step.

Parent Company Shows Strong Overall Growth

AMG Critical Materials, the parent company, posted Q1 revenue of $388mn, up 8% year-over-year. Gross profit rose by 56% to $82.6mn, fueled by stronger performance in vanadium, tantalum, and ferroalloy segments. Despite the AMG Lithium first quarter results showing weakness, the group’s broader material portfolio provided a strong financial cushion.

The Metalnomist Commentary

AMG Lithium’s Q1 slump reflects broader volatility in global lithium markets. However, the company’s move into battery-grade hydroxide and its planned Portugal expansion demonstrate long-term strategic alignment with Europe’s energy transition goals.

South32 Gemco Manganese Exports Resume After Cyclone Megan Recovery

South32

South32 Gemco manganese exports restarted as the Australian metal producer shipped its first ore cargo since early 2024 from the Northern Territory mine. The South32 Gemco manganese exports resumption follows extensive recovery operations after Cyclone Megan damaged the export wharf and flooded mine areas in March 2024, forcing a four-month suspension that disrupted global manganese supply chains and affected key customers including GFG Alliance's Tasmania ferromanganese plant.

Production Recovery Targets Pre-Cyclone Output Levels

South32 Gemco manganese exports began with the loading of 56,606 tonnes aboard the Singapore-flagged Stenia Colossus on May 19th, bound for Tianjin, China according to marine analytics firm Kpler. A second shipment of 54,078 tonnes will depart on the Panamanian-flagged Loch Crinan on May 28th, demonstrating operational momentum recovery. These initial shipments mark the end of a 15-month export hiatus that severely impacted Australian manganese supply to Asian steel markets.

Meanwhile, South32 plans production ramping at Gemco's 6 million tonne annual nameplate capacity facility throughout the 2025-26 financial year. The company achieved 5.9 million tonnes production in 2022-23, the last complete year before Cyclone Megan disrupted operations. Northern Territory government projections indicate 5 million tonnes expected production over the coming year, though South32 has not released official 2025-26 guidance.

Customer Supply Chain Disruptions Highlight Market Dependencies

However, the extended Gemco shutdown created severe supply chain disruptions for downstream customers dependent on Australian manganese ore. GFG Alliance's Liberty Bell Bay ferromanganese plant in Tasmania moved to limited operations on May 19th due to manganese ore supply shortages. This operational reduction demonstrates the critical importance of Gemco's production for regional ferromanganese manufacturing capabilities.

Therefore, the export resumption addresses urgent supply needs across Asia-Pacific steel and ferroalloy markets that experienced significant manganese ore shortages during Gemco's closure. Chinese steel mills particularly depend on Australian manganese imports for steel production, making Gemco's recovery essential for regional supply chain stability. The mine's strategic location in Northern Territory provides efficient shipping access to major Asian industrial centers.

Infrastructure Recovery Enables Full Operational Restart

Furthermore, South32 completed extensive infrastructure repairs including export wharf reconstruction and comprehensive mine dewatering operations during January-March 2025. These recovery investments ensure sustainable long-term operations while improving resilience against future extreme weather events. The company's commitment to full production restoration demonstrates confidence in manganese market fundamentals and customer demand recovery.

As a result, Gemco's operational restart strengthens Australia's position as a critical manganese supplier to global steel industries while reducing supply chain vulnerabilities exposed during the extended shutdown. The successful recovery operations establish operational precedents for managing extreme weather impacts on mining infrastructure. Market participants welcome the supply restoration as global steel production continues recovering from pandemic-related disruptions.

The Metalnomist Commentary

The resumption of South32's Gemco manganese exports illustrates both the vulnerability of critical mineral supply chains to extreme weather events and the interconnected nature of global steel production networks. The 15-month disruption's impact on downstream ferromanganese producers like Liberty Bell Bay demonstrates how single-mine shutdowns can cascade through entire industrial sectors, highlighting the need for greater supply chain diversification and resilience planning in critical minerals markets.