India exports first low-grade manganese ore as Moil opens new trade channel

Manganese Ore

India exports first low-grade manganese ore as state-owned miner Moil ships its first cargo to Indonesia. The move, where India exports first low-grade manganese ore under a new State Trading Enterprise mandate, highlights New Delhi’s push to monetise surplus low-grade Mn fines. As India exports first low-grade manganese ore, it also signals a more active role in seaborne minerals markets.

Moil leads India’s first low-grade manganese ore export

Moil has executed India’s first low-grade manganese ore export through the port of Visakhapatnam. The inaugural consignment totalled 54,600t and sailed for Indonesia on 22 August. Under the State Trading Enterprise regime, Moil now controls all exports of manganese ore below 46pc grade.

This mandate centralises export decision-making for low-grade Mn ore in a single state-backed entity. Therefore Moil can aggregate domestic supply, coordinate pricing and negotiate offtake with overseas buyers. The new mechanism also connects Indian suppliers with international customers, improving transparency and logistics.

India exports first low-grade manganese ore at a time when many steelmakers prefer higher-grade feedstock. However, low-grade material remains attractive for specific processes, blending and cost-sensitive markets. Indonesia’s growing manganese and alloy demand provides a natural first destination for this trade.

Surplus low-grade Mn reserves drive export strategy

India holds large reserves of low-grade manganese ore that exceed domestic demand. Historically, these fines faced limited commercial outlets or were underutilised in domestic steel and alloy production. As a result, policymakers now see exports as a way to unlock stranded value and diversify mineral revenues.

By ensuring India exports first low-grade manganese ore through a structured channel, Moil can build a pricing and quality benchmark. Over time, repeat shipments could establish Indian-origin low-grade Mn as a recognised segment in Asian markets. Meanwhile, exports may help optimise mine plans by monetising materials previously considered marginal.

The state’s decision to use a dedicated trading enterprise also aims to avoid fragmented, opportunistic deals. A coordinated approach can support better freight optimisation, contract discipline and adherence to environmental and social standards. If successful, this model could be replicated for other surplus low-grade ores.

The Metalnomist Commentary

India’s first low-grade manganese export is small in global volume terms but big in signalling intent. If Moil can scale this trade while maintaining quality and reliability, India could emerge as a regular low-grade Mn supplier to Southeast Asia. Market participants should watch future tenders, destination diversity and pricing trends against African and Australian material.

Manganese Ore Export Prices to China Drop Amid Weaker Demand from Chinese Alloy Importers

Manganese Ore

In response to a slowing demand for manganese ore among Chinese alloy producers, major mining companies outside of China are reducing export prices. French mining giant Eramet Comilog has set its November shipment price for 45% Gabonese lumpy manganese ore at $3.95 per metric tonne unit (mtu) cif China—down $1.05/mtu from October levels.

South African UMK, another large-scale player in manganese production, dropped its price to $3.70/mtu for South African 36% lumpy manganese ore in October, a significant decrease from September’s $4.60/mtu.

Consolidated Minerals (CML), which operates mining ventures in Australia and Ghana, priced its Australian 45% lumpy manganese ore at $4.25/mtu cif China for November. While no comparable data is available for the previous two months, CML’s prices reached $9.30/mtu in August.

The manganese ore market had seen steady price increases since April, but started to decline in September after a halt in operations by South32’s Gemco joint venture due to Tropical Cyclone Megan. These disruptions, coupled with narrower profit margins and reduced outputs at steel mills, led to a decrease in demand and price adjustments.

As of October 10, Australian lumpy manganese ore (44-46% grade) was priced at 42-44 yuan/mtu ($5.93-6.21/mtu) in Chinese markets, significantly lower than the June high of Yn70-73/mtu. The downward trend in the alloy market, along with higher supply from Australian sources, prompted Chinese alloy producers to source ore from alternative markets.

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.

Moil Adjusts October Manganese Ore Prices Amid Declining Demand in India

Manganese Ore India

India's state-owned mining company, Manganese Ore India Ltd. (Moil), has announced a price reduction for its October manganese ore shipments, reflecting weakened demand in the domestic steel and manganese alloy sectors. Moil has reduced prices for ferro-grade ore, which contains 44% or higher manganese content, by 20% compared to September's levels. However, the company raised prices for lower-grade ores, including those with less than 44% manganese content, and silico-grade ores with 25% and 30% manganese content, by 5%.

The Market Impact of Moil's Adjustments

Moil's pricing decisions are often a key indicator of trends in India's broader manganese market. As a major player in the Indian ore market, Moil's price changes typically influence other suppliers, who are likely to follow suit and adjust their prices in response to Moil's lead. In the April-June quarter, Moil produced 470,000 tons of manganese ore, marking an 8% increase year-on-year, while its sales also grew by 15%, reaching 453,000 tons during the same period.

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.

India's Smiore to Boost Manganese Ore Production in Karnataka

India's Smiore

India's Sandur Manganese and Iron Ore (Smiore) has received environmental clearance to increase its manganese ore production capacity in Bellary, Karnataka. The company's plan, which has been approved by both the Environment Ministry and the Karnataka State Pollution Control Board (KSPCB), will raise its manganese ore output from 430,000 tonnes per year to 550,000 tonnes per year under the Air and Water Act.

This expansion is expected to lead to increased production of ferro-manganese and silico-manganese, crucial alloys in steel manufacturing. However, the company has not yet specified a timeline for completing this project.

Expanding Production Amid Growing Demand

Smiore operates two mines with reserves estimated at 17 million tonnes of manganese ore and 117 million tonnes of iron ore. In the April-June quarter, the company sold 9,396 tonnes of ferro-alloy, marking a 35% year-on-year increase. This production boost positions Smiore to meet the rising demand for ferro-alloys in India and globally.

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.

Moil Sets Record Manganese Production Amid Market Challenges

Moil

Indian state-owned enterprise Manganese Ore India Limited (Moil) has achieved unprecedented levels of manganese ore production. In October, Moil's output reached about 147,000 tons, a substantial 32% increase compared to the same month last year. This surge in production reflects a broader trend for the fiscal year April 2024 to March 2025, during which the company produced a total of 1.01 million tons, representing a 10% increase from the prior year.

Production and Market Dynamics

The increase in manganese ore production comes at a time when the global market faces significant volatility. Moil’s strategic ramp-up in production aligns with rising demand and tight supply dynamics. In October alone, the company sold 100,000 tons of ore, marking a 21% increase from the previous year. Over the first seven months of the fiscal year, Moil sold 850,000 tons, surpassing its sales records from the previous year due to constrained market supplies.

Pricing Adjustments

In response to market conditions, Moil adjusted its pricing strategy. The price for ferro-grade material with a manganese content of 44% and above was reduced by 7% from October levels. Additionally, prices for ore with less than 44% manganese content and for 25% and 30% silico-grade ore and fines saw a reduction of 1% from the previous month's prices.

This proactive approach in production and pricing reflects Moil's adaptation to the evolving market landscape, ensuring its position as a key player in the global manganese market.

China’s Jingxi Daxinan Resumes Manganese Flake Production Post Lunar New Year

Manganese Flake

Equipment Maintenance Over, Firm Restarts Output of 30-40 t/d Flake Production

China's Jingxi Daxinan, a major producer of manganese flake, has resumed its production of 30-40 tonnes per day (t/d) this week, following a scheduled equipment maintenance during the lunar new year holiday. This marks the firm's return to full operations after halting production in late January, just before the holiday.

Recovery of Manganese Flake Production and Rising Prices

Jingxi Daxinan’s smelter, located in Jingxi city in south China's Guangxi province, has a capacity to produce 20,000 tonnes per year. The production stoppage, part of a broader industry trend, was primarily due to routine maintenance and production losses faced by some smaller producers. Many smaller manganese producers without in-house mining and power generation facilities halted production to address similar challenges.

Post-holiday, manganese flake prices have started to show signs of recovery, driven by the rising prices of substitutes in the ferro-alloy market. This upward trend is supported by higher prices of imported manganese ore, which have pushed up the costs of ferro-alloy substitutes, leading producers to raise prices.

Domestic Price Increase and Market Outlook

On February 7, 2025, domestic prices for 99.7% grade manganese flake were assessed at 12,500-12,700 yuan per tonne ($1,715-$1,742/tonne) ex-works, reflecting a modest increase of Yn100 per tonne compared to February 6. This increase aligns with the broader trend of rising costs for manganese ore substitutes, which have been influenced by the higher costs of imported manganese ore.

With production now resuming, the market anticipates further shifts in supply and price dynamics. As more producers resume output, manganese flake production is expected to stabilize, supporting the growing demand from industries that rely on manganese for ferro-alloy production.

OM Holdings Increases FeSi Output Amid Si Metal Shift

OM Holdings

OM Holdings boosted ferro-silicon (FeSi) production in Q4 by converting silicon metal furnaces. However, manganese alloy output declined due to a furnace outage.

Production Shifts and Furnace Operations

OM Materials produced 48,061t of FeSi in Q4, an 18.3pc year-on-year increase. 2024's total FeSi output reached 190,517t, up 36.5pc from 2023. This increase resulted from switching two silicon metal furnaces to FeSi production due to weak silicon demand. At year-end, six FeSi furnaces and two silicon metal furnaces produced FeSi, while seven furnaces produced manganese alloys. One manganese alloy furnace restarted after a November outage.

Manganese Alloy and Ore Output Decline

Consequently, manganese alloy production fell 14pc to 72,769t in Q4. Manganese sinter ore production dropped 46.2pc to 23,204t. Full-year manganese alloy production rose 8pc to 317,013t. Sarawak's capacity, after furnace conversion, includes 120,000-126,000 t/yr of FeSi, 333,000-400,000 t/yr of manganese alloys, and 21,500-24,500 t/yr of silicon metal. The sinter plant can produce 250,000 t/yr of sinter ore.

Trading and Mining Developments

OM Materials traded 387,271t of ores and alloys in Q4, down from 514,757t last year, driven by lower manganese ore volumes. However, late-quarter market quotes showed signs of increase. The group trialed restarting its Bootu Creek manganese mine, aiming for 35pc Mn grades. Initial grades reached 30-33pc Mn. A second trial is planned this quarter. The ultra fines plant restart is delayed to Q2. Tshipi Borwa Manganese mine, where OM holds a stake, exported 683,090t in Q4, up from 624,681t last year. 2024's total exports increased 8.9pc to 3.5mn t.

Georgian Manganese Halts Silico-Manganese Production Amid Market Decline and Protests

Georgian Manganese

Georgian Manganese, a leading producer of silico-manganese based in Georgia, has announced a suspension of its silico-manganese production for four months. This decision follows a prolonged decline in global demand for ferro-alloys and the resulting fall in prices. The suspension, which began on October 2, will continue through March 1, 2024, at the company's processing plant in Zestafoni, Georgia. The company confirmed the shutdown through a post on social media, citing market conditions and ongoing operational challenges.

Market Conditions and Operational Challenges

Georgian Manganese has faced a steady downturn in the silico-manganese market for the past two years, with prices continuing to soften. As a result, the company ceased sales to its primary market, the United States, in September. The market slump, coupled with protests at the company’s mining operations in Chiatura, Georgia, has made it increasingly difficult to maintain production levels.

Protests at the Chiatura mine, which accounts for a significant portion of Georgian Manganese's manganese ore supply, have worsened since March. Local picketing activities have caused a 70% decrease in production at the mine, further compounding supply issues. As a result, Chiatura Management, the contractor responsible for the mine, has been unable to ensure a consistent feedstock supply to the Zestafoni plant, prompting the decision to halt production.

Despite these setbacks, Georgian Manganese remains hopeful that market conditions will improve and the company can resume operations ahead of schedule. A crisis management plan is being developed to address the ongoing issues at the mine, with an emphasis on stabilizing the supply of manganese ore and improving overall operational efficiency.

The Importance of Georgian Manganese in the US Market

Historically, Georgia has been a significant supplier of silico-manganese to the United States. In the period from 2019 to 2023, Georgia accounted for 24% of the US’s silico-manganese imports, amounting to 415,182 metric tonnes. This year, the country has already shipped 60,253 tonnes of the 254,771 tonnes of silico-manganese imported by the US up until the end of August.

Georgian Manganese is owned by Florida-based Georgian American Alloys, which also owns Feldman Trading. Through this subsidiary, Georgian American Alloys markets its products in the US. The company also owns CC Metals and Alloys, previously a ferro-silicon producer in Kentucky, and Feldman Production, which manufactures silico-manganese and high-carbon ferro-manganese in West Virginia.

Hubei Boyang launches manganese-based battery CAM plant to scale China’s next-wave cathodes

Hubei Boyang

China’s manganese-based battery CAM build-out gained momentum as Hubei Boyang started its first-phase plant. The project adds manganese-based battery CAM capacity and manganese tetroxide at scale. As a result, manganese-based battery CAM supply will deepen near upstream ore in Hubei.

First-phase start-up and three-stage growth path

Hubei Boyang commissioned a plant with 20,000 t/yr of manganese-based CAM. It also started 30,000 t/yr of manganese tetroxide. The site sits in Changyang, Yichang, central Hubei. However, the plan is larger than this first step. The full project targets 280,000 t/yr across three phases.

Changyang county hosts abundant manganese ore reserves for feedstock. Therefore, the location reduces logistics risk and costs. Hubei Zhongmeng operates five lines totaling 50,000 t/yr of manganese flake. That nearby supply strengthens the project’s raw material security.

China’s LMFP and Mn-rich cathodes expand rapidly

China’s power battery growth is catalyzing manganese-based battery CAM investments. Producers are scaling LMFP and related Mn chemistries. Meanwhile, Hunan Yuneng is building an LMFP line. Shanxanxi Tewashi began a 100,000 t/yr plant in May. Ningbo Ronbay plans LMFP and sodium-ion CAM in Hubei. Baiyin Shidai Ruixiang launched 20,000 t/yr of battery-grade LMFP in Gansu.

Manganese-rich cathodes aim to balance cost, safety, and energy. As a result, they target EVs and storage systems. Hubei Boyang’s start-up signals tighter integration from ore to cathode. It should broaden customer options beyond LFP and ternary NCM.

The Metalnomist Commentary

China’s Mn-based push lowers cathode cost while reducing nickel and cobalt exposure. Watch phase-by-phase execution and LMFP adoption rates. Regional feedstock proximity could anchor margins during price swings.

Marula Mining Ships First Manganese Ore from Kenyan Larisoro Mine

Marula Mining

First Shipment Marks a Milestone for Marula

London-listed Marula Mining has completed its first shipment of manganese ore from the Larisoro Manganese Mine in Kenya, in partnership with Gems and Industrial Minerals (GIM). This initial delivery marks a significant step under the Mine Support Services Agreement (MMSA) between Marula and GIM.

Export to China Under Existing Agreements

The first batch, totaling 476 tonnes of manganese with an average grade of 37%, was exported from stockpiles managed by GIM in Nairobi. The ore was delivered to the port of Mombasa and shipped to China on 16 September, where it will be received by customers under existing offtake agreements. Marula will receive 60% of the net proceeds from this sale.

Marula has committed to selling ore from the Larisoro mine on a monthly basis, with sales expected to rise in Q4 2024. A $1.5 million investment will accelerate mining, crushing, screening, and processing at the site, increasing production capacity to 5,000-10,000 tonnes of high-grade ore over the next 3-6 months. Marula’s long-term exploration strategy targets an annual output of 60,000 tonnes.

Monsoon Prompts India's Moil to Cut August Mn Ore Prices

Indian state-owned mining company Moil has cut its manganese ore prices for August shipment as the monsoon lowered demand from the manganese alloy sector. The company reduced its prices for ferro-grade material with 44% and above manganese content by 10% from July. Prices for ore with manganese content below 44%, as well as 25% and 30% silico-grade ore and fines, dropped by 27% from July.

Moil's price changes usually indicate the direction of the wider manganese market in India. Other Indian ore suppliers will likely follow and cut their prices accordingly.

Gabon Manganese Export Ban Takes Effect in 2029

Gabon Manganese Mining

Gabon announced a complete Gabon manganese export ban on unrefined ore starting January 2029. The world's second-largest manganese producer aims to boost domestic processing and industrial capacity. This transformative Gabon manganese export ban follows similar African resource nationalism strategies.

Major Impact on Global Manganese Supply Chains

Gabon produces 4.6 million tonnes annually, representing 25% of global manganese output. China and the US face significant supply disruptions from this policy change. Meanwhile, the US imported 63% of its manganese from Gabon last year. The ban threatens established supply chains for steel and battery industries worldwide.

French mining giant Eramet, through subsidiary Comilog, dominates Gabon's manganese sector. The company operates existing downstream facilities producing silico-manganese and manganese metal. However, current utilization remains low with only 18,000 tonnes exported in 2024. Comilog employs over 3,300 people locally, making workforce considerations critical.

African Resource Nationalism Accelerates

Several African nations now restrict raw material exports to capture value domestically. Guinea banned bauxite exports while Zimbabwe restricted lithium ore shipments recently. Furthermore, Mali and Tanzania implemented gold export restrictions this year. Therefore, the Gabon manganese export ban represents broader continental industrial ambitions.

President Brice Oligui Nguema emphasizes increased state revenues through downstream processing. Moreover, this strategy requires massive investment in new manganese alloy production capacity. As a result, international miners must develop processing plants or exit Gabon entirely. The five-year transition period allows stakeholders to adjust operations accordingly.

The Metalnomist Commentary

Gabon's 2029 manganese export ban creates immediate pressure on Western supply chains already strained by geopolitical tensions. With China controlling most manganese processing capacity globally, this move could paradoxically strengthen Beijing's market position unless Western nations rapidly develop alternative processing hubs. Eramet's underutilized facilities suggest the technical and economic challenges of African beneficiation remain substantial.

Sakura Ferroalloys FeMn expansion accelerates sinter plant and converter investment in Malaysia

Sakura Ferroalloys

The Sakura Ferroalloys FeMn expansion marks a major upgrade of its Sarawak ferro-manganese operations. The company has opened a new sinter plant and started building a converter for refined FeMn products. As a result, the Sakura Ferroalloys FeMn expansion will improve raw material efficiency and diversify carbon grades for global steel customers.

The Sakura Ferroalloys FeMn expansion also reflects a strategic shift in ownership and technology. Assore now holds 54.36pc of Sakura Ferroalloys after acquiring Assmang’s stake in June. Meanwhile, ore from Assmang continues to feed the plant, while Sumitomo and JFE help secure international sales channels. Therefore, the Sakura Ferroalloys FeMn expansion combines South African ore, Japanese trading muscle and Asian steel demand.

New sinter plant boosts furnace stability and ore utilisation

The new sinter plant is central to Sakura’s plan to lift efficiency and stability. The 141mn ringgit facility, completed after 22 months, prepares more consistent feed for smelting. This consistency should improve furnace performance, energy efficiency and metallurgical recovery rates.

By sintering ore fines and optimising feed size, Sakura can use a broader range of manganese raw materials. This flexibility matters as ore quality varies across mines and market cycles. As a result, the sinter plant supports more stable high-carbon FeMn output from Sakura’s existing 250,000 t/yr capacity.

The project also underpins environmental and cost performance. Better furnace stability usually reduces specific energy consumption and slag generation. Therefore, the sinter plant strengthens Sakura’s competitiveness against other Asian and global FeMn suppliers. It helps secure long-term contracts with steel mills that demand reliable quality and delivery.

Project Salamander moves Sakura into refined ferro-manganese

Project Salamander is the second pillar of the Sakura Ferroalloys FeMn expansion. The 346.5mn ringgit converter project will produce medium-carbon and low-carbon ferro-manganese. These refined grades are essential for high-quality steel, including automotive, structural and special steels.

Construction is planned over 21 months, with hot commissioning targeted for April 2027. Full production ramp-up is expected by mid-2027, adding 70,000 t/yr of refined FeMn capacity. Meanwhile, high-carbon FeMn output will continue to serve bulk steel applications worldwide. This product diversification reflects evolving customer demand for tighter alloy specifications and cleaner steels.

JFE Mineral & Alloy’s acquisition of a 7.5pc stake in Sakura in July was a key enabler. The deal gives Sakura access to JFE’s refining technology and process expertise. Therefore, the Sakura Ferroalloys FeMn expansion is not only about hardware, but also about advanced know-how transfer. Over time, this should lift product quality, yield and margins across Sakura’s FeMn portfolio.

The Metalnomist Commentary

Sakura’s combined sinter and converter investments show how ferro-alloy producers move up the value chain under margin pressure. By pairing ore-flexible sintering with refined FeMn capability and Japanese technology, Sakura positions Sarawak as a regional ferro-manganese hub. Market participants should watch contract terms and utilisation after 2027, as these will signal how quickly higher-value FeMn displaces basic grades in Asian steelmaking.

Georgian Manganese Ends Underground Mining at Chiatura Amid Low Ore Grades and Mounting Losses

Georgian Manganese Mining

Strikes, falling silico-manganese prices, and financial strain force producer to scale back operations in Georgia.

Georgian Manganese, a key manganese alloy producer, has announced it will permanently halt underground mining at its Chiatura complex in Georgia. The decision follows an independent audit by DMT, a German consultancy, which found ore grades too low to process profitably.

The review cited “very high operating costs” and a continued slump in manganese concentrate prices, concluding that underground operations were economically unviable. Chiatura also includes open-pit mining, which remains under review.

Labor Disputes and Financial Pressures Escalate

Protests and strikes have plagued Chiatura since early 2023, with 70% of the mines affected before operations fully halted in November. The strike also forced the suspension of silico-manganese production at the Zestafoni smelter, a key facility for Georgian Manganese.

Chiatura Management (CMC), the operating contractor, failed to install cost-saving technology upgrades due to the unrest. During the shutdown, CMC continued paying workers, incurring loans worth 83 million lari ($29.9 million) to meet union obligations. These costs have now caused "colossal losses," according to CMC director Maxim Mazurenko.

US Exports Decline as Market Prices Fall

Georgia has long served as a major silico-manganese supplier to the United States, exporting 78,692 metric tonnes in 2023, or 22% of U.S. imports. However, shipments ceased in October, though some volumes still entered in November and January.

Meanwhile, spot prices for silico-manganese have fallen sharply to 56–60¢/lb, a 64% drop from the March 2022 peak of $1.50–1.70/lb, based on SUPERMETALPRICE. Prices remain in a tight band due to long-term contracts covering most U.S. steelmakers.

Georgian Manganese’s decision signals deeper challenges in the global manganese supply chain, especially for regions reliant on export-dependent alloy production.

Ferroglobe Sees Boost in Q2 Silicon and Manganese Alloy Sales Following French Plant Restart

Ferroglobe, a leading Spanish producer of silicon and ferro-alloys, reported a significant rise in sales volumes and earnings for the second quarter of 2024, primarily driven by the resumption of operations at its French facilities in April. The restart bolstered production levels, resulting in a 124% increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching $57.7 million for the quarter. However, this figure reflects a 44% decline compared to the same period last year.

Silicon metal shipments surged to 62,872 tons, marking a 24.1% year-on-year increase and an 18.2% rise from the first quarter of 2024. This growth was largely attributed to stronger sales in Europe, the Middle East, and Africa. The average sales price for silicon metal also saw a modest 2.8% increase from the previous quarter, reaching $3,244 per ton, though it remained 15.8% lower than in the previous year.

Despite a decrease in demand in the U.S., shipments of silicon-based alloys reached 46,953 tons, a decrease of 5.1% year-on-year and 8.2% from the first quarter. Nonetheless, the average selling price for these alloys rose by 2.4% to $2,241 per ton in the April-June period.

Manganese-based alloys experienced a significant boost, with shipments totaling 81,464 tons, up 30.2% from the previous year and 30.7% from the previous quarter. The average sales price for these alloys increased by 12.9% to $1,204 per ton.

Ferroglobe's strategic decision to increase manganese ore purchases in the first quarter, taking advantage of a market disruption caused by weather-related shutdowns of South32's manganese ore mine in northern Australia, allowed the company to secure ore at below-current market costs.

Looking ahead, Ferroglobe anticipates that higher prices for its metals and alloys will positively impact its performance in the third quarter. However, the company remains cautious, noting that market dynamics may shift following the end of the summer holiday period in Europe.

China's Yunnan Jiangnan Halts Manganese Production Amid Environmental Inspections

Chinese manganese producer Yunnan Jiangnan has suspended its daily output of 90-100 tons of manganese flake in response to recent environmental inspections. According to a company source, the timeline for resuming production remains uncertain. The smelter, situated in Wenshan city in southwest China's Yunnan province, boasts an annual production capacity of 50,000 tons of manganese flake.

The suspension could impact not only Yunnan Jiangnan but also other smelters across China. The country's manganese market is experiencing tight supply conditions, contributing to the recent surge in manganese ore prices over the past few weeks.

Compounding the situation, South32's GEMCO mine in Australia has also halted production due to cyclone damage, further destabilizing the manganese market. This disruption has led to decreased manganese ore inventories at ports and smelters, fueling expectations of continued price increases among market participants.

The production halt at Yunnan Jiangnan is closely tied to the Chinese government's intensified environmental regulations, which are expected to similarly affect other industries.

Giyani Metals Begins Commissioning of Battery-Grade Manganese Plant

Giyani

Johannesburg, South Africa – Giyani Metals, a Canada-based mining and materials company, has announced the commencement of commissioning at its battery-grade manganese demonstration plant. This marks a significant step toward advancing the global supply chain for high-purity manganese, a critical material for the electric vehicle (EV) battery market.

"Our demo plant has commenced commissioning and we are on track to produce a battery-grade manganese product in this quarter," said Charles FitzRoy, CEO of Giyani Metals, during a webinar held this Thursday.

Key Milestone in Manganese Production

The demonstration plant, designed at a 1:10 scale of the envisioned commercial facility, operates continuously. It serves as a precursor to the larger plant that will be built adjacent to Giyani’s manganese ore project in Botswana.

FitzRoy revealed that the company aims to deliver its first battery-grade manganese products for offtake agreements by late 2024. Meanwhile, construction of the commercial-scale plant is expected to begin in 2026, with production ramp-up targeted for 2027.

Rising Demand for Manganese in EV Batteries

The commissioning aligns with growing interest from original equipment manufacturers (OEMs) seeking manganese-rich battery chemistries. FitzRoy underscored a notable trend:

"We are seeing OEM groups pushing towards higher manganese content batteries. That's very important because that's where we see demand coming."

He also pointed to a projected global supply gap in high-purity manganese sulfate monohydrate (HPMSM). Current production, estimated at 300,000 metric tons annually, falls significantly short of the anticipated demand of 1.6 million tons by 2034. A supply gap of approximately 1.2-1.3 million tons underscores the urgency for new production sources like Giyani's upcoming facility.

A Step Forward for Sustainable Energy

With the EV market's rapid growth, materials like HPMSM are increasingly essential. Giyani Metals' efforts to scale up production could help mitigate supply shortages while supporting sustainable energy transitions worldwide.