Manganese ore output in China fell by 34% in 2009
However, the total quantity of manganese ore produced by major mines in the calendar year of 2009 finally had a decrease of 34% compared with that in the preceding year of 2008. All of such major manganese mines in the world as BHP Billiton, Vale, Eramet and Assmang decreased their production of manganese ore by 30% to 40% in 2009.
The world output of crude steel in 2009 came down to 1,220 million tons by a decline of 8% compared to that in 2008 and this decrease in production of crude steel caused a reduction in production of manganese ore.
Major manganese mines anticipated from the beginning of 2009 a substantial decline of the demand for manganese ore to be arisen from a reduction of steel production and, in order to cope with this severe aspect, entered into the structure to decrease their production of manganese ore in 2009 by a large extent of 50% to sustain price of manganese ore.
However, the price of manganese ore (lumpy ore with Mn 44%) settled with Chinese customers for shipments in the first half of 2009 had fallen to $3.50 per Mn 1% CIF. This fallen price of manganese ore for China had rebounded in the second half and, in particular, recovered to a level $5.50 to $6.50 CIF in October to December quarter but, in the course of time, some mines had suffered from their unprofitable sales of manganese ore for China.
The world consumption of manganese ore in 2009 had a decline, excluding that in China. However, China imported 9.61 million tonnes of manganese ore in 2009, having increased by 2.03 million tonnes (26.7%) compared to that in 2008, and this substantial increase of manganese ore imported into China in 2009 diluted a decline of the world consumption in the year.
The output of manganese ore at Groote Eylandt mine of BHP Billiton in Australia recovered somewhat in 2009, particularly owing the rushed production in October to December quarter, but their production throughout 2009 had a decrease. Only Kazakhstan, neighboring to China, increased their production of manganese ore by 13%. South Africa, Gabon and Brazil, where have been located in long distance places from China, had to decrease their production of manganese ore in 2009, having caused to retreat their shares in China.
For a reference, Assmang of South Africa decreased their sales of manganese ore in 2009 to a considerable extent (sold 2.32 million tonnes).
However, this decline in sales of manganese ore in 2009 had related with their increased sales in 2008 of low grade fine ore for China as stocked at mines of Assmang and, as a matter of fact, Assmang sold 3.57 million tonnes of manganese ore to China in 2008 with an extraordinary increase, Therefore, the decreased sales of manganese ore from Assmang to China in 2009 were compared with this considerable increase of the sales for China in 2008 as an exceptional case.
Assmang so far produced manganese ore on a scale of 2,700,000 to 3,000,000 tonnes per annum, including their own consumption at the Cato Ridge plant.
Australian companies involved in manganese exploration and mining include: Shaw River Resources (ASX:SRR), Om Holdings (ASx:OMH), Groote Resources (ASX: GOT), Southern Hemisphere (ASX: SUH) and Encounter Resources (ASX: ENR).
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