indian steel producers seek raw materials

11 Jan

Indian Steel Producers Aggressively Seek Raw Materials

In part...


Other South African manganese miners could benefit from increased steel production due to the investments being made by India. Australian listed Jupiter Mines Limited (ASX:JMS) has a world class deposit in the Kalahari manganese fields. The manganese fields are said to hold 50 percent of the world?s Mn resources. The Tshipi Project, according to the company, has a resource estimate of 163 Mt at a grade of 37.9% Mn. The project is a joint venture with Ntsimbintle Mining Limited. Ntsimbintle is a Black Economic Empowerment (?BEE?) company, which is of special consideration with black empowerment laws in South Africa.

Om Holdings (ASX:OMH) the parent company of Jupiter Mines, recently announced that it had made a $21 million deal for the land to build a manganese processing plant in Malaysia to process the ore from the Tshipi Project. However, the company has ?yet to reveal the likely development cost of the 66,000-tonne-a-year manganese alloy smelter,? reported Peter Klinger, for The West Australian.

While steel demand may cool off slightly this year in Asia, growth is still expected. The aggressive actions taken by Indian companies to secure raw materials needed for steel production is an indicator that steel and manganese demand has a healthy long run prospective.



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