How do you build a ferro manganese smelter with peanuts, or peanut shells? You need US$200 million to build a competitive smelter, this isn't 1960.
Meanwhile the smelters in Malaysia are building a reputation that will make it difficult for expensive smelters to get a nose in.
While GMC scratches around trying to pick up a couple of lumps of Mn ore the South Africans are pumping out millions of tonnes. Tshipi is currently producing 3 million tonnes pa. And GMC is importing 50 year old furnaces that are only fit for scrap. Those 4 MVA furnaces from 1964, and modified to 7MVA will use so much more power/electricity than newer furnaces. I'm sure Hamish is laughing all the way to the bank with his salary package. Talk about snouts at the trough.
South African manganese ore exports to Asia rise by up to 355%
Shipping trends tracking South African exports show sharp increases in manganese ore flows to Asia in the first nine months of the year.
South African bulk manganese ore exports to Malaysia increased more than three-fold year on year to 469,000 tonnes for the January-September period. This reflects growing ore feed to a series of manganese alloy plant startups in the country since early 2016 by major manganese industry players.
