Actual Results Of Chinese Manganese Metal In 2006 And Its...

Actual Results Of Chinese Manganese Metal In 2006 And Its Outlook For 2007
= Domestic Sales Exceeded Exports, Matter In Question Is How To Secure Raw Material To Be Required In 2007

"China has suffered from the difficulties to secure manganese ore ( manganese carbonate ore ) as raw material for production of electrolytic manganese metal and the matter in question for the near future is how to ensure a stable procurement of raw material. A plenty quantity of low grade manganese ore with Mn 15 - 20% had once reserved in domestic mines, particularly in Huanan district, but its over-mining and an excessive demand for this ore have caused the factors to feel an anxiety for supply of manganese carbonate ore. China has been already moving from 2006 to import manganese ore as raw material but the sources to import manganese carbonate ore as main raw material have been globally limited to Ghana and Mexico. A large quantity of manganese sulfide has been produced in the world but this ore is necessary to pretreat by kiln and, therefore, a measure to use manganese sulfide has been not forestalled. Nevertheless, a steep rise of price for electrolytic manganese metal has stimulated to increase the domestic production of low grade manganese ore in China.

For a reference, China imported 584,000 tons of manganese carbonate ore from Ghana and only 960 tons from Mexico in 2006. Manganese carbonate ore imported from Ghana has been traditionally used in China as raw material for production of silico-manganese and the quantity of this ore used for production of electrolytic manganese metal is estimated to be a scale of less than 100,000 tons per annum. It was expected that more than 300,000 tons of manganese carbonate ore will be supplied to produce electrolytic manganese metal in China for 2007 but, for the convenience of Ghana, a feeling of anxiety for the supply is expanding. The reason is that Privat of Ukraine, which requires Ghanaian manganese ore and actually imported 832,000 tons from Ghana in 2006, has acquired in April of this year the right to manage Ghana Manganese Company and expressed that the existing contracts on manganese ore will be amended. Ghana produces 1,600,000 tons per annum of manganese carbonate ore and exported this ore in 2006 for <> Ukraine ( 832,000 tons ), <> China ( 584,000 tons ) and <> Norway ( 150,000 - 200,000 tons ). Ukraine has a priority to import manganese carbonate ore from Ghana and, accordingly, a possibility to decrease the quantities for China and Norway is arising.

A shortage of manganese ore as raw material for production of manganese ferro-alloys in China is becoming remarkable and the consumers concerned in China have already bidden for high grade manganese ore with Mn 48% at US$5.00 per Mn 1% CIF China. Generally, main points to sell manganese carbonate ore produced in China as raw material for production of electrolytic manganese metal are low grade ore but lowered price. This manganese carbonate ore has been restricted to be consumed to produce ferro-alloys, mainly electrolytic manganese metal. Even if China would shift this raw material to import, its location has a factor to restrain the import and the cost to import manganese carbonate ore should increase."