Ukrainian Ferroalloy Production Doubles

Ukrainian Ferroalloy Production Doubles

Ukraine doubled its ferroalloy output in the first seven months of this year, according to figures released by Ukrainian Ferroalloy Producers' Association.

Output for the period grew to 871,500 tonnes. Silicon manganese production grew 83.1 per cent to 573,700 tonnes, ferromanganese rose 260 per cent to 173,000 tonnes, ferrosilicon 45 output rose 71.7 per cent to 116,400 tonnes and manganese metal production was up 7.7 per cent to 8,400 tonnes.

The country’s largest producer, Nikopol Ferroalloy Works (NFW), raised silicon manganese production 65.8 per cent year-on-year in the seven months to 421,000 tonnes while ferromanganese production was up 460 per cent to 132,500 tonnes. Overall ferroalloy output at Nikopol rose 140 per cent year-on-year to 554,000 tonnes.

Zaporizhia Ferroalloy Works (ZFW) saw silicon manganese production more than double to 103,100 tonnes with output of ferrosilicon 45 rising 120 per cent to 33,800 tonnes. ZFW’s ferromanganese was up 64.4 per cent to 40,500 tonnes and manganese metal production rose 7.7 per cent to 8,400 tonnes. Total ferroalloy output at ZFW doubled to 185,800 tonnes.

The Stakhanov Ferroalloy Plant (SZF), doubled its total production to 131,700 tonnes, while the country's two manganese concentrate producers, the Ordzhonikidze and Marhanets mining and beneficiation plants, produced 846,500 tonnes of concentrate between them in January-July - more than double the production in the same period of last year.

China Armco Arm Signs Strategic Partnership With Broker

Deal Will Give Access to Supply Contracts

Armco & Metawise (H.K.), Ltd, a subsidiary of US-based metal importer, China Armco Metals, Inc. has established a strategic partnership with Asian commodity broker, TCG Commodity Management.

TCG will source a number of high demand minerals as part of the Company's recent strategy to seek longer term supply contracts for distribution in China and has agreed to provide A&M preferential access to supplies of Manganese, Pig Iron and Iron Ore from Brazil, and Coal from Colombia.

Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc. said, "There is currently a supply-demand imbalance in China, with many core industrial minerals and metals. While this is largely attributable to China's strong growth, there are a number of other factors that contribute to this problem including market inefficiencies, differences in business culture and communication challenges. We believe these factors are very prominent in South America where a vast supply of these materials can be sourced into China. This is why we are convinced this partnership opens the door to a very large opportunity for us. First, TCG is unique because it has deep experience in Asia, with a management team that has been financing trades in the Asia region for decades, coupled with an established infrastructure in Brazil. TCG has a wealth of business relationships in Brazil in marketing, banking, and legal and has facilitated billions of dollars worth of international commodities transactions in numerous countries. We know of no other company with this particular balance. Second, TCG has direct access to mines and can enable us to obtain product without having to build our own origination system in South America."

Van Carter, Chairman and CEO of TCG Commodity Management, LLC, said "This business is dependent upon four factors. First is the ability to bridge the differences in business culture, communication and regulation that exist between China and Brazil. Second is the ability within Brazil, to establish deep personal and professional relationships to secure access to mineral products. Third is the ability to secure favourable pricing and delivery terms, which is a direct function of our access to capital. Through our relationship with A&M, we now have direct access to end-users in China, which is the fourth essential element of a successful business. This is a win-win for both companies."

Earthstone Acquires Zambia Manganese Concessions

Manganese Exploration To Begin In Luapula Province

Dubai-based Earthstone Metals Group, has acquired exclusive irrevocable mining rights for three manganese concessions in Zambia’s Luapula province.

Although South Africa is well-known for its manganese export, Earthstone feels that Zambia still has untapped opportunity in development of the mineral.

The new concessions are located within 60 km radius from Mansa Town, capital of Luapula province. Total combined area of the project exceeds 140,000 Hectares.

The grade of the ore is high (48 to 54% Mn) and the bulk of the ore consists of predominantly Psilomelane (MnO2) with occasional residual crystals of Hausmannite (Mn3O4) and Manganite (Mn2O3H2O). Earthstone has chalked out ambitious exploration program for conducting Geophysical Survey followed by shallow diamond drilling. Based upon the available exploration data, the company will commence semi-mechanized mining operation by April 2010 with a production target of 10,000 Tons/month that will be enhanced to 30,000 tons a month after 5-6 months. With further acquisitions of Manganese Ore concessions and the completion of detailed exploration work, production will ramp up to 1,000,000 tons a year within three years.

Commenting on the development, Raju Lalchandani, Managing Director, Earthstone Resources (Zambia) Ltd. said: "We find Zambia as an exceptionally investor-friendly country. Dollarisation of economy is a very intelligent scheme that is being promoted by the Government - and this is radically changing investor climate."

Groote Eylandt Manganese Mine Restarts Production

BHP Restarts Northern Territory Mine

BHP Billiton has re-commenced production at its Groote Eylandt manganese mine in Australia’s Northern Territory. Poor weather conditions in the area led the company to suspend operations on 28 March.

The mine is jointly owned by BHP Billiton (60%) and Anglo American Corporation (40%) and is one of the world’s leading suppliers of manganese ore.


Huge Increase In Ukrainian Ferroalloy Production

Ukraine’s ferroalloy industry confirmed its recovery when the Association of Ukrainian Ferroalloy Producers (UkrFA) reported that production in the first two months of 2010 increased by 2.9 times to 240,700 metric tonnes compared to the first two months of last year.

Silico-manganese output rose 2.8 times to 158,100 mt, ferromanganese production rose 5.4 times to 46,100 mt; ferrosilicon output increased 2.2 times to 33,700 mt, and metallic manganese production rose 86.7 percent to 2,800 mt, all compared to the same period of 2009.

The three largest ferroalloy producers all reported significant increases: Nikopol Ferroalloy Plant, increased its output by three times to 148,600 mt, including 112,900 mt of silico-manganese and 35,700 mt of ferromanganese. Zaporozhye Ferro Alloys Plant increased its ferroalloys output by 2.6 times to 53,800 mt, including 31,600 mt of silicomanganese, 9,000 mt of ferrosilicon, 10,400 mt of ferromanganese, and 2,800 mt of metallic manganese. Stakhanov Ferroalloy Plant increased its output by 3.3 times year on year to 38,300 mt, including 24,700 mt of ferrosilicon and 13,600 mt of silico-manganese.

Outotec To Suply EUR 119 Million Sinter To Plant To South Africa

Finland’s Outotec has agreed to design and deliver a new manganese plant for South Africa’s Kalagadi Manganese Pty Ltd. The plant will be built in Hotazel in South Africa’s Northern Cape Province in a contract worth EUR 119 million. The plant will be commissioned by March 2012.

Outotec is responsible for the delivery of the sinter plant on a turnkey basis including engineering, project management, supply of all equipment and structural steel, construction, commissioning as well as advisory services for civil works. The new plant will ultimately produce 2.4 million tonnes of sinter annually.

Kalagadi Manganese is 50-percent owned by ArcelorMittal, 40 per cent by Kalagadi Resources owns 40 percent with IDC owning the remaining 10 percent.

"Kalagadi's new plant will be one of the world's largest manganese sinter plants. This significant order once again demonstrates our ability to deliver total process solutions to customers - from the test work with raw materials to defining the optimal process and technology, plant engineering, as well as equipment supplies and services, not to mention taking full responsibility of the project and performance guarantees," said Outotec's President and CEO, Pertti Korhonen.

Earlier this month Outotec signed a EUR 116 million deal with Chile’s Codelco for the design and delivery of a copper concentrate roasting plant, gas cleaning system and sulfuric acid plant for its new Mina Ministro Hales mine near Calama, Northern Chile.

Ghana's Mining Industry 'Set For Growth' - Report

Political stability in Ghana, along with clear regulatory standards, will underpin Ghana’s mining sector in 2010 giving the sector great promise for growth. So says the first quarter 2010 Ghana Mining Report by the research firm, Research and Markets.
Ghana is Africa’s second-largest producer of gold after South Africa as well as being one of the world’s largest producers of manganese ore, bauxite and diamonds and some of the major players in the gold mining industry such as Gold Fields, Newmont Ghana and AngloGold Ashanti all have a significant presence in the country.

According to the report the value of Ghana’s mining industry will more than double over a five-year period, from $0.64 billion in 2009 to $1.68 billion in 2014, with the high price of gold a significant factor in this increase.

The report’s authors took into consideration, data from the country’s statistical agencies and associations, as well the UN’s Industrial Commodity Statistics Database, the US Geological Survey and the World Bureau of Metal Statistics and then used their own proprietary econometric model to forecast future figures and trends.

Gold accounts for over 90 per cent of the country’s revenue. Exports in 2009 were US$ 2.6 billion, compared to US$2.2 billion in 2008. Gold output was 2.6mn oz (up 4% y-o-y) selling at an average realised price of US$852 per oz. Manganese revenue was up by a 69%, to US$62.34mn, while bauxite revenue was flat, at US$19.81mn.

The President of the Ghana Chamber of Mines, Jurgen Eijgendaal, said that 2009 would be a mixed year for Ghana's mining industry. He expects gold to perform well, while bauxite and manganese exports could fall as a result of a decline in demand.

Profits Dive At OM Holdings

ASX-listed OM Holdings Limited (OMH) has reported a fall in post-tax profits of 77 per cent from last years $115.6 million to $26.9 million for the year to 31 December. The fall is blamed on lower prices and volumes for its manganese ore.

OM is looking for a better 2010 with budgeted production and sales of 1 million tonnes of ores and 41000 tonnes of high carbon ferromanganese powered by estimated Chinese steel production this year of 620 million tonnes.

Meanwhile OM also announced that reserves at its Bootu Creek manganese mine in Australia’s Northern Territory now stands at 32.9 million tonnes at 23.1 per cent manganese content.

Gindalbie, Anshan Sign Co-operation Deal

Australian iron ore miner, Gindalbie Metals and its Chinese shareholder Anshan Iron and Steel Group (Ansteel), have taken their co-operation a stage further with a deal to develop metallurgical coal, manganese, chromite and nickel projects, and pellet plants and steel mills in Australia.

Gindalbie and Ansteel currently co-operate on an iron ore project at Karara in Western Australia.

"The assets to be targeted will primarily be in the carbon steel materials sector ... as well as downstream processing opportunities such as pellet plants and steel mills," Gindalbie said in a statement on Wednesday.

The statement added: "Ansteel will contribute its extensive experience as a global iron ore and steel company and access to capital to potential joint development opportunities which can provide it with long-term sources of supply of raw materials from Australia. Gindalbie will contribute its geological and resource project expertise, contacts and knowledge base within the Australian resource sector to actively identify, explore and develop quality resource projects."
Gindalbie managing director, Garret Dixon, said the two partners had already identified several opportunities and will be stepping up their search in the months ahead.

Last year Ansteel and the West Australian government agreed to undertake a feasibility study to construct the state’s first steel mill at the Oakajee industrial estate near Geraldton, which is centred on a new deep water export port. Land clearing for the project is well advanced and exports are slated to commence in 2011.

Ansteel is Gindalbie's largest shareholder with a 36.2 per cent stake.

Chinese Manganese Company Exploring In Fiji

A Chinese manganese smelting company will soon carry out exploratory work in Fiji.
China Yunnan Metallurgical Company (CYMCO) will carry out exploration work on on potential manganese deposits in Nasaucoko in the upper-reaches of Navosa on Fiji’s largest island, Viti Levu. The work is expected to cost $5million over the next three years.

The Fijian government has granted a 30-year surface lease to Viti Mining Limited which is exploring in the area. Viti CEO John Sanday said that mining is expected to start next month. Mr Sanday said CYMCO officials were impressed with the manganese ore grade in Fiji during a visit in December. Of CYMCO he said "by the end of the year it will be the biggest manganese smelting company in China and in a couple of years it will be the biggest in the world with an output exceeding one million tonnes of manganese ferroalloy per year," he said.

The manganese ore is expected to be bought by CYMCO at market prices.

Chek-Su.VK Signs Agreement For Manganese Processing Plant

Russian mining and smelting company CHEK-SU.VK has signed an agreement to build a manganese ore processing plant in the Krasnoyarsk Region of Russia.

Supplies of ore from deposits in the Kemerovo Region will be transported to the plant via Khakassia to be processed.

The project's total value is estimated at RUB 22 billion and will be completed in 2013.

The agreement was signed at the Krasnoyarsk Economic Forum which opened on Friday. Around 1000 representatives of government agencies and business have gathered at the forum to discuss issues of modernisation.

Assmang To Produce Ferromanganese At Machadodorp Works

South African ferrochrome producer Assmang has announced to shareholders that it plans to convert one of the furnaces at its Machadodorp Works to produce high-carbon ferromanganese, rather than ferrochrome. The converted furnace is expected to produce 4000 tonnes per month of HCFeMn and production will commence by the middle of this year.

In its statement Assmang said that it needs to meet higher than expected demand for high-carbon ferromanganese but that it does not have excess capacity at its Cato Ridge Works to expand production.

The company said that it still expects to meet its contractual obligations for ferrochrome and that it is committed to continuing ferrochrome production. Its ferrochrome furnaces were idle for much of 2009.

Nippon Steel Increases Stake In Ferromanganese Producer Nippon Denko

Nippon Steel Corporation has increased its stake in ferroalloy producer Nippon Denko from 9.5 percent to 15 percent. Nippon Denko will become an equity method affiliate of Nippon Steel.

The decision came after the companies' agreed to further strengthen their alliance, in order to enhance their competitive edge and corporate values.

The two companies have maintained a close business relationship through their trade in ferromanganese and the new agreement will enable both companies to stabilise their procurement of raw materials – including manganese ore – for Nippon Denko and to conclude a long-term sales and purchase agreement for ferromanganese produced by Nippon Denko.

BHP Manganese, Copper Capacity Back To Normal In March

BHP Billiton's manganese, copper production capacity will return to normal in March.
BHP stated that to satisfy the increasing demand, manganese ore production in the fourth quarter reached 1.54mln tons, up by 33% month on month, up by 9% over the same period last year, the total production for the second half of 2009 slipped by 17% year on year. In this quarter, the manganese alloy production is around 65%, the number of smelting furnaces to be resumed continuously increases with the recovery of demand, and it is expected that at the end of March, manganese ore can be produced with the full capacity. In the fourth quarter, manganese alloy yield was 131,000 tons, up by 108% than the third quarter, down by 28% than last year. In the second half year, the total production was 194,000 tons, gliding by 49% year on year.

As of copper, ClarkShaft transportation system broke for more than three months, BHP's wholly-owned lympicDam mine in Australia, remains 25% exploit ability. Currently, the repair of ClarkShaft is smoothly ongoing and it will be resumed in the first quarter. In the fourth quarter, copper production was 261,000 tons, plunging by 31% month on month, sliding by 45% year on year. Additionally, Chile's Spence mine produced 18,800 tons, down by 32%, sinking by 58% year on year. But because scondida strongly produced and LagunaSecaSAG produced with the full capacity after the overhaul, in the fourth quarter, BHP's copper production decreased by only 5%. In the second half year, the total copper production tumbled by 6% month on month to 555,000 tons, down by 10% year on year.

Besides, BHP's aluminum, nickel production is at the high level in the fourth quarter.

Alumar continued increasing production, in the fourth quarter, BHP's aluminum production went up by 12% than last quarter, up by 5% year on year. Alumina's output in the second half of 2009 was 1.78mln tons, up by 1% year on year, metal aluminum output was 62,300 tons, upwards by 1% year on year. Currently, Alumar's production rose to 3.6mln tons from 1.5mln tons per year, and it is predicted that it will operation with the full capacity by the end of June.

Driven by the increasing production of Australia's Kalgoorlie nickel mill, BHP's production in the fourth quarter moved up by 38% to 49,000 tons, up by 20% year on year. Nickel production for the second half year was 84,400 tons, up by 45% year on year.

BHP's lead production recovered 3% in the four quarter, hitting 63,073 tons, still down by 4% than the same period last year. The lead production for the half year was 124,433 tons, same as last year.

Its zinc output in the fourth quarter went up by 29% to 59,835 tons, up by 58% year on year. Its production for the half year was 106,260 tons, up by 33% year on year.

Source: Alibaba

Ant Hill Manganese Ore Vessel Departs For China

Mesa Mineralshas reported that the vessel carrying the second trial shipment of manganese ore from Ant Hill sailed from Port Hedland early this morning.

The Opal Amber, which is carrying the 18,006 tonne cargo, is scheduled to arrive in northern China early in February.

Managing Director Alan Scott said the second trial shipment, which is of medium manganese and relatively high iron content, was similar to what the company would anticipate to be its medium grade product offering.

"It was keenly sought after by a wide range of customers, confirming our view that the market will welcome both our high and medium grade products," Mr Scott said.

"The geographical spread of these two cargo destinations within China is indicative of the wide spread of potential buyers who wish to establish regular ore supply relationships with Mesa."

The interest expressed in both trial shipments is in part due to their excellent handling characteristics in part due to smelting performance and due to the process innovations developed by many Chinese customers to efficiently smelt high iron manganese ores.

The two trial shipments have effectively completed the ‘export ore dimension’ of the trial mining exercise carried out at Ant Hill, with remaining ore stocks earmarked for beneficiation or secondary processing at a later date.

The completion of the trial mining exercise represents another significant step forward in Mesa’s efforts to attain a sustainable income stream from the export of metallurgical grade manganese ores into the steel sector.

Importantly, Mr Scott said it also advances Mesa’s efforts to establish a second sustainable income stream from the domestic processing of low grade manganese ores mined in the Pilbara, into high grade manganese products consumed in other industry sectors, utilising the Company’s patented hydrometallurgical technologies.

"Given that all regulatory hurdles in the way of opening a new mine have now been overcome, our attention can now be focused upon the commercial decisions that are before us, if we are to see the great potential of this mining venture fulfilled," he said.

"In this regard, Mesa believes that it is possible to move the Ant Hill mine from its present ’mothballed’ state, to a fully operating mine site, in a relatively short period of time."

Source: Proactive Investor

Ukraine Ferroalloy Production Down By A Quarter In 2009

According to the Association of Ukrainian Ferroalloy Producers (UkrFA), in 2009 Ukraine registered a 25.2 percent decrease year on year in its ferroalloys production to 1.036 million mt.

Accordingly, in 2009, Ukraine's silicomanganese output decreased by 15.6 percent to 741,900 mt, its ferromanganese production went down by 64 percent to 129,400 mt, its ferrosilicon output increased by 7.4 percent to 150,300 mt, while its metallic manganese production went up by 75.6 percent to 15,100 mt, all compared to 2008.

SourcE: Stele Orbis

Output Down At Zaporozhye Ferroalloys Plant

During 11 months of 2009, Zaporozhye Ferroalloys Plant in Ukraine reduced its silicomanganese output by 54.6% to 102,400 tonnes, ferrosilicon (in recalculation to 45%) by 40.9% to 34,300 tonnes, ferromanganese by 46% to 47,500 tonnes. Production of metallic manganese increased by 58.1% to 13,600 tonnes.

In 2008 in comparison to 2007, ZFZ reduced its output by 21.4% to 386,200 tonnes, silicomanganese reduced by 29.9% to 227,100 tonnes, metallic manganese by 23% to 8,700 tonnes, ferrosilicon (in recalculation to 45%) by 14.5% to 60,400 tonnes, ferromanganese output increased by 5.5% to 90,000 tonnes.

The plant supplies 30% to 35% of its production to the local market, the rest goes for export to CIS, EU, Asia and Africa.

Source: Steel Guru

Steep Fall In Ukrainian Ferroally Production

According to the Association of Ukrainian Ferroalloy Producers, in January to October this year Ukraine registered a decreased of 41.5% YoY in ferroalloys production to 810,700 tonnes.

During the first ten months of 2009, Ukraine silicomanganese output decreased by 33.8%YoY to 582,000 tonnes, ferromanganese production went down by 72.6% YoY to 98,500 tonnes, ferrosilicon output dropped by 15.9% YoY to 117,800 tonnes while metallic manganese production increased by 44.2% YoY to 12,400 tonnes.

According to the preliminary data, in January to October this year the largest Ukrainian ferroalloy producer Nikopol Ferroalloy Plant reduced its ferroalloy output by 36%YoY to 520,700 tonnes including 463,400 tonnes of silicomanganese down by 16.6% YoY and 57,300 tonnes of ferromanganese down by 77.7% YoY. Since the beginning of the year, the plant has not produced any other ferroalloys.

Source: Steel Guru

OMM Now One Of World's Biggest Manganese Companies

Record production has transformed WA-based resources group OM Holdings into one of the world's biggest manganese companies.

It today reported a record quarterly production of 205,372 tonnes and a record monthly production in July of 77,398 tonnes - a 25 per cent jump in tonnages and a 31 per cent leap in manganese unit production compared with the previous quarter - from its flagship Bootu Creek mine near Tennant Creek in the Northern Territory.

OM Holdings also reported plunging production costs as yields and production increased. The cost is at $3.20 a metric ton - the lowest in the mine's history - while overall third-quarter costs are $3.80, down 20 per cent on the second quarter and 44 per cent lower than the first quarter of this year.

A second processing plant, now close to completion, will push production to more than 1 million tonnes a year.

It has forecast the fourth-quarter production at 280,000 tonnes at 38 per cent manganese. Shipping and sales is expected to be 240,000 tonnes, up from 185,385 tonnes in the third quarter.

The company's wholly-owned Qinzhou smelter in China processed and sold 10,527 tonnes of high-carbon ferro manganese in the third quarter - up three-fold on the previous quarter - as Chinese demand for the metal increased.

This smelter is to be complemented by a new sinter ore plant that is expected to be commissioned at the end of this year.

OM Holding's chief executive, Peter Toth, says 2010 will be an exciting year as it benefits from the completion of plant upgrades and additions.

In a deal worth $294 million, the company has also bought a 49.9 per cent interest in South Africa's Tshipi Kalahari manganese project.

Subject to shareholders approval, OM Holdings will buy out five co-investors in the project in return for 139.9 million OM Holdings shares.

The company will also pay $49.2 million for a 20 per cent interest in Ntsimbintle Mining which owns the remaining 50.1 per cent of the Tshipi project.

``The proposed transaction will propel OMH into the league of leading manganese producers with a diversified, long-life, high-grade and low-cost ore resource supported by full participation across the entire manganese value chain, including the China-focused marketing and distribution network,'' says Mr Toth.

OM Holdings also has exploration potential at Bootu Creek over the tenement's 3326sq.km and has a 12 per cent share in Shaw River Resources - which is exploring for manganese in WA - and a 10 per cent stake in Territory Resources which operates the Frances Creek iron ore mine in the Northern Territory.

Source: Perth Now

$65 Million Manganese Smelter Planned For Indonesia

Two regional governments in East Nusa Tenggara (NTT) province have signed an agreement with consortium Mangan JSK International Co. Ltd and PT AGB Mining, to establish a Rp 650 billion (US$65.5 million) manganese smelter.

An email statement from the Energy and Mineral Resources Ministry said the NTT provincial government and the Kupang regency government had signed the agreement on Wednesday.

"The smelter will produce Ferro Manganese, Silicon Manganese and Ferro Nickel Chrome, among others," the statement said.

The products can be used for steel, batteries, ceramics and the production of chemicals. The plan will cover activities in surrounding regencies with a volume of about 1,000 tons a month, and a smelter construction with an installed capacity of 60,000 tons a year.

The Mangan consortium includes local and foreign companies: PT. AGB Mining, PT. Pusaka Pertambangan Mina, PT. Berkah Kencana Sakti, CV. Jasindo Utama and South Korea's J.S.K. International Co. Ltd

Source: Jakarta Post