American Manganese Inc.: Chinese EMM Market Review Identifies Supply/Demand Window for New Western Production and Project Update

- November 30th, 2011

American Manganese Inc. (TSXV:AMY,FWB:2AM) announced the Company has received the report titled: “A Study of Electrolytic Manganese Metal (EMM) Industry and China’s Dominating Effects to the Global Market”, prepared by JF Zhang Associates of Vancouver, BC Canada.

American Manganese Inc. (TSXV:AMY,FWB:2AM) announced the Company has received the report titled: “A Study of Electrolytic Manganese Metal (EMM) Industry and China’s Dominating Effects to the Global Market”, prepared by JF Zhang Associates of Vancouver, BC Canada.

As quoted in the press release:

Highlights of the Report Include:

  • China electrolytic manganese metal (EMM) production is to be consolidated;
  • China to find balance of EMM production, protect environment and depleting resources;
  • China leading in steel and EMM production;
  • EMM production costs are rising in China;
  • Necessity of EMM production in western countries

The Company expects to receive an update shortly from Kemetco regarding the results of the final three tests of the nano-filtration, chilling unit, and electroplating and metal production unit operations.

These results will be incorporated into the pre-feasibility study being conducted by Wardrop Engineering (A Tetra Tech Company) which is not expected until mid-February, 2012.

American Manganese President and Chief Executive Officer, Larry W. Reaugh, said:

“The report confirms that Chinese EMM production capacity will likely decline to between 1.3 and 1.5 million tonnes as a direct result of imposed industry consolidation; while the demand for EMM metal could increase from about 1.3 million tonnes today to over 2.6 million tonnes by 2015. The increased demand appears to be driven by the rapidly growing domestic use of high quality specialty steels and 200 Series stainless steel products. The report also highlights that the era of low cost Chinese production is over due to: Depleting resources and declining head grades; rapidly rising labour and energy costs; and increased capital intensity for new Chinese projects to meet much higher regulatory compliance thresholds for increased energy efficiency, safety and environmental protection.”

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