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![Black Canyon](https://investingnews.com/media-library/black-canyon.png?id=33778378&width=1200&height=813)
High-Grade Manganese Rock Chip Samples Up To 54% Mn At The Wandanya Project
Australian manganese explorer and developer, Black Canyon Limited (Black Canyon or the Company) (ASX: BCA) is pleased to announce that reconnaissance mapping and rock chip sampling completed over the Wandanya Project has identified high-grade manganese mineralisation.
- Reconnaissance sampling over the Wandanya (E46/1407) tenement (BCA 100%) has delivered high-grade surface rock chip samples up to 54% manganese (Mn).
- Two samples taken 100m apart (across strike) returned 52.9% and 54.3% Mn from an outcrop that is approximately 300m long and 150m wide at the W2 prospect.
- Other samples targeting manganese across the tenement ranged between 12.2% and 33.5% Mn.
- No previous surface sampling or historic drilling has been completed over the outcropping mineralisation.
- Future exploration plans include additional mapping, sampling and gradient array IP (GAIP) to generate drill targets.
Black Canyon’s Executive Director Brendan Cummins said:
“The high-grade manganese rock chip results encountered over the Wandanya Project contain approximately 20% more manganese than previous surface mineralisation we have sampled related to manganese enriched shales which commonly range between 25 and 35% Mn. The 50% plus Mn grades at Wandanya are more akin to those related to hydrothermal or contact style manganese enrichment which presents a new targeting opportunity for the Company.
“These early results are very encouraging given the grade of samples and similarities in geological setting to the Woodie Woodie manganese mine. The outcrop is approximately 300m long and 150m wide and to the north there appears to be further mineralisation that will be followed up with mapping and additional sampling.”
Figure 1. Sample site W003 – 52.9% Mn showing manganese enrichment on tenement E46/1407 at prospect W2.
Wandanya Manganese Mineralisation
The high-grade manganese mineralisation encountered at the W2 prospect outcrops over 300m strike and is up to 150m wide forming a gently sloping rounded hill. The mineralisation has been mapped as a mixed manganese dominant ferruginised breccia, with some relict bedding and hosted by dolomite. The area is structurally complex with multiple NE and NW-trending cross cutting faults mapped from aerial imagery. Further work is planned to evaluate the significance of the discovery which will include the evaluation of sub-cropping manganese mineralisation interpreted to the north and along strike that extends discontinuously for a further 1 to 2km.
Click here for the full ASX Release
This article includes content from Black Canyon, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
How to Invest in Manganese Stocks (Updated 2024)
Manganese is an important industrial metal. More than 90 percent of global consumption is closely tied to the steel and construction sectors, and China is a major consumer of the commodity.
The metal is also used in the most common form of lithium-ion batteries, ones using nickel-manganese-cobalt (NMC) cathodes.
Despite its solid demand base, the manganese price has been a victim of volatility in the past few years. COVID-19 lockdowns, extreme weather events and Russia's war in Ukraine slowed manganese production, leading to price surges. However, more recently China's slower economic recovery has tamped down on steel demand, placing downward pressure on manganese prices.
Moving forward, analysts are expecting China to see a strong infrastructure-focused economic rebound, alongside increasing demand from government-funded infrastructure projects in India and the US, presenting a more positive outlook for manganese.
Read on for a closer look at manganese supply and demand dynamics, an overview of why the metal could be a compelling investment choice in the coming years, and manganese mining companies and junior stocks to consider.
What factors impact manganese supply and demand?
As mentioned, the steel sector accounts for most manganese demand, using it as a deoxidizing and desulfurizing additive and as an alloy constituent. Among other things, manganese can improve the strength, toughness and stiffness of steel. In turn, the steel sector is a key driver of the manganese price.
According to a report from Maximize Market Research, the global manganese alloy market is projected to reach US$29.21 billion by 2030; its growth will be driven largely by rising demand from the automotive industry and growing usage of manganese alloys in the Asia Pacific region.
The electric vehicle (EV) battery industry is the second largest consumer of manganese today, and many market watchers believe that demand from this sector could be set to increase in the future.
Manganese dioxide has long been used as a depolarizer in alkaline batteries, but this is not the manganese battery market that is now the most interesting. Attention is being drawn to lithium-ion battery chemistries that require manganese — such as lithium-manganese oxide batteries and nickel-manganese-cobalt oxide batteries.
“Several high-manganese rechargeable battery chemistries have been developed in recent years, but many will only enter mass production in Q4 2023 and 2024,” Andrew Zemek of CPM Group told INN. “This should reduce the current surplus of high-purity manganese sulfate and lift the prices from their doldrums.”
In these batteries, electrolytic manganese dioxide is used as a cathode material. Many investors who believe that battery sector demand for manganese will increase are optimistic that lithium-ion batteries that require manganese will become more common in the future.
“Project Blue foresees sustained growth in demand for manganese in EVs over the medium term, as sales of EVs are projected to increase significantly due to governmental pressure to transition to low-emission fleets,” the team told INN in an email.
While the steel and EV battery industries are the top consumers of manganese, other uses of manganese exist as well, with the metal turning up in chemicals and more.
Looking at supply, major producers have manganese-mining operations in Australia, Gabon, Ghana and China, as well as South Africa, which holds 37 percent of the world’s reserves. Global manganese production reached 20 million metric tons in 2023, a slight decrease of 200,000 metric tons from 2022, as per the US Geological Survey.
Manganese mining companies and junior manganese stocks
As the manganese story has picked up speed in recent years with its necessity to popular electric vehicle cathodes, more publicly traded companies are focused on manganese, offering investors more choices for exposure to the metal.
While a number of large companies are involved in manganese production, many of them are private. These are some of the major mining companies that produce manganese:
- Eramet (EPA:ERA) produces manganese ore from the Moanda mines in Gabon. Eramet is the largest producer of manganese worldwide and also produces manganese alloy at its plants in four countries.
- South32 (ASX:S32,OTC Pink:SHTLF) operates the South Africa Manganese operation in South Africa's Kalahari Basin and has a 60 percent stake in the GEMCO manganese operations in Australia's Northern Territory.
- Anglo American (LSE:AAL,OTCQX:AAUKF) owns the remaining 40 percent of the GEMCO manganese joint venture in Australia.
Investors interested in smaller manganese companies may want to look at junior manganese stocks trading on Canadian, American and Australian exchanges. These are some of the options available to investors:
- ChemX Materials (ASX:CMX)is developing its Jamieson Tank high-purity manganese project in South Australia.
- Element 25 (ASX:E25,OTC Pink:ELMTF) is considering restarting operations at its Butcherbird manganese project in Western Australia.
- Euro Manganese (TSXV:EMN,OTCQX:EUMNF) is developing its Chvaletice manganese project in Czechia, which aims to recycle tailings from a past-producing mine to produce manganese and decontaminate the site.
- Firebird Metals (ASX:FRB) aims to produce high-purity manganese from its Oakover project in Western Australia, and to process it into battery-grade manganese sulfate.
- Giyani Metals (TSXV:EMM) has a portfolio of manganese oxide projects in Botswana, including its flagship K.Hill project, from which it plans to produce high-purity manganese sulfate monohydrate.
- Jupiter Mines (ASX:JMS) operates the Tshipi Borwa manganese mine in South Africa.
- Manganese X Energy (TSXV:MN,OTC Pink:MNXXF) is exploring its Battery Hill manganese project in New Brunswick with the goal of producing high-purity manganese for the North American market.
- OM Holdings (ASX:OMH,OTCQX:OMHI) is a vertically integrated manganese ore and ferroalloys company based in Singapore with global operations.
- RecycLiCo Battery Materials (TSX:AMY,OTCQB:AMYZF) recycles cathode materials from battery waste and upcycles them into lithium and battery cathode precursors.
This is an updated version of an article originally published by the Investing News Network in 2017.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: ChemX Materials and RecycLiCo Battery Materials are clients of the Investing News Network. This article is not paid-for content.
Top 10 Manganese-producing Countries (Updated 2024)
Market volatility has become the norm for the top manganese-producing countries in recent years.
Last year, manganese prices trended downward for much of the year on a growing supply overhang amid weakening demand from the global steel market, especially in China, which is suffering from a property sector slump.
The first quarter of this year was more of the same for the beleaguered manganese market. However, the price of manganese received a big boost as stockpiles began to deplete in Q2 following Tropical Cyclone Megan significantly damaging South32's( ASX:S32,OTC Pink:SHTLF) Groote Eylandt Mining Company (GEMCO) manganese mine in Australia.
Looking forward, analysts are pinning further support for manganese prices on China's ability to right its economic ship. There's also much to be said for the potential in battery as a positive force moving into the future as the green energy transition progresses. Benchmark Mineral Intelligence projects that demand for manganese will increase by eight-fold over the next decade on rising demand for electric vehicle batteries.
What are the uses of manganese?
While the steel industry is the primary end user of manganese metal, consuming it as an alloy to enhance the strength and workability of the key construction material, manganese is also mixed with aluminum to manufacture tin cans.
Aside from that crucial application, manganese dioxide and manganese oxide are often used as cathode materials in the production of zinc-carbon and alkaline batteries. Additionally, after crude oil is refined, manganese may be used as an additive to help coat and protect a car’s engine.
And, as mentioned, one of the most promising uses of manganese is in the lithium-ion battery sector. The silvery metal is used to make lithium-nickel-manganese-cobalt oxide, which is known to improve energy loading and lifespan. Batteries using this mineral composition are in high demand from the electric vehicle sector.
Manganese production by country
As the manganese market continues to develop, it’s useful to learn about the top manganese countries, including South Africa, Gabon and Australia.
South Africa is particularly notable, as it is the source of 36 percent of the manganese production in the world. Interestingly, South Africa is also home to almost 38 percent of global manganese mineral reserves, although many other countries are significant manganese producers with sizeable reserves.
Below the Investing News Network has compiled a brief overview of the 10 top manganese-producing countries in 2023. All stats on manganese production by country are taken from the US Geological Survey’s (USGS) most recent report on the metal.
1. South Africa
Mine production: 7.2 million metric tons
South Africa is the world’s largest producer of manganese in the world by a long shot, with manganese output of 7.2 million metric tons last year, down 100,000 MT compared to 2022. The country also holds the largest reserves of manganese at 600 million metric tons, and 70 percent of the world’s known manganese ore resources.
South32 is a major presence in the South African manganese industry. The diversified miner also produces bauxite, alumina and thermal and metallurgical coal, as well as other in-demand minerals.
The company holds the South Africa Manganese operation in the manganese-rich Kalahari Basin. The operations consist of the open-pit Mamatwan mine, the underground Wessels mine and the Metalloys manganese alloy smelter.
Jupiter Mines (ASX:JMS) is also operating in the area at its Tshipi Borwa mine. Tshipi Borwa is considered the largest manganese mine in South Africa and the third largest in the world.
2. Gabon
Mine production: 4.6 million metric tons
Located on the central-western coast of Africa, Gabon was the second highest manganese-producing country in 2023. The country produced 4.6 million metric tons of manganese last year, a drop of 70,000 MT compared to 2022.
Moanda is a key manganese operation in the country. ERAMET (EPA:ERA), the world’s second largest miner of high-grade manganese ore, operates the mine through its subsidiary COMILOG. The August 2023 military coup in Gabon temporarily halted manganese-mining activities for ERAMET, but production has since resumed.
3. Australia
Mine production: 3 million metric tons
Australia’s manganese production was also nearly flat in 2023, as the country produced 3 million metric tons of manganese compared to 2022's 3.04 million MT.
As the largest producer of manganese ore, South32 has a 60 percent stake in the GEMCO manganese operations in the Northern Territory. The open-cut manganese mine is one of the world’s lowest-cost manganese ore producers. Anglo American (LSE:AAL,OTCQX:AAUKF) holds the other 40 percent interest in GEMCO.
South32 anticipates the damage to its wharf operations brought on by Tropical Cyclone Megan will restrict export sales until at least the first quarter of the 2025 calendar year.
South32 and Anglo American previously owned the Tasmanian Electro Metallurgical Company (TEMCO) alloy smelter, but sold the facility to GFG Alliance in 2021.
4. Ghana
Mine production: 840,000 metric tons
Ghana’s 2023 manganese output weighed in at 840,000 metric tons, on par with what it produced in 2022. Most manganese mined in Ghana comes from the western region around the city of Takoradi.
Consolidated Minerals, better known as Consmin, holds a 90 percent stake in Ghana Manganese Company, which runs the Nsuta mine. Consmin, a subsidiary of Ningxia Tianyuan Manganese Industry (TMI), is one of the four largest producers of manganese in the world by volume.
Manganese ore from the operation was traditionally destined for the electrolytic manganese metal market, much of it as captive supply for TMI’s China-based operations.
TMI has partnered with the Ghanaian government to construct a US$450 million manganese refinery as part of the country's goal to boost its economy with value-added products like battery-grade manganese and increase revenues from manganese from 27 percent to 40 percent.
5. China
Mine production: 740,000 metric tons
China was the fifth largest producer of manganese in 2023 with 740,000 metric tons of the battery metal, a sizeable decrease from the 1.34 million MT it produced in 2020. Much of this decline can be attributed to COVID-19-related disruptions and more recently production cuts on lower demand from the country's property sector.
As mentioned, the country is not only a player in manganese ore production, but also a major consumer of manganese as it uses large amounts of the metal in steelmaking.
Several large manganese deposits were reportedly discovered in Guizhou province in 2017, but have yet to be advanced. They are not counted by the US Geological Survey, which places China’s manganese reserves at 280,000 MT — the second largest globally.
6. India
Mine production: 720,000 metric tons
In 2023, India was the sixth largest producer of manganese with 720,000 metric tons, making it another country on this list with flat production levels year-over-year.
As with China and Brazil, India is one of the leaders in manganese consumption. The vast majority of India’s manganese goes to the production of steel. State-owned MOIL is India's largest manganese producer and controls the country's only electrolytic manganese dioxide (EMD) manufacturing plant. In 2023, the company posted all-time high record EMD production.
7. Brazil
Mine production: 620,000 metric tons
Brazil produced 620,000 metric tons of manganese in 2023, just 4,000 MT lower than its output in 2022. Major miner Vale (NYSE:VALE) was previously the largest manganese miner in the country, accounting for 70 percent of the market. However, in 2022 the company offloaded its Center-West manganese and iron ore assets in Brazil to J&F Investimentos, whose subsidiary Lhg Mining now operates them.
In the first half of 2023, Lhg announced plans to resume manganese operations in Brazil and expanding the workforce. In October last year, J&F shared plans in its budget to invest US$1 billion in the iron and manganese operations.
Buritirama Mining, a subsidiary of Grupo Buritipar, is another large manganese producer in Brazil. The company plans to make a significant investment of US$200 million to expand operations at its Para state mine.
8. Côte d’Ivoire
Mine production: 390,000 metric tons
The West African nation of Côte d’Ivoire put out 390,000 metric tons of manganese in 2023; that’s nearly on par with the 394,000 MT in the year prior. However, the 2023 figure is down significantly from the 525,000 MT produced in 2020.
Côte d’Ivoire's manganese exports make their way to steel-producing giant China. In January 2024, Reuters reported that with investments from the China National Geological and Mining Corporation, the country plans to boost its manganese production to around 1 million metric tons of ore within three years.
9. Ukraine
Mine production: 320,000 metric tons
Ukraine is the world's ninth largest producer of manganese with 320,000 metric tons. The country's 2023 output was down by 3,000 MT compared to 2022’s numbers.
"Two manganese ore producers in Ukraine suspended operations (in 2023)," the USGS reported. "One of them suspended operations owing to rising operational costs, whereas the other suspended operations owing to Russian shelling that endangered operations."
As with some of the other countries on the list, Ukraine is also a major importer of manganese products, specifically manganese ore.
The country is among the top five for largest reserves of manganese ore in the world, at 140 million MT. The country’s Nikopol basin holds about a third of the explored reserves. Ukraine also has significant iron ore, coal and titanium deposits.
10. Malaysia
Mine production: 250,000 metric tons
Malaysia rounds out the list of top manganese-producing countries with output of 250,000 metric tons of manganese in 2023, a small increase from the 247,000 MT produced in the previous year. The country recently emerged on the scene as a new hub for manganese ferroalloy production.
Malaysia’s manganese production accounts for 20 percent of US imports, as per the USGS. OM Sarawak, a subsidiary of Singapore-based manganese and silicon metals company OM Holdings (ASX:OMH,OTCQX:OMHI), owns a ferrosilicon and manganese alloy smelter in Malaysia. The smelting complex produced 294,432 metric tons of manganese alloy in 2023.
Potential manganese deposits
There are a number of mining companies interested in developing manganese resources, and others working in exploration to target new deposits. Mining for manganese is one way to recover the metal, and scouring the seafloor is another way to source this valuable construction and battery metal.
According to the London School of Economics, manganese nodules cover thousands of square kilometers on the ocean floor. The metal-bearing nodules are primarily composed of manganese; however, they also contain nickel, cobalt and copper, making them a potentially lucrative diversified mineral resource.
FAQs for manganese
Is manganese a metal?
Manganese is considered an important industrial metal. With the atomic number 25, it is a hard, brittle, silvery metal that is only second to iron among the transition elements in its abundance in Earth’s crust.
What function does manganese dioxide have in batteries?
Manganese dioxide has long been used as a depolarizer in alkaline batteries, but this is not the manganese battery market that is now the most interesting. Attention is being drawn to lithium-ion battery chemistries that require manganese — such as lithium-manganese oxide batteries and lithium-nickel-manganese-cobalt oxide batteries.
In these batteries, electrolytic manganese dioxide is used as a cathode material. Investors who believe battery sector demand for manganese will increase are optimistic that lithium-ion batteries that require manganese will become more common in the future.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Infill Drilling Completed at Butcherbird Targeting Reserve Extension to Support Expansion
Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to advise that resource infill drilling has been completed at the Company’s 100%-owned Butcherbird Manganese Project (Butcherbird or Project). E25 recently completed a Feasibility Study (FS) to support the Butcherbird Expansion Project, which is targeting a nominal 1.1 million tonnes per annum of manganese concentrate production1.
Current reserves are based around mineral resources within granted mining lease M52/1074, of which less than half has been drilled to a sufficient density to meet the requirements for measured and indicated classifications. The balance is classified as inferred. The additional drilling will provide infill data to better define and potentially convert these areas to indicated or measured categories to support the re-estimation of mine reserves. The increase in the “reserve tail” will support project financing activities with NAIF and other potential financiers who are currently undertaking project expansion due diligence2.
HIGHLIGHTS
- 207 percussion drill holes have been completed for 6,202m targeting infill of existing inferred resources.
- All samples have been dispatched to Bureau Veritas for assay with results pending.
Figure 1: Aerial photograph of the resource infill drilling rig with support vehicles and personnel.
The Project hosts a global resource of over 260Mt of manganese ore3 however the current reserves are limited to the areas which have been drilled out to measured and indicated classifications which are required as the basis for a statement of reserves. The current drilling programme was designed to infill existing inferred resources to a sufficient data density, based on variographic analysis, to convert the inferred resources within granted mining lease M52/1074 to indicated and/or measured.
The additional drilling information, combined with historical data, will be used to recalculate the resource base to support a recalculation of the proved and probable reserves to support project financing activities for the Butcherbird Expansion Project by increasing the “reserve tail”. Samples have been submitted for assay with results pending.
Figure 2: Drillhole collar location plan summarising existing and proposed drillhole collar locations.
Element 25 Managing Director Justin Brown said:
“This drilling programme will allow the global resource at Butcherbird to be recalculated with a higher degree of certainty which is expected to result in a signification conversion of inferred resources to measured and indicated classifications to increase the reserve tail in support of the planned ramp up to 1.1Mt production rates.”
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Element 25 Extends Share Purchase Plan
Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) advises that the closing date for the current Share Purchase Plan (SPP)1 will be extended until 5:00pm, Wednesday, 26 June 2024 Australian Western Standard Time (AWST).
- Extension of Element 25 Share Purchase Plan with revised closing date, Wednesday, 26 June 2024 at 5:00pm AWST.
- Funds raised from the Share Purchase Plan will enable the Company to progress its current prime projects at the Butcherbird mine site (located in the southern Pilbara region of Western Australia), as part of the Butcherbird Stage 2 Expansion Project, as well as continuing to support the high purity manganese sulphate monohydrate (HPMSM) project to be built in Louisiana, USA in partnership with General Motors LLC and Stellantis NV.
- Shareholders can request an electronic copy of their personalised Share Purchase Plan form via Element 25’s share registry, Automic Group.
Under the SPP, the Company will offer eligible shareholders, who were registered shareholders as at 5:00pm (AWST) on Monday, 20 May 2024 (Record Date) the opportunity to apply for up to $30,000 of new fully paid ordinary shares (New Shares). New Shares will be issued at $0.27 per share, equivalent to a 14% discount to the volume weighted average price (VWAP) of Element 25 shares over the last five trading days prior to the announcement of the SPP1.
A revised indicative timetable with the new closing date for the SPP is as follows:
REVISED SPP TIMETABLE
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
E25 Investigates Butcherbird Restart Options Amid Record High Manganese Ore Prices
Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to provide an update on activities to investigate the potential to recommence operations at the Company’s 100%-owned Butcherbird Manganese Project in Western Australia (Butcherbird) to take advantage of recent upward movement in manganese ore prices caused by market factors including disruptions at South 32 Limited’s Groote Eylandt (GEMCO) operations1. This may include the sale of stockpiles and or recommencing processing of run-of mine (ROM) stockpiles.
HIGHLIGHTS
- Manganese ore prices rise to four-year highs to U$8.30/dmtu for 44% cif Tianjin, China1.
- E25 operations team and Board investigating opportunities to process ROM and low-grade stockpiles at Butcherbird.
- If operationally feasible, ore production at current prices presents an opportunity to generate short-term cash flow.
GEMCO’s Groote Eylandt Mine typically produces more than 6M tonnes of high-grade manganese ore a year, and damage to the mine’s haul road and ship loading facilities from Tropical Cyclone Megan in March 2024 has resulted in a forecast supply disruption of up to twelve months. GEMCO is currently targeting a production restart in Q3 2025.2
Figure 1: Manganese ore index – Yuan/dmtu Tianjin Port1. Butcherbird Expansion Feasibility Study parameters also shown3.
The loss of GEMCO supply coupled with political instability in South Africa has resulted in a significant and rapid increase in manganese ore prices due to increased competition for available supply. This presents an opportunity to potentially sell stockpiles that are of a lower grade, preventing their previous sale at lower prices but which may be profitable to ship now.
Additionally, ROM stockpiles that have been mined but not yet processed are available at site. The cost structure of a restart is not currently defined, however E25’s Board recognises the potential opportunity of selling existing product stockpiles and/or recommencing the processing of ROM stockpiles at Butcherbird to produce material for sale at current elevated prices. If viable, these activities will occur in parallel with and will not impact the expansion plans for the Butcherbird Project. E25 suspended Butcherbird production in early 2024 during a period of depressed ore prices while readying for an upgrade of facilities to achieve a nominal 1.1Mpta manganese concentrate production, as outlined in a Feasibility Study completed on January 20243.
The expansion of Butcherbird production aligns with E25’s strategy to produce high-purity manganese sulphate monohydrate (HPMSM) at a facility planned to be built in Louisiana, USA, in partnership with global automakers General Motors LLC and Stellantis NV4.
Element 25 Managing Director Justin Brown said:
“A potential restart of Butcherbird’s processing operations at these increased manganese ore prices on a de-risked basis may be an ideal opportunity to monetise existing stockpiles and generate short-term cashflow. E25 looks forward to updating the market further as these investigations are completed and we will continue to monitor ore markets in the meantime to optimise any potential opportunities that may arise.”
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Manganese in Australia (Updated 2024)
Manganese is a hard, silvery metal with many uses in the world driving demand today. Manganese mines in Australia are working to meet that demand.
Despite being brittle, it adds strength and wear-resistance to metals like iron. It can be used to make glass and ceramics, and manganese sulphate is even used as a fungicide. Manganese is also an essential mineral in our diets, and is found in bones as well as organs like the kidneys, liver and brain.
But most substantially, manganese is used in the Australian and global industrial metals sector. Right now, about 85 to 90 percent of manganese demand comes from the steelmaking sector, including ironmaking.
Manganese in Australia: Battery market applications
While manganese is most commonly used in the steel and construction industries, the rechargeable battery sector is the second biggest demand sector of manganese. Nickel-manganese-cobalt (NMC) batteries are one of the most commonly used types of lithium-ion battery in hybrids and electric vehicles (EVs) today, as they have a have a high cycling rate, high capacity and high power, as well as a low self heating rate. Lithium-manganese-iron-phosphate (LMFP) batteries are also growing in popularity as they are more affordable than NMC batteries while bringing the energy density benefits of manganese to the lithium-iron-phosphate (LFP) formula.
Much of the world is slated to move toward EVs and hybrid cars, which may lead to a significant rise in demand (and prices) for production from manganese mines in Australia. Additionally, support for electrification and critical metals from many Western governments will be another factor driving their adoption. Not to mention China, which is currently one of the biggest suppliers and buyers of manganese, promises to phase out gas-burning cars entirely by 2035.
Manganese in Australia: Outlook for 2024
Manganese prices may be heavily driven by the steel sector, but it is the EV battery industry that has investors excited about manganese’s future.
In fact, demand for manganese sulphate is expected to double in the next 10 years thanks to the lithium-ion battery market. Though the steel sector will still be the biggest consumer of manganese, the battery industry is expected to impact the manganese supply chain.
While this industry is likely the fastest-growing player in the manganese production market, there are other industries to consider. For instance, the micronutrient market, which includes high-purity manganese, is expected to reach a market size of US$9.03 billion by 2032 compared to 2023's US$4.87 billion.
As mentioned, the alloy demand in the steel sector is huge. The manganese alloy industry was valued at US$20.61 billion in 2023, and it is expected to grow at a compound annual growth rate of 5.11 percent to reach US$29.21 billion in 2030, according to Maximize Market Research. This growth will be driven by increasing demand from both the steel industry and EV market.
Still, despite this increasing demand, manganese prices have been volatile over the last few years. Looking at the overall market for manganese in 2024, supply and demand should be broadly in balance, although there may be pinch points during the year, according to analysts at Project Blue.
“We expect ore prices to remain under pressure moving into 2024 due to the uncertainty facing the Chinese steel and construction market,” they wrote. The firm sees Chinese domestic demand supporting higher ore and alloy prices in the short term, and a potential global economic recovery in 2024 returning prices to a cost-driven level in the medium term.
“Thereafter, our price forecast is more driven by fundamentals and the need for new capacity to be developed,” the analysts added. “We expect prices in China to rise in the second half of the decade.”
Manganese mines in Australia
South Africa, Gabon and Australia are the world’s largest producers of manganese, and combined they hold about 61 percent of global reserves.
Australia is the third largest producer of manganese, putting out about 3 million tonnes per year. These manganese exports bring around AU$2 billion to the country every year. Although Australia has a large role in the global manganese market, production of the metal in Australia is relatively recent; it wasn’t mined there until 1965.
Australia's key manganese ore mines are Woodie Woodie, Groote Eylandt and Bootu Creek. Woodie Woodie is located in Western Australia and is operated by privately owned Consolidated Minerals. Groote Eylandt in the Northern Territory is operated by the Groote Eylandt Mining Company (GEMCO), a joint venture 60 percent owned by South32 (ASX:S32,LSE:S32,OTC Pink:SHTLF) and 40 percent owned by Anglo American (LSE:AAL,OTCQX:AAUKF). Also in the Northern Territory, Bootu Creek is owned by OM Holdings (ASX:OMH,OTCQX:OMHI) and has been on care and maintenance since January 2022.
South32 and Anglo American are both significant companies in the manganese space, with operations in top producer South Africa and other countries.
The Australian manganese market has faced a few ups and downs over the years. Most recently, operations at Groote Eylandt were suspended in mid-March 2024 following the destruction caused by tropical cyclone Megan making landfall in Australia’s Northern Territory.
The storm's impact on critical infrastructure at South32's manganese site included the wharf from which the company shipped its manganese ore as well as a haulage bridge that connected mining areas to processing facilities. South32's management is looking to January to March 2025 for the full resumption of activities at Groote Eylandt.
Australian manganese projects and plants
In terms of advanced-stage manganese projects under development in Australia, Black Canyon (ASX:BCA) holds a substantial land package in Western Australia including across the Balfour manganese field and the Oakover Basin. The company’s global mineral resource across the Balfour manganese field totals 314 million tonnes at 10.5 percent manganese for contained resources of 33.1 million tonnes of manganese.
During 2023 flowsheet testing at its Balfour manganese field project, Black Canyon produced its first batch of battery-grade high-purity manganese sulphate monohydrate (HPMSM) from manganese oxide samples taken from the KR1 deposit at Balfour. HPMSM is an important component of lithium-ion battery cathodes. Black Canyon is working to establishing a battery-grade manganese plant in Australia with a large-scale HPMSM pilot project to begin this year.
Other manganese companies with advanced development projects in Western Australia include Element 25 (ASX:E25) and Firebird Metals (ASX:FRB).
Element 25 is in the midst of advancing on a stage 2 expansion project at its wholly owned Butcherbird manganese operation to bring production up to approximately 1.1 million tonnes per year of high silica manganese ore. The company is working in partnership with General Motors (NYSE:GM) and Stellantis (NYSE:STLA) to construct a battery-grade HPMSM refinery in Louisiana, US, to produce up to 135,000 tonnes per year of high-purity manganese sulphate monohydrate for the US electric vehicle market using material recovered at Butcherbird.
Firebird Metals’ Oakover high-purity manganese project hosts a mineral resource estimate of 172 million tonnes at 9.9 percent manganese and an indicated resource of 105.8 million tonnes at 10.1 percent manganese. According to a recent scoping study, the site could host production of 1.2 million tonnes per year of manganese concentrate with an 18 year mine life.
Firebird is also integrating a downstream processing facility in China to produce battery-grade high-purity manganese sulphate for the LMFP battery market. In late May 2024, the company announced it has received the safety permit for Stage 1 of its China-based manganese sulphate plant in China. Stage 1 operations are slated to begin in late 2025 and will be fed with third party manganese, while Stage 2 is planned to be fed with manganese from Oakover.
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This is an updated version of an article first published by the Investing News Network in 2022.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Firebird Metals and Element 25 are clients of the Investing News Network. This article is not paid-for content.
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