Manganese Matters n° 8(Issued April30, 2015)1

The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.

Article Index3

IMnI UPCOMING MEETINGS

OHES Committee Meeting

Tuesday, May 19

10:00 to 15:30

Spain

EPD General Assembly

Tuesday, June 16

08:00 to 09:00

Shanghai

M&C Committee Meeting

Tuesday, June 16

09:05 to 10:30

Shanghai

Statistics Committee Meeting

Tuesday, June 16

10:35 to 12:30

Shanghai

Supervisory Board Meeting

Tuesday, June 16

15:10 to 17:40

Shanghai

International Manganese Institute

17 rue Duphot

75001 Paris

France

Tel: +33 (0) 1 45 63 06 34

Fax: +33 (0) 1 42 89 42 92

E-mail:

Web site:

IMnI 2015 Annual Conference & EPD Conference

Back-to-Back in China in June

Register Now!

IMnI is hosting its two flagship events – the Annual Conference and the EPD Conference – back-to-back this coming June in China, to encourage members to attend both.

The 41st ANNUAL CONFERENCE will take place Tuesday, June 16 -- Thursday, June 18 in Shanghai at The Portman Ritz-Carlton. This year’s theme: China at the Crossroads: Into the Mouth of the Dragon. A line-up of world-class experts and speakers will be presenting, including James Kynge, Financial Times Emerging Markets Editor and author of "China Shakes the World: The Rise of a Hungry Nation".

The 12th EPD CONFERENCE is scheduled for Friday, June 12 at the Four Points Hotel, Shenzhou Peninsula, Hainan Province. This is the sole annual meeting of producers of Mn Metal and Mn Dioxide produced electrolytically and provides an excellent forum for Mn ore producers to network with them and learn more about their industry.

Registration forms and more information on both conferences can be found here

To bridge the two conferences, IMnI is proposing Technical Tours to two of China's Top Mn Smelters: Jinneng Alloy Operations - Fengyu Ferroalloy Co. Ltd on , Sunday, June 14 and Jiaocheng Yiwang Ferroalloy on Monday, June 14. Information can be retrieved here

Manganese Matters n° 8(Issued April30, 2015)1

The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.

Infacon XIV 2015

June 1-3, 2015 - Kiev

INFACON international ferroalloys congresses held once every 2-3 years for the past 40 years (since 1974) are the most authoritative forums of the world ferroalloy industry. Participation in INFAСONs offers specialists the opportunity to learn about the advances in equipment and technologies for the ferroalloy conversion, as well as to identify industry development prospects as a whole, or those of specific companies and businesses. It is about exchange of the most complete and updated technical and market-related information, including news about the recent developments of main and auxiliary equipment for ferroalloy production, energy efficiency, slag processing, gas purification, etc.

INFACON 14 is being held in Kiev, the capital city of Ukraine, June 1-3, 2015, hosted by IMnI member the Ukrainian Ferroalloy Industry Association (UkrFA). IMnI has been strongly encouraging its members to attend in force. The organizers assure us the Kiev remains a safe destination and we have been tracking the situation there ourselves. However, in light of recent events, we advise members to seek advice from their national authorities before travelling.

8th Annual IMnI China Banquet in Singapore – A Success

IMnI hosted its 8th China Banquet for the 1st time in Singapore on Wednesday, April 1st, during the Metal Bulletin Ferroalloy Conference. This event, which has now become a tradition, offers IMnI‘s China members and potential members the opportunity to meet with non-Chinese producers in an informal setting. This year’s addition was an unmitigated success with some 70 guests in attendance.

IMnI Marketing & Communications Chairman Colin Ouwehand opened the Banquet with a recall of IMnI’s firm commitment to environmental issues, which are now becoming a primary industry concern in China. “IMnI can help you,” he promised. Executive Director Anne Tremblay then presented the program for the Annual Conference in Shanghai in June. “This conference, which will focus on China’s manganese industry, has been organized with you in mind,” she said. “Make it yours.”

The banquet was sponsored by Asia Minerals, BHP Billiton, Eramet Comilog, Glencore, Autlan, OM Holdings, Tshipi, United Manganese of Kalahari (UMK) and Vale. A special thanks to them.

IMnI Presents Mn Panel at Metal Bulletin Conference

IMnI was again well represented at the Metal Bulletin’s 16th Asian Ferro-alloys Conference, held earlier this month in Singapore for the first time. During the manganese session, Tiaan van Aswegen of Ore & Metal presented an update on his company’s Sakura Ferro-Alloys joint-venture with Sumutomo and China Steel in, Sarawak, Malaysia. With the 1st furnace expected to go into production in Q4 of this year, the plant is expected to reach full capacity of 110ktpa of HCFeMn and 70ktpa SiMn by Q2 2016.

IMnI Market Research Manager Aloys d’Harambure presented a Global Manganese Industry Overview and participated in the panel discussion, which followed. Also on the panel were Ore & Metal’s Jaco Venter and UMK’s Johan Kriek.

Executive Director Anne Tremblay chaired the session and animated the panel discussion.

Presentations of interest made at the conference can be found herePresentations

Manganese Matters n° 8(Issued April30, 2015)1

The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.


ARTICLEINDEX

ASIA(OTHER)

  • OM Holdings raises funds to advance Malaysia ferro-alloys project...... 20/04/15
  • Gulf aims for first manganese alloy production in early 2016...... 17/04/15

CHINA

  • China’s HBIS cuts ferro-alloys tender prices in May...... 29/04/15
  • Mn prices continue to fall in China, stainless steelmakers issue tender...... 28/04/15
  • Chinese spot Mn ore prices fall on thin business...... 28/04/15
  • China Shandong Intl starts ferro-alloys tender for May...... 27/04/15
  • APCX will trade manganese ore on Shanghai exchange...... 27/04/15
  • China ferro-alloys review – markets remain lacklustre amid export duty removal...... 24/04/15
  • China confirms removal of export duties on 1 May...... 24/04/15
  • Chinese HC FeMn prices in holding pattern...... 20/04/15
  • China investment continues to grow in sub-Saharan Africa mine sector...... 17/04/15
  • China ferro-alloys review – Mn alloys, FeCr and FeV prices stable...... 17/04/15
  • China’s Tianjin Iron and Steel cuts ferro-alloys tender prices in April...... 16/04/15
  • China top ten manganese ore importers in Feb 2015...... 16/04/15

INDIA

  • Ferro-tungsten prices react to Chinese export tax removal...... 30/04/15
  • India Market Report - ferro-alloys prices remain stable...... 28/04/15
  • MOIL registers 10pc growth in manganese ore production...... 23/04/15
  • SAIL, POSCO to set up steel plant in Jharkhand...... 21/04/15
  • Reopening of closed Mn ore mines in Odisha hits clearance hurdle...... 20/04/15
  • Odisha orders lease extension of 26 mines...... 18/04/15
  • Mn ore supply in Odisha to increase with reopening of mines...... 17/04/15

EUROPE

  • Europe MC FeMn slips, HC steady as slow trend persists...... 29/04/15
  • Silico-manganese prices rise in tightening European market...... 24/04/15
  • Europe SiMn market reflects depressed construction sector...... 23/04/15

CIS

  • Georgian American Alloys to invest $20mn on new plant in Georgia...... 27/04/15

OCEANIA

  • Eclipse Metals gets extension to explore Mn project...... 21/04/15
  • Eclipse Metals granted renewal of Mary Valley manganese...... 21/04/15

AFRICAMIDDLEEAST

  • S Africa mine employers closely watching gold sector wage talks...... 28/04/15
  • Eskom acting CEO says 3,000MW needed to solve load-shedding...... 24/04/15
  • Anglo American Cu, Ni output lower in Q1, but Mn, Nb and PGMs up...... 23/04/15
  • S Africa Eskom implements 6th consecutive day of power cuts...... 17/04/15

AMERICAS

  • Mexico manganese producer upbeat on 2015 prospects after Q1 loss24/04/15
  • Ferro-silicon production cutbacks continue to hit Brazil exports in March23/04/15
  • Vale shuts down ferro-alloys plants in Minas Gerais due to 'unviable' energy prices22/04/15
  • Vale Q1 ferro-alloys output slides after plant closures, nickel hits record...... 22/04/15
  • US SiMn seen vulnerable on weak demand despite stability...... 16/04/15
  • US FeMn spot price weakness seen persisting in near term...... 16/04/15

GENERALINFORMATION

  • WEEK IN REVIEW: Disappointing metals markets...... 24/04/15
  • WEEK IN BRIEF: China export taxes; aluminium premiums plunge...... 24/04/15
  • MANGANESE ORE INDEX: Prices fall as buyers bid aggressively...... 24/04/15
  • BHP Billiton ups Mn, Zn output, lower nickel for 9-months to March...... 22/04/15
  • WEEK AHEAD: Manganese ore...... 20/04/15
  • WEEK IN REVIEW: Hesitant start to 2Q in metals markets...... 17/04/15
  • MANGANESE ORE INDEX: Low grade prices stabilise in thin trading...... 17/04/15
  • Manganese ore miners cut Durban shipments amid price fall...... 16/04/15

STEELNEWS

  • Chinese steel exports to stay high this year - industry group...... 29/04/15
  • Nordic steel market stable despite no Q2 pick-up – MEPS...... 29/04/15
  • Weaker euro supports EU steel market, but imports loom...... 24/04/15
  • Usiminas: Brazil steel industry faces uphill struggle...... 24/04/15
  • US steel market worst since 1998 – ArcelorMittal...... 21/04/15
  • Global steel output declines in Q1...... 21/04/15
  • Modest increases in global steel demand forecast for 2015 & 2016...... 20/04/15
  • Long steel products demand low key, but steady – IREPAS...... 20/04/15

OHES SCIENCE

OTHER

************************

EMM

  • Selenium market eases in China, sentiment downbeat...... 28/04/15
  • Mn prices continue to fall in China, stainless steelmakers issue tender...... 28/04/15
  • Manganese flake prices continue to dip in China...... 27/04/15
  • Europe Mn flake price falls further on weak fundamentals...... 27/04/15
  • China manganese briquette exports up 12.48pc in Feb 2015...... 24/04/15
  • China manganese: Export offers slip further on weaker domestic prices...... 24/04/15
  • Selenium prices in China hit 9-year low...... 22/04/15
  • Manganese flake prices in China...... 22/04/15
  • Europe Mn flake market drops again in line with China...... 21/04/15
  • Europe Mn flake falls 4.5pc to 8-yr low, seen weaker...... 20/04/15

EMD

  • Why Some Lithium-Ion Batteries Explode...... 28/04/15
  • Should I Recycle My Disposable Batteries?...... 24/04/15

THE MANGANESE INDUSTRY

ASIA (OTHER) / backtoindex

OM Holdings raises funds to advance Malaysia ferro-alloys project

Metal-Pages 20/04/2015

Sarawak smelter

ASX-listed OM Holdings, the owner of the $400mn ferro-silicon and manganese alloy smelting project in Sarawak, Malaysia, has sold a 5pc interest in the project to joint venture partner Samalaju Industries for $18.45mn.

Proceeds from the sale will be used for development of Phase II of the smelter project. After transfer of the interest, OM will hold a 75pc stake in the project while Samalaju will hold 2pc.

Phase one of the smelter project to produce ferro-silicon and ferro-manganese intermediate products started production last September. That will ramp up to full production by the end of this year. The company has installed five electric arc furnaces at the plant.

When completed the ferro-silicon production facility’s annual capacity of 308,000t will make it one of the biggest ferro-silicon smelters worldwide.

The plant is the third energy-intensive facility that has been commissioned on site, with Pertama’s manganese and silicon alloy smelter to follow.

Press Metal Bhd’s aluminium smelter was the first energy-intensive industry in the area which started operations in 2013. Also in operation now is Tokuyama’s polycrystaline (polysilicon) silicon plant.

Gulf aims for first manganese alloy production in early 2016

Metal-Pages 17/04/2015

ASX-listed Gulf Minerals Corporation is on course to pour its first 78pc grade ferro-manganese alloy next year, according to the company's latest half-yearly report.

Construction will start this year on the first two smelters of the eight-furnace facility at the West Timor capital Kupang for some $52mn.

Gulf, an Australian registered company headquartered in Perth, will further investigate the potential manganese prospects it has already identified in the Tethyan Metallogenic Belt in Turkey, it said in a statement.

The eight furnaces at Kupang will be built in pairs in the next four years, focussing on high quality manganese ore and alloy production, it said. The project will be funded by a proposed dual listing on an overseas stock.

The first two 20,000t/yr furnaces should be online early next year, with a final total production capacity of 180,000t/yr by the end of construction. Gulf will export 50pc-plus manganese ore in construction to provide early cashflow.

CHINA / backtoindex

China’s HBIS cuts ferro-alloys tender prices in May

Metal-Pages 29/04/2015

Hebei Iron and Steel Group (HBIS), the largest steelmaker in China, has unveiled its ferro-alloys tender prices for delivery in May, and the steelmaker lowered its prices in line with tepid consumer demand.

The tender price for silico-manganese 65/17 grade fell by RMB150/t compared with April, and the tender volume is 29,850t.

In addition, the tender price for high carbon ferro-manganese 65C7.0 grade has been cut by RMB150/t compared with April, and the steelmaker is intending to buy 1,980t of the material.

The tender price for medium carbon ferro-manganese 78C2.0 grade has been lowered by RMB200/t, and the tender volume is 1,540t.

The tender price for medium carbon ferro-manganese 78C1.5 grade dropped by RMB200/t, and the tender volume is 800t.

Steelmakers have pushed down tender prices for manganese alloys in the past couple of months in view of lower manganese ore prices. But it usually takes about two months for alloys producers to receive ore imports, and producers are still under pressure from high ore costs and lower alloy prices.

Even though a few major ferro-silicon producers have cut production in the past couple of weeks in response to lacklustre demand and lower prices, prices have declined further and stocks remain ample.

Most other steelmakers are likely to make a similar move, and their tender prices are expected to drop further in May.

Mn prices continue to fall in China, stainless steelmakers issue tender

Metal-Pages 28/04/2015

The manganese price downtrend has continued as lower priced material is being offered in the market as a result of a struggling local stainless steel sector.

With the end of April near, some key stainless steelmakers have begun their monthly purchases.

WISCO has issued its tender price for manganese briquettes 97pc, RMB620/t lower than last purchase at the end of March. The purchase volume is about 1,800t.

Other key stainless steelmakers in China are likely to issue their monthly purchases in the following days, which will provide a clearer price trend.

Although a number of small producers have cut or halted production due to operating losses, key producers have no intention of making production cuts.

Prices have been falling for two months.

Chinese spot Mn ore prices fall on thin business

Metal-Pages 28/04/2015

China’s spot prices for imported manganese ore have fallen in the past week in response to price cuts by BHP Billiton and a sluggish manganese alloys market.

The market has dropped steadily since early this year. Spot business has remained thin in line with slow demand, although prices have fallen again.

Most producers are cautious about restarting furnaces in southern China in the short term in view of a tepid alloys market, although electricity prices will be lower in the rainy season. Consequently, demand for ore is not expected to increase sharply in the near future.

In addition, producers have little interest in replenishing stocks in northern China as overseas miners have lowered prices in the past couple of months, and ore prices are expected to be in a holding pattern or edge down in response to moderate demand.

China Shandong Intl starts ferro-alloys tender for May

Metal-Pages 27/04/2015

China's Shandong International Trading Group, a subsidiary of Shandong Iron and Steel Group, has started its ferro-alloy procurements for delivery in May.

The company is planning to buy 12,180t of ferro-alloys, including ferro-silicon, silico-manganese, high carbon ferro-manganese, medium carbon ferro-manganese and 12 other products. The public tender will be closed on 27 April.

A number of steelmakers will start their monthly procurements in the coming week following the tender by Shandong Iron and Steel Group. Manganese alloys tender prices are expected to fall further in response to the sluggish steel market and lower ore prices.

APCX will trade manganese ore on Shanghai exchange

Metal Bulletin 27/04/2015

Shanghai Asia Pacific International Commodities Exchange (APCX) is planning to launch manganese ore trading to discover a “Shanghai price” for material in China.

The first deal is expected to take place in late July, APCX president Chaobin Dong told Metal Bulletin.

"We hope APCX can make use of the Shanghai Free Trade Area. We hope to explore new financial tools to promote cargo liquidity and trade efficiency, make trade more convenient and help control the financial crisis for participants," he said.

APCX expects the exchange to solve several "problems" in the manganese market, it said in a presentation seen by Metal Bulletin.

The problems it listed include "chaotic market information", lack of transparency around pricing, lack of analysis of market information, lagging financial services and "payment problems".

APCX also plans to start nickel and coal trading, according to market sources, some of whom suggested it might start trading nickel before manganese ore because the alloying metal offers better financing opportunities and can be traded with greater liquidity.

It plans to operate a "manganese supermarket" through a secure service platform, facilitating yuan-based, physically delivered spot manganese ore trades.

The exchange will provide an online bidding service and set up a bonded distribution service, for trading of 37% and 46% manganese ore.

Users will pay a deposit and performance guarantee, which can be paid in a currency other than yuan. Trades will be cleared through a Shanghai clearing house.

Sellers will post information about the quality of their material and their offer price.

The exchange will then freeze their performance deposit. The buyer will add manganese ore to their online shopping card and the exchange will freeze its performance deposit. The buyer will apply for a logistics service, then delivery and settlement can take place.

The company was founded by China Railway Engineering Corp and Genertec in October 2013 and received regulatory approval in January 2015 to establish an exchange.