[Ferro-Alloys.com] United Manganese of Kalahari (UMK) announced today its choice to exclusively use rail transport for manganese exports. Chief Executive Malcolm Curror mentioned that the company is responding to softer market conditions and the current dynamics of supply and demand.

Curror has reported that the manganese ore inventories at Chinese ports are at an all-time low. Interestingly, prices for semi-carbonate ore are still declining despite these low stocks. As a result, the company has determined that China’s upstream ore market is adapting to a more streamlined supply chain, showing increased flexibility regarding lower stock levels at the ports. It is clear that ongoing weak steelmaking activity is limiting the potential for manganese ore prices to rise. The uncertainty created by ore export quotas and tariffs aimed at encouraging beneficiation, as mentioned by Honourable Minister Mantashe, is expected to affect South Africa’s manganese ore supply.

At present, UMK accounts for approximately 12.5% of South Africa’s manganese exports and is the country’s second largest manganese mine.

Early last year, UMK also imposed a temporary export limit to responsibly manage its resources during market fluctuations. “During the prior effort and this current one, there will be no disruption in the value chain,” Curror stated. He stressed that this strategic shift would not affect business continuity either.

“UMK consistently assesses global market trends, and as in the past, the company will maintain production and export flexibility to enhance overall sustainability,” Curror stated.

UMK extracts manganese from an open pit mine located in the Kalahari region, close to Hotazel in the Northern Cape manganese fields

About United Manganese of Kalahari

United Manganese of Kalahari is a South African mining company, operating on the Kalahari manganese field in the John Taole Gaetsewe District Municipality in the Northern Cape Province of South Africa.

The Kalahari manganese field is regarded as the largest manganese ore deposit globally. The field extends continuously in a north-western direction, for a distance of 34km from Mamatwan Mine in the south to the Wessels and Black Rock Mines in the North. UMK is a company operating in a manganese-based economy with exposure to the export market. It is strategically located with good access to rail infrastructure, rapid load-out and export facilities.

Released: 1st April 202504

UMK responds to weak market conditions by switching to rail, limiting exports

L ocal miner United Manganese of Kalahari (UMK) has decided to switch from using road freight transportation to rail for the transport of manganese ore, as well as limit its exports to align with current supply and demand dynamics.

CE Malcolm Curror explains that stockpiles in major markets such as China are currently healthy, leading to a decline in demand from South Africa. While the price of manganese enjoyed a buoyant period in the middle of the year, it was short-lived and current market conditions do not support the need for multiple transportation methods.

In turn, the limitation on exports is aimed at ensuring responsible management of resources while navigating fluctuating market trends.

“UMK remains committed to optimising operational efficiency and minimising disruption of business continuity through the exclusive use of rail for manganese exports.

“The company will continue to monitor global market conditions and adjust its strategy as needed to maintain sustainable growth,” Curror says.

UMK produces manganese from an openpit mine in the Kalahari manganese field located in the Northern Cape, and is the fourth-largest manganese producer in South Africa

Rleased 18th October 2024

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• [Editor:tianyawei]