manganese: a metal to watch closely

Manganese: A metal to watch closely PURE SPECULATION Robin Bromby From: The Australian February 21, 2011 2:42PM Increase Text SizeDecrease Text SizePrintEmail Share
Add to DiggAdd to del.icio.usAdd to FacebookAdd to KwoffAdd to MyspaceAdd to NewsvineWhat are these?MANGANESE is vital to steel making - and there is no substitute.
But the market looks to be a state of uncertainty at present with reports that a number of producers have reduced their prices into China for March delivery, such is the competition in that market.

At the same time, Ivory Coast production fell by more than half in December compared to the preceding month due to the political troubles there.

On the supply side, too, there are commentaries arguing that South Africa could become a much bigger player once it gets its infrastructure ducks in a row.

So here's a quick update on the manganese scene.

Today we've heard that Groote Resources (GOT) is beginning talks with traditional owners involved with the company's Groote Eylandt manganese project. GOT is also relocating its head office to Darwin.


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Other developments in recent days include Alloy Resources (AYR) saying it had identified additional manganese drill targets at is project near Cootamundra, NSW. Montezuma Mining (MZM) says test work at its Coodamudgi deposit has produced economic manganese grades, while Azure Mining (AZS) has started drilling at the San Francisco manganese project in Mexico.

Hartley's last week put out a report on Shaw River Resources (SRR) after a visit to the company's new Otjozondu manganese deposit in Namibia. SRR plans to be in production within 18 months. Hartley's notes the long life and high grade potential of the project with numerous historic workings and manganese outcrops over a large area.

The project formerly produced manganese at a 38 per cent grade but SRR, using more modern and efficient technology, should be able to ramp up production to deliver a better quality product, says analyst Andrew Muir.

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WHILE Australia continues to remain obdurate about nuclear energy, the rest of the world is getting on with it.

Argentina is, according to Cauldron Energy (CXU), "a mature nuclear power generation country and is seeking to secure a local source for its domestic uranium requirements" - against the present situation where uranium supplies are fully imported.

Enter CXU with plans announced today to provide funds to an Argentine company aiming to revive the Los Colorados mine which produced uranium between 1992 and 1996. Cauldron can decide whether to take the loan repayments in cash or shares - which will no doubt depend on how the exploration turns out.


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A BIG sigh of relief today in terms of Australia's resource security - and in the cause of fighting any metal monopoly.

Anchor Resources (AHR) has told its shareholders to reject the takeover offer from China Shandong Jinshunda Group on the grounds that the bid under-values the strategic importance and attractiveness of Anchor?s assets. That's a reference to the fact that China now provides 90 per cent of the world?s antimony. Furthermore, the terms of the offer are messy including the need for Jinshunda to get approvals from three separate Chinese agencies.

Antimony recently hit a record high of $US14,200 a tonne, a 45 per cent increase since August. Taking the offer for AHR would deprive present shareholders of the antimony upside.

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