Do you really think that GMC will be competitive in the international market? Two large large Mn smelters move in China and increase production. Their electricity will be far cheaper and they own their own manganese mines, they will undercut GMC significantly.
https://metals.argusmedia.com/newsandanalysis/article/1510587
China’s Mn production hub shifts to north
04 Aug 17,
"Xinjiang-based producer Kebang Manganese has built a 75,000 t/yr plant in the province's Akto county. The company has four manganese ore mines with an average content of 38pc. Its manganese ore costs are around Yn200/t including mining and transportation costs. Kebang has received a Yn0.30/kWh electricity tariff, 50pc lower than its southern competitors.'
This means they have electricity at US$0.04c/KWh and their Mn ore costs US$30/tonne.
"Ningxia-based Ningxia Tianyuan has become China's largest manganese producer with its daily production accounting for 50-60pc of China's total output, estimated at 3,500-4,000t. With advantageous costs, producers in northern China are expected to take more market share in future."
The company plans to add 400,000 t/yr of capacity to its facility in Zhongning county of Ningxia province. The launch date has yet to be determined and the company will continue to assess market conditions in the next few years. Total capacity is expected to rise to 1.2mn t/yr from 800,000 t/yr.
Tianyuan will also build a captive power plant in 2019 to lower its electricity cost to Yn0.195/kWh compared with the Yn0.50-0.60/kWh levels seen in southern China. The company has also secured manganese ore feedstock supply from a large mine in Ghana acquired from Australia's Consolidate Minerals (Consmin).
This company will send GMC broke as soon as GMC starts operation. Tianyuan will have power at US$0.03c/KWh and their manganese ore from their own mines in Ghana. They can also re-open Woody Woody in WA at a moments notice.
Might be worth noting that this company also owns 10% of OMH.
Frankly after reading this I've decided that I won't be buying GMC, as its now impossible for GMC to compete in the Mn alloy market.
