Gulf Manganese is focused on two revenue streams:
- the export of Direct Shipping Ore (DSO); and
- refined ferromanganese alloys of medium and low carbon manganese.
Gulf’s DSO and refined alloy products will be in very high demand due to their high manganese content and low impurities.
Gulf is ideally located to make the most of Asian demand, with its close proximity to the key markets of Asia, especially China, Korea and Japan.
Manganese Market Overview
Manganese ore prices have risen steadily over the last 12 months, with prices increasing over 100% from $4.12/dmtu CIF China in March 2017 to $8.81 CIF China for 44% grade manganese lump (as of March 2018).
Manganese is the 4th most used metal after iron, aluminium and copper, and is essential for steel production: – 90% of the world’s manganese is used by the steel industry.
Refined ferromanganese alloys are usually used in the manufacture of high grade steel (for automobile and ship building). Low carbon ferromanganese is widely used in the manufacturing of tool, alloy and structural steels.
Other uses for manganese include dry cell batteries, agriculture (fertiliser), health and special alloys.
World Manganese Deposits
Worldwide Refined FeMn Production: approx. 1.92 mln mt
Manganese in West Timo
The high-grade manganese deposits around West Timor forms a key component of Gulf’s overall strategy, as it looks to secure ore supply through strategic acquisitions of local manganese mines.
This strategy leverages Gulf’s access to the highest grade manganese (+44%Mn) in the world, and its supply of high grade ore to the Kupang Smelting Hub, where ore is processed into ferro manganese alloy (to allow export as per Indonesian regulations).
Gulf is ideally located to make the most of the manganese-hungry Asian market, with its close proximity to the key markets of Asia, especially China, Korea and Japan via the nearby Tenau Port.
