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Mining of Manganese in South Africa
South Africa was the world’s largest producer and exporter of manganese ore in 2019, accounting for 30% of global production and almost 50% of global exports. However, the impact of the coronavirus pandemic on manganese supply and demand, rapidly rising input costs, and inadequate rail infrastructure for exports are some of the challenges faced by the manganese mining sector.
While manganese ore production has steadily increased, producers face some challenges. These include increasing supplier and logistics costs and inadequate rail capacity. The coronavirus pandemic resulted in manganese mines being put on care and maintenance due to the national lockdown, and some companies declaring force majeure on customer, supplier and freight contracts. Mining operations have been allowed to operate at full capacity from 1 June 2020.
Transnet has introduced the longest production trains in the world to transport manganese ore from Sishen to the port of Saldanha Bay. Adequate land-based transport infrastructure is critical to the success and growth of the manganese mining sector, and a key issue affecting the industry is the inadequate infrastructure provided by Transnet to transport ore to the different export harbours., depriving mining companies of the opportunity to export greater volumes of manganese.
This report focuses on the Mining of Manganese in South Africa and includes comprehensive information on the state and size of the sector, developments and corporate actions, trade statistics and influencing factors such as regulation and environmental issues. There are profiles of 11 companies including large producers such as Assore, Hotazel and Tshipi e Ntle Manganese, as well as Aquila Steel, which received a mining right for its Gravenhage deposit in the Northern Cape and Kalagadi, which is opposing a business rescue application.