More African manganese offtakes diversify supply

News Analysis




More African manganese offtakes diversify supply

Marula Mining has signed an offtake agreement with UK commodity trader Fujax for manganese ore production from the Larisoro manganese mine in Samburu, Kenya. 

An initial delivery of 2,000t of manganese ore is required by July 1, 2024. These initial deliveries will be sourced from the existing material stockpiled in Nairobi. Subsequently, there will be a minimum monthly sale of 5,000t, with a nominal sale of 20,000t to be completed by June 2025 at a minimum grade of 30% Mn.

The Larisoro manganese mine is one of the latest manganese mines in Africa to gain international investment following the addition of manganese to the list of critical materials set by many Western governments. Larisoro has been operating since 2012 and has historically produced a 37% manganese grade product, which is suitable for the production of manganese alloys.

In 2023, African manganese ore accounted for over 65% of global production, with South Africa and Gabon responsible for 91% of that production. Recently, companies such as Elcora have restarted smaller operations in Morocco, while several projects in Togo and Cote d’Ivoire have come online with ores destined for both the alloys and battery markets. Although Gabon and South Africa host some of the largest reserves, these smaller mines are gaining traction as supply diversification becomes increasingly critical amidst growing global geopolitical tensions.