Georgian Manganese made the decision to place its manganese mines and Zestafoni ferroalloy plant on care and maintenance from 1 November 2024 until 1 March 2025. 

The Georgian American Alloys (GAA) subsidiary cited ore shortages and declining SiMn prices, alongside subdued global demand, as reasons for its decision. Manganese mining in Chiatura has faced multiple suspensions since 2019 due to month-long strikes by residents, who protested environmental damage in residential areas and occasionally blocked mine entrances. In 2023, and again this year, Chiatura miners also launched strikes, calling for higher wages and better working conditions, leading to a full shutdown of operations across all mining sites. 

The manganese ore from these mines is processed into SiMn at the Zestafoni ferroalloy plant, with the majority exported to the USA, Türkiye, and Canada. In 2024, Georgia’s SiMn exports increased by 70% y-o-y, with Türkiye raising its imports by 126% y-o-y. The USA has remained the primary importer of Georgian SiMn, while South Africa and Australia each account for around 20% of SiMn imports into the USA. 

However, Georgian Manganese is not the only Western alloy producer supplying the USA facing difficulties. Australian company TEMCO has faced challenges this year after its main ore source, S32’s GEMCO mine, was placed on care and maintenance following a hurricane, while its parent company, Liberty Steel, is managing its own financial crisis. Any additional demand for SiMn would likely require increased imports from South Africa and Mexico, which only account for 8% of all US SiMn imports. Even so, FeSi and HC FeMn combinations remain more cost-effective for US steel producers compared to SiMn. Production increases by Eramet’s Marietta and GAA’s Felman alloy plants may help offset any potential deficit should one arise.