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Once
again I find myself wondering in print why there is little to no public
outcry from mining writers or industry pundits (or politicians) regarding the
fact that America (& Canada) have “NO” domestic mine
operations in Manganese. As I have previously outlined since 2007 in numerous
Manganese related editorials, we no longer have any Manganese mines of our
own. We have a Steel Industry that is as high tech and as capable as any to
compete on the world stage but still (since 1985) America must remain at the
mercy of imported Manganese and mostly from not so friendly nations or supply
disruptions due to electrical issues of developing countries such as China
& S Africa and
not accounting for the fact that China is already bargaining for Australian
Manganese.
We
constantly read of late how China controls 93% of Rare Earth production
worldwide and all of the fears that little detail encompasses. Well, how
about the fact that China controls approximately 97% of the world’s
supply of Electrolytic Manganese Metal (EMM). People need to wake up to the
fact that Steel cannot be made for today’s world without adding 20 to
25 pounds of Manganese per Ton of Steel, mainly for de-sulphurization and
alleviating brittleness of many steel products, not to mention that Manganese
is now replacing Nickel in many Stainless Steel products due to cost cutting
factors.
Manganese
is used in many forms and applications today and one of the latest is in
Cathodes for Lithium-Ion batteries for Hybrid vehicles. This is one reason
where I ask “Why”
when many are so concerned with Lithium supplies (there are literally
mountains of this mineral in Bolivia & Argentina as well as minable
deposits in the US and Canada) that little to nothing is being said about
Manganese. The battery use form of Manganese is Electrolytic Manganese
Dioxide (EMD) and both EMD & EMM must be supplied or produced from raw
Manganese ore produced by outside Nations. Over the past 6 years the
annual demand growth rate for Electrolytic Manganese has been an astounding
26% per year, primarily due to the steel market and here we are almost
totally dependant on China for all the EMM/EMD used by American industry.
Some
reading this commentary will recall a previous editorial I penned that
outlined the fact that Manganese is listed as a “Strategic Metal” by
the US Gov’t. (excerpt from that commentary)
“On
Jan. 7, 1987, Manganese was certified by the U.S. Dept. of State as a
Strategic Mineral essential for the economy and defense of the United States
that is unavailable in adequate quantities from reliable and domestic suppliers.
The problem created by this unavailability is aggravated since there is no
satisfactory substitute for Manganese among its major applications and it has
itself now become a substitute in certain alloy applications due to new and
innovative metallurgical discoveries.”
* The US Geological Survey also
states: there are no substitutes for Manganese in its
major applications – the manufacture of steel, steel alloys, non-steel
alloys, batteries (alkaline), fertilizers and animal feed.
Just
to add insult to injury, the US Gov’t adds a 14% Import Tax on EMM to
compliment the 20% Export Tax China imposes. Now as any person in their
right mind can see, we are immediately placed at a major disadvantage to
China when it comes to the wide uses of Manganese in our domestic industries.
Here
are a few more pertinent statistics regarding Manganese. (EMM/EMD)
- Manganese
is the world’s 4th largest traded metal behind Iron, Aluminum, and
Copper.
- Manganese
consumption worldwide is roughly 30 Billion Lbs per year.
- Electrolytic
Manganese production has gone from 660 Million Lbs p/yr in 2002 to 2.6
Billion Lbs p/y in 2008.
- S
Africa & China both facing metal production decreases due to electrical
power shortages.
- Worldwide
Manganese demand has been growing by 8% per year. (approximately 1.5 B lbs)
- Worldwide
Demand for Electrolytic Manganese by Industry = 47% for Steel, 32% for
Aluminum, 14% for Electronics, 7% for Chemicals etc.
- Military
applications for Manganese are huge but on the extreme side of the spectrum
and seldom mentioned.
Newly discovered applications for
Manganese are constant. A recent one being a process developed by Kyoto
University in Japan to reproduce the photosynthesis process using Manganese
Dioxide to absorb large quantities of Carbon Dioxide (CO2) emissions.
If these Kyoto scientists are successful one can only begin to imagine what
excitement there will be from the Global Warming crew and media. Manganese
could very well play a historic part in our earth’s green future.
Rare Earths aren’t the only metals to get excited about to my
mind. Yes, they are an extremely important part of the new world in
mineral uses/discoveries, but soon we will see Manganese come much further to
the forefront of N American miners and media as it should.
There’s
no shortage of Manganese in the world, in fact there’s an abundance of
it. The problem lies in having to depend on other nations to supply it.
China wants us to buy finished products not raw materials. Raw materials such
as Rare Earth’s and Raw Manganese Ore are already banned from sales
outside of China and products like EMM & EMD are highly taxed and WILL
become unavailable if and when they
decide. These are turbulent times and Americans (and Canadians) need their
own “In Country” supplies of this wonder metal. China is a
voracious dragon in the mix and there is no part of the world unnoticed and
few counties untouched in their search to secure mineral supply thru partial
or direct ownership of mines and resources. As I often tell those who
live in complacency with regards to our mineral wealth, “Natural
resource minerals are Finite, not Infinite.”
Anyone
who doubts China’s intent w/ respect to Manganese in particular and not
just the current Rare Earth supply worries, definitely needs to read the
following Asia Times article from last June…
Manganese
Skirmish Takes on Global Hue
By John Helmer: June 2 /09 Asia Times:
MOSCOW - The world of manganese mining is so small,
concentrated and dependent on China that if there are disputes, the
reputation of the trade can be swiftly and seriously threatened, especially
among the Chinese.
China rules the world of steel - biggest producer, biggest
consumer and until this year, biggest exporter. Manganese is vital to steel
production because it is an alloy that hardens the metal for most industrial
applications. So China also rules the world of manganese, whose source is
concentrated in Australia and two southern African countries; http://www.atimes.com/atimes/China_Business/KF02Cb01.html
Further
Comprehensive Reports on the Future of Steel & Manganese:
Steel
and Manganese Prospects To 2012 http://www.laplaceconseil.fr/LaplaceConseil/htdocs/admin/upload/File/Steel%20&%20Mn%20prospects%20to%202012.pdf
View
on The Future of The Global Steel Industry; http://www.laplaceconseil.com/LaplaceConseil/htdocs/admin/upload//File/New%20steel%20Paradigm.pdf
Consider
the scenario if/when China finally gives in to western pressure and revalues
the Yuan at whatever higher rate it deserves. Now you have an industrial
power base that not only has major control over a huge amount of mineral
resources worldwide, but our costs to buy their added value products goes up
and at the same time their buying power of resources increases.
As
I’ve stated, we are in very turbulent times in many different ways and
now I can only wonder “When”
America will wake up and see the future for Manganese mines needed at home
and not just sit complacently & patiently watching for a bulk carrier
ship on the horizon that, one day, may or may not, come at all.
We now
have the U.S. RESTART Act of 2009 (Bill) recently passed which allocates
grants and loan guarantees for Rare Earth mining/production as follows.
($1.25 Trillion Dollars) http://www.usmagnetmaterials.com/wp-content/uploads/2008/05/Restart-Act-Final-10-09.pdf
To
authorize the re-establishment of a competitive domestic rare earths minerals
production industry; a domestic rare earth refining, purification, and metals
production industry; a domestic rare earth metals alloying industry; and a
domestic rare earth based magnet production industry and supply chain in the
United States.
AUTHORIZATION
OF APPROPRIATIONS. – There are authorized to be appropriated to the
Secretary to carry out this section a total of $1,250,000,000 for the period
of fiscal years 2010 to 2014 for the purpose of establishing a domestic rare
earth supply chain to support the national security and renewable energy
needs of the United States.
Maybe
it’s time the US & Canadian Governments took a long hard look at
their domestic future needs for Manganese and light a fire under a
Manganese project or two in the USA and Canada as there is great potential
for that to become a reality even without a RESTART program.
They’re out there I just can’t speak of them here. I hope
I’ve sufficiently outlined and answered the “Why”
part of this commentary title, now all that remains is “When”. That answer
may be needed sooner rather than later.
“You
can’t make steel without Manganese and if you can’t make steel,
the world stops”
Quote by Brian Gilbertson, CEO of Pallinghurst Resources
Ltd. and former CEO of BHP Billiton as quoted by Bloomberg, Sept. 17, 2009.
As
Always: Thanks for reading;
Ken
Reser
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