Is manganese becoming critically important for industry growth?
Team Veye | 15-Aug-2021
Everybody knows that steel is made of iron but very few know that manganese is also an important constituent of steel. Although a small percentage, it is just as essential as iron. Simply put you can’t make steel without manganese.
Manganese removes oxygen and sulfur when iron ore (an iron and oxygen compound) is converted into iron. As an essential alloy, it helps convert iron into steel. It decreases the brittleness of steel and improves its strength. Manganese is used also as an alloy with aluminum and copper for the same reason.
Major infrastructure, such as hospitals, office towers and bridges, use steel that contains manganese. It’s some other important uses include battery cathodes, soft ferrites used in electronics, micronutrients in fertilizers and water treatment chemicals.
Manganese is the 12th most abundant element in the Earth’s crust, with the element seeing huge global demand due to its many and varied applications in the production of steel and high-capacity batteries.
Australia is the world’s second-largest manganese producer, with an annual production of about 3 million tonnes. The country, which is believed to have the fourth-largest manganese reserves, produces 15% of the globe’s manganese ore and has 11% of the world’s economic demonstrated resources of the ore.
The Manganese and Other Mineral Mining industry is forecast to continue growing at a strong pace over the next five years, due to stable output growth and continuing demand from Chinese steel producers, and as the industry recovers from the COVID-19 pandemic.
World manganese prices are projected to increase steadily over the next five years, with other metal prices likely to increase at a slower rate.
The Northern Territory is a world leader in manganese production, with the world’s largest and lowest cost manganese mine on Groote Eylandt, and another operating mine at Bootu Creek make. Manganese is currently the largest contributor to the Territory’s mineral production value.
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.