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					                                                                           MANGANESE MATTERS
                                                                                           December 19, 2011 - Issue n° 20



Article Index                             3                                        IMnI 3rd Health & Safety Workshop
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                                                                                          IMnI Office Closes for Holidays

                                                             The IMnI Office will be closed from Monday, December 26 through Friday,
                                                             December 30, 2011. It will reopen on Monday, January 2, 2012.

International Manganese Institute                            For   urgent matters,   you    can    reach                                              Anne            Tremblay             at:
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            Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                               1
  The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
                                                                         The Metal-Pages Light Metals and Ferro-Alloys Conference
                                                                         Feb. 12-15, 2012 - Dubai'

                                                                         13th Asian Ferro-alloys Conference
                                                                         March 27-29, 2012 - JW Marriott, Hong Kong

                                                                         The 9th China Ferro-Alloys International Conference , 2012
                                                                         23-25 May 2012, Great Concordia Hotel - Beijing




          Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                               2
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
                                                                            ARTICLE INDEX

          ASIA (OTHER)

                      South Korea Jan-Sep 2011 ferroalloy output up 39pct ...................................................... 14/12/11


          CHINA

                      Taigang cuts silicomanganese price for January on downward steel price trend .............. 14/12/11
                      Taiyuan Iron and Steel (TISCO) cuts ferroalloy tender prices ........................................... 13/12/11
                      China’s silicomanganese producers push up prices .......................................................... 09/12/11
                      Chinese ferroalloys weekly roundup - Ferro-silicon, silico-manganese prices rebound .... 09/12/11

          INDIA

                      MOIL readies Rs 500-cr kitty for overseas acquisition in Indonesia, Turkey ..................... 19/12/11
                      Moil Presents Rs 54.10 Crore Dividend Cheque to the Steel Minister .............................. 19/12/11
                      Indian Market Report - Indian steel consumption low ........................................................ 13/12/11
                      Maharashtra Elektrosmelt renamed as handrapur Ferro Alloy Plant ................................. 13/12/11
                      Indian silicomanganese market slow.................................................................................. 12/12/11
                      MOIL e auction for ore, slag and ferro-manganese ........................................................... 08/12/11

          OCEANIA

                      Montezuma Mining Company identifies DSO manganese potential at Butcherbird .......... 15/12/11
                      Bligh Resources identifies manganese targets at Manilla.................................................. 14/12/11
                      Montezuma Mining increases manganese resource .......................................................... 12/12/11

          EUROPE

                      Miner offers to buy Areva’s Eramet stake – report ............................................................. 14/12/11


          CIS


          AFRICA & MIDDLE EAST

                      Mining company loses case on technical point .................................................................. 14/12/11
                      South African mining output falls in Q3; sales increase ..................................................... 09/12/11

          AMERICAS

                      Ecometals Ltd provides update of developments under the sale agreement .................... 16/12/11
                      DLA offering high-carbon ferromanganese ........................................................................ 14/12/11
                      US ferromanganese market off 10pct as supply jumps ..................................................... 08/12/11
                      US manganese alloys prices fall sharply on liquidations ................................................... 07/12/11
                      US silicomanganese prices fall 10pct, imports up .............................................................. 06/12/11

          GENERAL INFORMATION

                      Ryan’s Notes Weekly ......................................................................................................... 19/12/11
                      Manganese ore production by six major firms in 9M 2011 up by 2pct YoY ....................... 17/12/11
                      Italy’s Tenova buys Bateman Engineering ......................................................................... 13/12/11

          Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                               3
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
                      Ryan’s Notes Weekly ......................................................................................................... 12/12/11
                      Global manganese ore prices start falling .......................................................................... 10/12/11

          STEEL NEWS

                      CHINA STEEL WRAP: Rebar futures get last-minute lift from RRR cut rumour ............... 16/12/11
                      CHINA STEEL WRAP: Prices fall amid economy gloom ................................................... 15/12/11
                      China holds off on US scrap imports as prices rise ........................................................... 15/12/11
                      Pullback in capacity rates drags US steel production lower............................................... 14/12/11


          OHES & SCIENCE




                                                                                    ************************


          EMM

                      China manganese market weakens in line with demand ................................................... 14/12/11
                      China manganese flake prices down as demand falters .................................................... 13/12/11
                      Power tariff hike puts pressure on manganese producers in China .................................. 09/12/11
                      CPM sees electrolytic manganese flake prices rising ........................................................ 09/12/11
                      China Jan-Oct 2011 manganese briquettes exports down 8pct ........................................ 09/12/11


          EMD

                      Toda Kogyo, Mitsui to launch new Li-ion battery brand ..................................................... 16/12/11




          Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                               4
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
                                   THE MANGANESE INDUSTRY


                                              ASIA (OTHER)                                  back to index

   South Korea Jan-Sep 2011 ferroalloy output up 39pct
   Metal-Pages, 14/12/11

   South Korean production of ferro-alloy was up 39% to 419,000 tonnes in the first nine months of 2011,
   year-on-year, according to the South Korea Iron and Steel Association.

   In the first nine months, South Korean production of ferro-manganese was 266,000 tonnes, up more
   than 24% from last year, with 157,000 tonnes of high carbon ferro-manganese – up more than 31%.

   It also made 109,000 tonnes of low carbon ferro-manganese - up 16%, while silico-manganese
   production was 149,000 tonnes - up almost 79%, and other ferro-alloy production was 3,124 tonnes - up
   more than 3%.


                                                     CHINA                                  back to index

   Taigang cuts silicomanganese price for January on downward steel price trend
   Metal Bulletin, 14/12/11

   Taigang has cut its purchase price for silico-manganese in January, 2012, shaking market confidence.

   Its bid price for silico-manganese for January delivery is now 7,950 yuan ($1,243) per tonne, with
   payment half in cash and half in acceptance draft, down 50 yuan from its December price, sources
   close to the deal told MB.

   "The mill also cut its purchase volume [for January] to 2,000 tonnes, down 1,000 tonnes from
   December," a source at a Shanxi silico-manganese producer said.

   "Enquiries increased this week, but most are just asking for the prices. Buyers are very cautious at the
   end of the year," the source added.

   Following Taigang's tender, other steel mills are expected to drop their prices for January by 50-100
   yuan per tonne, an analyst from Shanghai said.

   "Market demand for silico-manganese remains weak with steel prices in continuous decline, so silico-
   manganese prices are hard to rally in the near term," he added.

   Local producers now holding their offers in the range of 7,700-8,100 yuan per tonne, unchanged from
   last week.

   Taiyuan Iron and Steel (TISCO) cuts ferroalloy tender prices
   Metal-Pages, 13/12/11

   Taiyuan Iron and Steel (Group) Company, one of the biggest steel mills in China, has published its
   tender prices for ferro-alloys for January production next year, with cuts in all manganese alloys.

   The tender price of silico-manganese 65/17 grade is RMB7,950/tonne basis delivery, a drop of
   RMB50/tonne from December, on traded volumes of 2,000 tonnes.

   The tender price of HC ferro-manganese 75% grade is RMB7,960/tonne basis delivery next month,
   down RMB40/tonne, on a volume of 2,000 tonnes.




Manganese Matters n° 20 (Issued December 19, 2011)                                                     5
       The tender price of medium carbon ferro-manganese 82C1.5 (Si<1.0%) grade is RMB10,880/tonne, a
       drop of RMB620/tonne on a trading volume of 1,850 tonnes.

       China’s silicomanganese producers push up prices
       Metal Bulletin, 09/12/11

       China’s silico-manganese prices rose this week after producers raised offers in response to energy tariff
       hikes in the country.

       Prices of MB Chinese free market silico-manganese min 65% Mn max 17% Si, were at 7,650-7,900
       yuan ($1,025-1,244) per tonne on Friday, up 150-200 yuan from a week ago.

       “Many producers raised their offers from late last week after energy prices increased, pushing up the
       market,” an analyst in Beijing said, adding that some producers were unwilling to do business as they
       expected prices to rise further in the days ahead.

       Low operating rates of local producers as well as raised electricity fees were the main reason for this
       rally, a Ningbo trader said.

       “It’s still difficult to say how long the rally will last, however, because demand from steel mills remains
       weak,” the trader added.

       Meanwhile, silico-manganese failed to find much support from the manganese ore sector, which was
       also in a downward price trend.

       BHP Billiton has cuts its manganese ore prices by up to 20% for January next year to release pressure
       on sales and inventory.

       Chinese ferroalloys weekly roundup - Ferro-silicon, silico-manganese prices rebound
       Metal-Pages, 09/12/11

       Chinese ferro-silicon and silico-manganese prices have rebounded slightly in the past week in line with
       higher electricity costs, while molybdenum prices are down as steel mills cut bids and prices this week.

       FERRO-SILICON

       Chinese ferro-silicon prices have rebounded slightly in the past week in line with the cost of electricity.
       The ex-works price of ferro-silicon 75% grade is at about RMB6,300-6,400/tonne, from RMB6,250-
       6,350/tonne. The market in 72% grade is at RMB6,050-6,200/tonne, from RMB6,000-6,100/tonne in the
       past week. The biggest producer in Inner Mongolia last Friday increased its offer to RMB6,650/tonne
       basis delivered to Tianjin, from RMB6,500/tonne. However, most exporters have no interest in cutting
       their offer prices despite currently weak demand, as black market prices have fallen below $1,300/tonne
       basis FOB.

       SILICO-MANGANESE

       The Chinese silico-manganese market saw a small uptick in prices in the last few days. Ex-works prices
       of grade 65/17 silico-manganese have edge up to RMB7,400-7,600/tonne, from RMB7,300-
       7,500/tonne, with business reported in a range of RMB7,300-7,400/tonne basis ex-works. Producers
       are unwilling to sell silico-manganese 65/17 grade at RMB8,000/tonne delivered to customer due to
       high production costs. Offers have been raised to RMB8,300/tonne on delivered basis for delivery in the
       second half of this month.

       MANGANESE

       Chinese manganese prices have dropped again due to weak demand, despite the brief support given to
       the market last week by the increase in electricity tariffs. Mainstream prices have slid to RMB16,000-
       16,100/tonne, down RMB100/tonne. Many manganese producers claimed difficulties in concluding
       business as demand from downstream steel mills remains sluggish.

  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                               6
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
                                                                                         INDIA                                                                  back to index

       MOIL readies Rs 500-cr kitty for overseas acquisition in Indonesia, Turkey
       The Economic Times, 19/12/11

       KOLKATA: Manganese Ore India Ltd is considering building a Rs 500-crore war chest for buying mining
       assets abroad, most likely in Indonesia and Turkey.

       "We have floated expressions of interest for some smaller deposits in Indonesia and Turkey. However,
       we are yet to firm up any plans. Our teams have also visited these countries," said G P Kundargi,
       director (production & planning) at MOIL. "We may ideally look at an M&A kitty of up to Rs 500 crore for
       possible acquisitions."

       The state-run company's move comes at a time when domestic steel majors, who also make up for over
       90% of its customer base, are in various stages of expanding their steel-making capacity. Manganese is
       used in making steel to increase its strength and durability.

       MOIL has also been eyeing opportunities in South Africa, Gabon and Congo to raise its resource base
       in step with growing demand. Its growth plans are being driven by the estimated rise in demand for
       manganese in line with rising steel demand at home. With domestic steel demand expected to rise to
       120 million tonnes, India's demand for manganese ore is expected to touch 4.5 to 5 million tonnes by
       2012-13.

       In addition to overseas mines, MOIL is focusing on expanding its domestic mining operations. It plans to
       double its production to 2.2 million tonnes by 2020 from 1.1mt.

       "We are trying to reach deeper levels in existing underground mines to increase output," a company
       official said. MOIL currently operates 10 mines in the country, six in the Nagpur and Bhandara districts
       of Maharashtra and four in Balaghat district of Madhya Pradesh.

       MOIL has recently received approval from the Maharashtra government for a prospecting licence on
       814 hectares adjoining its mines in Nagpur district. "We have earmarked a sum of Rs 250 crore for
       exploration in the area over the next four to five years," the official said.

       Moil Presents Rs 54.10 Crore Dividend Cheque to the Steel Minister
       Press Information Bureau (PIB), 19/12/11

       The final dividend cheque of Rs. 54.10 crores was presented by Manganese Ore (India) Limited (MOIL)
       to the Union Minister of Steel Shri Beni Prasad Verma here today. Shri K.J. Singh, Chairman cum
       Managing Director of the Miniratna Category - I PSU presented the cheque to the Minister.

       The Minister reviewed the performance of MOIL and expressed concern over the company’s falling
       profits. Encouraging the company to perform better he asked MOIL to improve its performance and aim
       at becoming the foremost manganese ore producer of the country.

       During the year 2011-12 (April-November, 2011), the production of manganese ore was 6.42 lakh
       tonnes. MOIL achieved a total sales turnover of Rs. 593.45 Crores (provisional) during this period. The
       company earned profit before tax of Rs. 382.72 crores (provisional) and profit after tax of Rs. 255.59
       crores (provisional).

       MOIL declared a total dividend of 70%, out of which interim dividend of 25% has already been paid to
       the shareholders. Presently, the paid up capital of the company is Rs.168 Crores, 71.57% of which is
       held by the Government of India, 4.62% by the Government of Maharashtra, 3.81% by the Government
       of Madhya Pradesh and 20% by Public.




  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                               7
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       The company has been taking measures to meet the domestic demand by implementation of mining
       projects like deepening of existing vertical shafts and sinking of new shafts. The company has also set
       up joint venture companies with SAIL and RINL for manufacture of ferro alloys.

       Indian Market Report - Indian steel consumption low
       Metal-Pages, 13/12/11

       The Indian Minister of Steel, Shri Beni Prasad Verma has said recently that during 2010, India’s per
       capita consumption of finished steel stood at 55 kg, which was low when compared to the world
       average per capita consumption of finished steel of 206 kg and average of developed countries of 324
       kg. Low per capita consumption of steel in India is related to low per capita income level, large size of
       the population and less development of infrastructure.

       Ferro-silicon
       The Indian ferro-silicon market is stable at present with prices staying the same while demand remains
       low. Although the Chinese ferro-silicon market is on a slightly upward trend, Indian ferro-silicon is not
       following the same pattern. Traders in the spot market are lamenting weak demand and downward
       pressure on profit margins. Prices have bottomed out, said a producer, adding that some small
       converters were doing backhand business and selling under the market price to liquidate inventory.
       They are barely holding up and if the market doesn’t rebound they might have to shut shop, he stated.

       Silico-manganese:
       There is great uncertainty in the Indian market as prices of silico-manganese are falling continuously.
       Prices of silico-manganese in the domestic market are at around INR49,000/tonne. Prices are falling in
       the export market as well and are expected to go below $1,000/tonne from the present export prices of
       INR1,050/tonne. An Indian producer and exporter of the alloy said that he was concerned that prices
       are falling at such rapid pace that it was putting pressure on margins and hence they expected
       manganese ore producers to lower their prices.

       Maharashtra Elektrosmelt renamed as handrapur Ferro Alloy Plant
       Steel Guru, 13/12/11

       The Indian minister of steel Mr Beni Prasad Verma said that t Maharashtra Elektrosmelt Ltd located at
       Chandrapur in Maharashtra, with a capacity of 100,000 tonnes of ferro alloys was a subsidiary of Steel
       Authority of India Limited.

       It has now been merged with SAIL wef April 1st 2010 and has been renamed as Chandrapur Ferro
       Alloy Plant.

       The merger of CFP with SAIL is expected to align the development of the unit and related investments
       in line with the ferroalloy requirements of SAIL.

       In a written reply in the Lok Sabha he said that further, SAIL and MOIL have formed a Joint Venture
       Company namely SAIL and MOIL, Ferro Alloys Pvt Ltd to set up a Ferro Alloys Plant for production of
       high carbon Ferro Manganese and Silico Manganese at village Nandini, Bhilai (Chhattisgarh).

       Indian silicomanganese market slow
       Metal-Pages, 12/12/11

       The Indian silico-manganese market remains quiet due to weak demand from domestic and overseas
       market and sufficient supply in the market.

       Prices for silico-managese has been stable at around INR49,000-50,000/tonne and is expected to
       remain stable for the year end.

       A trader confirmed the depressed demand in the domestic market and said that there were few deals
       made in the local market and those with regular customers. He said that there is sufficient supply in the
       market, but due to weak demand, he does not expect decline in prices for silico-manganese in the
       domestic market.

  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                               8
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       A West-Bengal based trader said that prices for 60/14 silico-manganese have been stable at $900 FOB
       India, unchanged from last week. He said that the uncertainty of global markets backed by depressed
       demand from overseas buyers have lead to thin trading in the Indian export silico-manganese market.

       The trader said that other than few dollar falls in negotiations for bulk orders, he doubts that there will be
       a decrease in export prices before the holidays.

       MOIL e auction for ore, slag and ferro-manganese
       Metal-Pages, 08/12/11

       MSTC will e-auction high carbon ferro-manganese, slag and manganese oxides and dioxide ores on
       behalf of MOIL Ltd on 9 December.

       MOIL is looking to offer 758 tonnes of ferro-manganese, 1,950 tonnes of ferro-manganese slag and 542
       tonnes manganese dioxide ore.

       There are 10 lots in all for sale and the complete details, terms and conditions can be found on the
       MOIL website.


                                                                                     OCEANIA                                                                    back to index

       Montezuma Mining Company identifies DSO manganese potential at Butcherbird
       Proactive Investors, 15/12/11

       Montezuma Mining Company (ASX: MZM) has received results for a bulk sampling program recently
       completed at the Butcherbird Manganese Project, confirming direct shipping ore (DSO) potential.

       Six potential DSO localities have been identified with five tested in the current program via bulk
       sampling using scraping and trenching. Grades of +40% manganese have been achieved at key, larger
       tonnage localities.

       The test work was undertaken to determine if these occurrences could complement the global JORC
       resources by providing early production material with low capital and operational costs with the benefit
       of minimal processing requirements.

       On December 7 Montezuma increased the Butcherbird project resource to 119 million tonnes at 11.6%
       manganese following the completion of a series of updated estimates by Snowden Mining Industry
       Consultants.

       Importantly, the significant tonnages of DSO ore which could potentially be recovered represent
       important short term manganese inventories which are expected to enhance the projects' commercial
       outcome.

       The envisaged production from these areas is in addition to the work currently being completed as part
       of the Feasibility Study that is looking at long term production of up to 1 million tonnes of manganese
       ore from the existing JORC resources.

       Sampling program

       The test work emulated a simple mining and mobile processing method, with very low capital
       requirements and operational risk.

       Two sampling techniques were used; scraping, which removed the top 0.1 metres of material and
       trenching, which sampled the underlying 0.2-0.3 metres of material. The surface detrital manganese
       deposits are separate to the previously reported JORC resources.



  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                               9
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       The test work completed on the samples, which were collected in October of 2011, involved screening,
       washing and crushing only.

       Results so far suggest that a DSO lump product is achievable from these areas via simple surface
       mining, washing, screening and crushing, yielding the specifications, ≥40% manganese, <0.1%
       phosphate, <15% silicon dioxide, and <7% iron.

       The company is planning further work in 2012 to confirm DSO surface deposits size, recoveries and
       product grades.

       Bligh Resources identifies manganese targets at Manilla, readies for drilling at Kumarina
       Proactive Investors, 14/12/11

       Bligh Resources (ASX: BGH) which was minted less than a month ago after a successful IPO which
       offered 20 million shares at $0.25 to raise $5 million, is looking to move exploration forward quickly at its
       Australian based projects.

       Analysis of public geophysical work has identified 45 prospective anomalies at the Manilla Manganese
       Project in New South Wales, which the company considers could be prospective for manganese, tin,
       tungsten and copper. Boosting the prospectivity of the area, Manilla sits in the New England Orogen
       which hosts around 30 historical manganese mines.

       Bill Guy, managing director exploration, said that the company are now assessing further exploration
       activities for Manilla in 2012. "As we have previously reported, our immediate focus is the Kumarina
       Project in Western Australia and we are on track to commence a maiden drilling program at Kumarina
       next month.”

       Kumarina is strategically positioned immediately west of Montezuma Mining Company's (ASX: MZM)
       Butcher Bird project.

       Bligh has a third manganese project known as the Bootu Creek Two Project in the Northern Territory,
       positioned 40 kilometres south of the Bootu Creek Manganese Mine operated by OM Holdings.

       The company also has some gold focused interests, which include the Leonora Gold Project in Western
       Australia with tenements situated six kilometres southeast of the Tarmoola mine which has produced
       over 3 million ounces of gold.

       Montezuma Mining increases manganese resource
       Metal-Pages, 12/12/11

       Australian metals miner Montezuma Mining has increased its manganese/copper project Butcherbird
       project resource to 119 million tonnes at 11.6% manganese after the completion of a series of updated
       estimates by Snowden Mining Industry Consultants, according to a release this week.

       Snowden completed Resource estimates for seven additional deposits which produced further inferred
       resources of 70 million tonnes at 11.4% manganese using a 10% cut off.

       A further low grade resource of 55.9 million tonnes at 9.3% manganese was also calculated using an
       8% to 10% cut off.


                                                                                      EUROPE                                                                    back to index

       Miner offers to buy Areva’s Eramet stake - report
       Reuters, 14/12/11

       Areva has received an offer from a New Caledonian mining group for its 26 percent stake Eramet,
       according to a French paper, setting up a competition with France's strategic investment fund, which
       also wants the stake. Societe Miniere du Pacific Sud (SMSP), which has mining centres in New

  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             10
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       Caledonia and a nickel plant in South Korea, sent a formal offer to Areva on Tuesday, wrote les Echos,
       without citing its sources.

       The move comes after the FSI, France's sovereign wealth fund, said it wanted to close the deal to buy
       the stake as quickly as possible. The report did not mention a takeover price for the stake, which has a
       market value of about 650 million euros ($850 million).

       For Areva, selling off its Eramet stake and other non-core assets is part of its new strategic plan
       intended to help the nuclear reactor maker cope with lower demand after the Fukishima accident in
       Japan. On Monday, Areva announced plans on Monday to write off 2.36 billion euros from its accounts
       this year and make asset sales of 1.2 billion euros, but did not specify what activities it might sell.

       SMSP Chief Executive Andre Dang told Les Echos that by obtaining a board seat at Eramet "we could
       negotiate ... to ultimately obtain a majority holding in SLN", or Societe Le Nickel, which is Eramet's
       nickel mining unit in New Caledonia. The island of New Caledonia, a French overseas territory, has
       about a quarter of the world's known nickel resources.


                                                                                           CIS                                                                  back to index


                                                                      AFRICA & MIDDLE EAST                                                                      back to index

       Mining company loses case on technical point
       The Namibian, 14/12/11

       Mining company Purity Manganese yesterday failed with an attempt to get the High Court to dismiss a
       case in which a farm owner is trying to get the company ordered off his land. In a ruling given by Judge
       Dave Smuts, a special plea which Purity Manganese had raised in a case in which the company is
       being sued by farm owner Harald Metzger was dismissed with costs. With the special plea Purity
       Manganese was arguing that a notice in which Metzger claimed that the company was in breach of a
       prospecting and mining agreement between the company and Metzger had not been correctly delivered
       to Purity Manganese. The company wanted the court to dismiss Metzger’s case against it on that
       technical point.
       Purity Manganese is mining manganese in the area of Otjosondu, about 150 kilometres north-east of
       Okahandja. It employs about 350 people, the court had been informed. Metzger owns the farms
       Otjosondu and Ebenezer in this area, and the mining activity is taking place on his land. Purity
       Manganese and Metzger concluded the prospecting and mining agreement in September 2001.

       Nine years later, though, the relationship between them had deteriorated to such an extent that Metzger
       sent a notice to the company in July last year, accusing it that it was in breach of the agreement and
       warning that the agreement would be cancelled unless the company rectified the alleged breaches.
       Metzger subsequently also sued Purity Manganese in the High Court in a case in which he is asking the
       court to confirm the cancellation of the agreement and to order that the company should be ejected from
       his farms. Metzger is claiming that Purity Manganese has failed to comply with the agreement by not
       rehabilitating land where the company has completed mining operations, by starting to operate in new
       camps whereas mining operations had to be restricted to one camp at a time, by failing to maintain a
       road and building new roads without consulting him, and by failing to pay the required compensation
       due to him.

       Purity Manganese, which is denying the alleged breaches, has in turn accused Metzger of unlawfully
       preventing or attempting to prevent the company from entering into a further camp to do mining, of
       interfering with and preventing the company from exercising its mining rights, and of unlawfully
       attempting to cancel the agreement and trying to force a new agreement on the company. The company
       claimed damages of more than N$6 million from Metzger, but withdrew this counterclaim before the
       case was heard by Judge Smuts, it is recounted in his judgement.

       Metzger’s notice in which Purity Manganese was informed of its alleged breach of the agreement was
       delivered to its office in Windhoek on July 27 last year. Purity Manganese claimed this was not effective

  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             11
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       delivery in terms of the agreement, which states that a notice had to be sent to the company’s chosen
       address by registered mail.

       A postmaster of Namibia Post however testified that NamPost has never delivered mail to street
       addresses in Windhoek, such as the chosen address of Purity Manganese. As a result, it was
       impossible to deliver the notice to that address by registered mail, the judge found. He further found that
       the notice which was delivered was effective under the agreement. The dismissal of the special plea
       would mean that the case between Metzger and the company would now have to proceed in the normal
       course.

       South African mining output falls in Q3; sales increase
       Metal Bulletin, 09/12/11

       South African mining production declined by almost 7% in the three months ended October 2011, while
       physical sales showed a strong increase, according to figures published by Statistics South Africa on
       December 8. Mining output was 6.7% lower in the third quarter compared with the corresponding period
       of 2010. But physical sales of the metals increased by 17.7% to R93.5 billion ($11.5 billion) in the
       quarter, mainly because of increased gold sales, compared with R79.5 billion in the corresponding
       period last year.

       Iron ore contributed 6.6 percentage points to the increase, or R5.2 billion, while coal contributed 4.3
       percentage points, or R3.4 billion. In physical production volumes, iron ore registered an increase of
       10.5% for the quarter ending September 2011, compared with the corresponding period last year.
       Manganese ore also showed a positive increase for the period of 16.6%.

       But chromium ore, copper, nickel and coal made a negative contribution to the physical volumes
       produced for the quarter, with chromium ore decreasing by 4.5%, copper by 23.5%, nickel by 8.1%, and
       coal by 3.1%.

       The total value of sales for iron ore increased by 50.5% for the quarter to R15.5 billion, compared with
       R10.3 billion for the corresponding quarter of 2010. Chromium ore sales increased to R2.1 billion,
       compared with R1.8 billion in the corresponding quarter last year, while manganese ore sales edged
       2.4% higher to R2.5 billion, compared with R2.4 billion in July-September last year. Third-quarter nickel
       sales dived to R1.2 billion, from R1.4 billion a year earlier, while copper sales increased to R1.3 billion
       from R1.2 billion for the same period.

       "The statistics for mining is a good indication of the global uncertainty we are in at the moment," Dirk
       Kotze, director and gm at The Beijing Axis in Johannesburg, said. "It will get worse before it gets better.
       I can't see anything good to happen in the foreseeable future."


                                                                                   AMERICAS                                                                     back to index

       Ecometals Ltd provides update of developments under the sale agreement respecting the Serra
       do Navio Manganese Project
       Marketwire, 16/12/11

       Ecometals Limited (the Company) is providing an update today of current developments under the Sale
       Agreement dated March 31, 2011, as amended, between Asia Minerals Limited, as buyer, Noble Mining
       Ltd., as seller, and the Company, as guarantor, respecting the proposed sale by the Company to Asia
       Minerals of its indirect interest in the Serra do Navio manganese project in the northern Brazil state of
       Amapá.

       As previously disclosed, the obligation of Asia Minerals to complete the closing under the Agreement
       was subject to conditions, including that Asia Minerals be satisfied, in its sole discretion, with its due
       diligence with respect to the project. If on the due diligence completion date Asia Minerals was satisfied
       with the results of its diligence, Asia Minerals was to issue written confirmation to such effect. As
       disclosed on December 2, 2011, the last due diligence completion date for Asia Minerals to deliver its
       written notice of confirmation was extended at the request of Asia Minerals and by agreement of the

  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             12
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       parties to December 15, 2011. This was the fourth extension of the due diligence completion date under
       the Agreement.

       The reason for the last extension to December 15, 2011 was to give the Company time to consider Asia
       Minerals' proposal to reduce the purchase price that was originally to have been paid at closing, and
       instead to make the balance of the purchase price in an amount to be agreed payable contingent on the
       results of the metallurgical tests to beneficiate the manganese stockpile and the achievement of certain
       logistical matters. As part of these latest negotiations, Asia Minerals subsequently proposed that if the
       Company and Asia Minerals could not come to terms by December 15, 2011, that the December 15,
       2011 due diligence completion date be again extended for a further three-month period.

       After careful deliberation, the board of directors of the Company has determined that it is not in the best
       interests of the Company to agree to Asia Minerals' revised proposal, including its proposal to extend
       Asia Minerals' due diligence period for a further three month period to mid-March, 2012. The due
       diligence completion date of December 15, 2011 has now passed without Asia Minerals having
       delivered it written confirmation confirming that the result of its due diligence is satisfactory to it.

       Mr. Lamarque, the Chief Executive Officer of the Company, commented: "We are disappointed that
       after almost nine months of intensive efforts on the part of both executive teams, we have still not come
       to terms. We believe there is significantly greater value in this project than is reflected in AML's revised
       offer despite the current weakness in the manganese market. It is our priority to achieve the best
       possible value for shareholders and we will therefore explore alternative strategies with respect to the
       project. These include continuing discussions with Asia Minerals."

       DLA offering high-carbon ferromanganese
       Metal Bulletin, 14/12/11

       DLA Strategic Materials has offered high-carbon ferromanganese again under its basic ordering
       agreement in December after market participants showed increased interest.

       The DLA, which is offering 2,000 tons of high-carbon ferromanganese stored in Point Pleasant, W.Va.,
       did not offer any material in November and struggled to sell material in previous months due to poor
       market demand (AMM, Nov. 11).

       Domestic high-carbon ferromanganese prices are said to be holding at around $1,300 to $1,360 per
       gross ton.

       US ferromanganese market off 10pct as supply jumps
       Metal-Pages, 08/12/11

       The US high carbon ferro-manganese market has fallen some $130, or 10%, in the past few weeks due
       to a jump in supply as material typically exported to Europe has been diverted to North America, dealers
       told Metal-Pages this week.High carbon ferro-manganese spot prices are around $1,175-1,200 a long
       ton basis in-warehouse, from $1,310-1,330.

       Although US steel makers have been producing at a relatively stable rate of production at some 75% of
       rated capacities, their European counterparts have been cutting output and using their stocks of raw
       materials instead of renewed buying on the spot market.

       "The debt and economic problems in Europe have cut demand there and the result is that more ferro-
       alloys have found their way here."

       Dealers said material was being shipped by suppliers such as BHP Billiton, Eramet, Traxys and ENRC.
       Company officials could not be reached for comment.

       However, US dealers reckon steel production rates may hold around current levels through the first half
       of next year, which should be enough to see stronger ferro-alloys prices in the first couple of quarters at
       least. Steel production rates did drop about 3% recently, although that was due to the Thanksgiving
       national holiday in the States, dealers said.

  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             13
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       The European ferro-alloy sectors are currently negotiating Q1 delivery settlements and there has been
       no indication of any agreement yet.

       Economic volatility in Europe has caused many alloys buyers to delay placing orders, while in some
       areas the markets are seeing 6-8-weeks of order visibility, compared with a typical figure of some 14
       weeks, dealers there have said recently.

       And French mining group and ferro-alloys producer Eramet recently said it will idle one of its major
       furnaces at its Norwegian operations in the coming days - cutting production a fifth, according to
       industry sources. Eramet has shipped a considerable amount of material to the United States from
       Norway to support its Marietta operations, which has been running only two of three furnaces this year.

       US manganese alloys prices fall sharply on liquidations
       Platts, 07/12/11

       Manganese alloys in the US dropped sharply on liquidations, despite talk of better prospects ahead for
       steelmakers in the first quarter, market sources said Wednesday.

       The Platts high-carbon (76-78% Mn) high-carbon ferromanganese assessment fell to $1,220-1,250/lt
       FOB Pittsburgh/Chicago warehouses Wednesday from $1,300-1,325/lt a week earlier, FOB
       Pittsburgh/Chicago warehouse basis.

       The Platts 65% Mn silicomanganese assessment fell to 49-52 cents/lb FOB Pittsburgh/Chicago
       warehouses Wednesday from 53-55 cents a week earlier.

       Metals Week features 450 prices, complete news coverage, and in-depth analysis of global market
       developments around the world. Each weekly issue includes a wrap-up of the previous week's price
       movements, plus in-depth interviews with key market participants and outlooks for global supply and
       demand.

       A mini-mill was understood to have booked around 300 mt a quarter for 2012 on a fixed price basis at
       $1,230/lt delivered, netting to around $1,200/lt on an in-warehouse basis. And a trader reportedly sold
       an unspecified quantity of fines for December-January delivery at $1,150/lt in-warehouse Pittsburgh,
       netting back to $1,200/lt for standard lump material.

       Another mini-mill was in the market for 1,250 mt for Q1 delivery and several suppliers said they were
       offering material at between $1,220 and $1,250/lt on an in-warehouse basis. Final offers are due by
       close of business on Thursday.

       A mill in the western US was understood to have bought nine railroad cars of silicomanganese for Q1
       delivery at 53 cents/lb delivered, netting to 49 cents/lb in-warehouse Chicago. Previous business to
       consumers had been at around 53-55 cents/lb, although the market has been illiquid of late.

       Commenting on long-term contracts, an overseas alloys producer told Platts that the level of
       discounting in formulas being offered for 2012 was the biggest he had ever seen "in my whole career."
       He said it was reminiscent of the end of 2006 when there was discounting, followed by an "explosion" in
       the spot market in the first quarter of 2006.

       Speaking of today's lower spot prices, he said: "It's evidence that there is far more supply than demand.
       Think about it -- there's been more ferrochrome, more manganese production, more ferrosilicon
       production, more nickel production, but no new mills to speak of, except in China, so where is all the
       demand coming from? I just don't see it."

       But a trader said that prospects for the first quarter could be better.

       "Alloy prices are falling, yet things are looking a lot healthier in steel for the first quarter, especially in
       stainless, but the pressure is still there on some to liquidate," he said. "On silicomanganese, the extent



  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             14
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       to which the price has dropped in Europe has also been a factor here in the US, so the US price had to
       drop too."

       A purchasing agent at a steel mill said that he had received unsolicited offers for high-carbon
       ferrochrome for three to four truckloads at $1,230/lt and for a similar quantity of ferrosilicon at 92
       cents/lb, both delivered. He said he was also offered a truckload of silicomanganese for immediate
       delivery at 52 cents/lb delivered.

       "When you start getting unsolicited offers, it means only one thing: people want to get rid of material and
       the price always goes down," he said.

       A second buyer also reported receiving unsolicited offers of manganese alloys but was not in the
       market.

       "I don't really take them very seriously, because most of what I buy is long-term, and my regular
       suppliers know that I only ever go spot if they can't deliver more under contract and I really need
       material, so an unsolicited offer to me is useless," the buyer said.

       US silicomanganese prices fall 10pct, imports up
       Metal-Pages, 06/12/11

       The US spot silico-manganese market has fallen about five cents, or some 10%, in the past few weeks
       on increased imports as material has been diverted away from slumping markets in Europe to North
       America where steel production has been stronger, dealers told Metal-Pages this week.

       US silico-manganese prices are at 50-52 cents a pound, from 55-57 cents/lb basis in-warehouse.

       US steel mills, which had contracted big volume deals for silico-manganese around the start of the
       current quarter at 57 cents, are operating at some 75% of their production capacities.

       "It is not a fundamental reason that ferro-alloys prices have dropped, it is because suppliers are
       changing their shipping destinations against very weak demand in Europe," one dealer told Metal-
       Pages.

       Most European steel makers are operating at only half of their production capacity as the area struggles
       with stagnating economic growth, high unemployment levels and severe spending cuts in a battle to
       save the euro.

       Dealers said material was being shipped by suppliers such as BHP Billiton, Eramet, Traxys and ENRC.
       Company officials could not be reached for comment.

       However, US dealers reckon steel production rates may hold around current levels through the first half
       of next year, which should be enough to see stronger ferro-alloys prices in the first couple of quarters at
       least.

       Economic volatility in Europe has caused many alloys buyers to delay placing orders, while in some
       areas the markets are seeing 6-8-weeks of order visibility, compared with a typical figure of some 14
       weeks, dealers there have said recently.

       And French mining group and ferro-alloys producer Eramet recently said it will idle one of its major
       furnaces at its Norwegian operations in the coming days - cutting production a fifth, according to
       industry sources.

       Eramet has shipped a considerable amount of material to the United States from Norway to support its
       Marietta operations, which has been running only two of three furnaces this year.


                                                                     GENERAL INFORMATION                                                                        back to index


  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             15
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       Ryan’s Notes Weekly
       Ryan’s Notes, 19/12/11

       BULK FERROALLOYS

       US manganese metal prices fall

       Much of the first-quarter US bulk ferroalloy buying was completed last week. High-carbon
       ferromanganese prices dipped below $1,130 per lt, with sellers pushing formula contracts with
       substantial discounts. However, a few large buyers were insisting on buying some of their requirements
       on a spot basis to influence the formula. “Straight formula contracts are a much harder sell,” one
       supplier said. A buyer agreed, saying that the suppliers rushed everyone into formula contracts on the
       assumption spot sales would be limited. However, with the US market now the premium market, there
       seems to be plenty of material from other sources.

       Medium-carbon ferromanganese prices were also marginally lower, while low-carbon ferromanganese
       prices have yet to react. However, when annual contracts expire, more US consumers are expected to
       move at least some of their requirements to fixed/formula deals.

       Ferrosilicon tags were also slightly softer, with lots of material being offered at the 88-91¢ level.
       However, some sellers were predicting a bounce in early 2012, saying that legal exports from China
       have stopped and that all the uncommitted metal which is currently being offered cheaply will be
       exhausted by then.

       US manganese metal prices fell sharply. Mills were able to buy spot at less than $1.63 per lb, and at
       least one seller offered at $1.55. However, the material was suspect.

       The US silicomanganese was definitely being pulled two ways last week. After falling to 49¢, the
       previous week, some major sellers made it known that they weren’t chasing the market down. As a
       result, multiple truckload businesses were done as high as 52.75¢ per lb in warehouse last week. And,
       with Privat/Felman controlling over 50% of the US market with its US production and Georgian material,
       it seemed logical that some market discipline could firm the market. On the other hand, a few buyers
       said major sellers were still willing to “match” prices on the premise that the suppliers didn’t want to lose
       market share.

       In Europe, one large mill proffered a silicomanganese price of €750 per mt, ddp, for all its mills. One
       supplier reportedly countered at €760-775, but the jury was still out.

       DLA offered 2,000 tons of high-carbon ferromanganese at the December BOA. The 76.76% Mn
       domestically produced material is at Pt. Pleasant, WV. The minimum quantity was 500 tons.

       First-quarter manganese ore negotiations were plodding along last week. A few high-grade ore sellers
       were refusing to match BHP Billiton’s recent sharp drop in prices. “I don’t care what BHP Billiton is
       doing. I don’t think that level of price decrease is justified,” one seller said. The problem is that BHP
       Billiton’s motives are suspect. Many of the large Western ore miners believe BHP Billiton is waging a
       war to drive out the marginal miners, including most, if not all, the new entrants in South Africa. “There
       is no way anyone can get financing for a new project based on BHP Billiton’s ore price,” one financial
       analyst said. “And, there is no assurance that Billiton might just lower it again.”

       Even second-tier Western miners say the new prices jeopardize their existence and make long-term
       planning impossible. If ore prices remain static at the new level or even go down, most analysts believe
       consolidation is the only alternative. “There are just too many miners and no coordination,” one analyst
       suggested. “There are a lot of mines up for sale, but the sellers want unrealistically high prices based on
       expectations. Would-be buyers are looking at present value, however.”

       In the meantime, BHP Billiton shows no signs of slowing down expanding its ore or manganese alloy
       capacity expansions.

       BULK Notes


  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             16
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       The US imported 209,429.1 mt of high-carbon ferromanganese in the first 10 months of 2011 and
       7,621.8 mt in October vs. 160,770.1 mt and 26,510.6 mt, respectively, in the same 2010 periods,
       according to the US Dept. of Commerce and the ITC. The major suppliers in October (first 10 months in
       parentheses) were: South Africa, 5,875 mt (161,869.9 mt); Norway, 700 mt (7,119.5 mt); India, 428.6 mt
       (428.6 mt); Korea, 400 mt (1,830 mt) and Ukraine, 0 (26,056.7 mt).

       US imports of medium-carbon ferromanganese were 65,852.9 mt in the first 10 months of 2011 and
       3,527.4 mt in October vs. 77,629.6 mt and 3,339.1 mt, respectively, in the same 2010 periods. South
       Africa supplied 2,970 mt in October and 21,849.4 mt in the first 10 months of 2011, while there were no
       arrivals from Korea in October but for the first 10 months of 2011, Korea supplied 26,500 mt. Mexico
       shipped 357.4 mt in October, while Norway supplied 200 mt.

       The US imported 2,754.3 mt of low-carbon ferromanganese in October and 30,045.7 mt in the first 10
       months of 2011 vs. 1,196.9 mt and 35,571.8 mt, respectively, in the same 2010 periods. Major suppliers
       in the first 10 months of 2011 (October in parentheses) were: China, 15,820 mt (130.9 mt); Mexico,
       7,958.1 mt (1,000 mt); and Norway, 4,791.7 mt (1,623.4 mt).

       The US imported 14,650.9 mt of silicomanganese in October—the lowest monthly total of 2011—and
       312,415.5 mt in the first 10 months of 2011 vs. 33,124 mt and 244,482.8 mt, respectively, in the same
       2010 periods. The major suppliers in October (first 10 months in parentheses) were: South Africa,
       9,590.5 mt (112,640.1 mt); Australia, 2,274.2 mt (42,040.9 mt); Norway, 1,719.1 mt (33,458.7 mt);
       Mexico, 1,000 mt (10,400 mt). Georgia, which supplied 100,208.1 mt in the first 10 months of 2011,
       didn’t Customs clear any silicomanganese into the US in October.

       The US imported 12,105.3 mt of at least 99.5% manganese flake in the first 10 months of 2011 and
       1,353.1 mt in October (the lowest monthly total of 2011) vs. 14,808.5 mt and 1,057.2 mt, respectively, in
       the same 2010 periods. China supplied 10,434.5 mt in the first 10 months of 2011 and 446 mt in
       October.

       US raw steel production was 1,840,000 net tons in the week ended Dec. 10, 2011 while the capability
       utilization rate was 74.3%, or down 0.9% from the previous week when production was 1,857,000 tons
       and the rate of capability utilization was 74.9%. The Dec. 10, 2011 output represented a 11.2% increase
       from the same week in 2010 when output was 1,655,000 tons while the capability utilization then was
       68.4%. Adjusted year-to-date production through Dec. 10, 2011 was 89,882,000 tons at a capability
       utilization rate of 74.6%, or a 7.5% increase from the 83,604,000 tons during the same period last year
       when the capability utilization rate was 70.4%.

       Broken down by districts, production for the week ended Dec. 10, 2011 was: Northeast Coast, 132,000
       tons; Pittsburgh/Youngstown, 152,000 tons; Lake Erie, 48,000 tons; Detroit, 108,000 tons;
       Indiana/Chicago, 449,000 tons; Midwest, 253,000 tons; Southern, 617,000 tons and Western, 81,000
       tons.

       Manganese ore production by six major firms in 9M 2011 up by 2pct YoY
       Steel Guru, 17/12/11

       Production figures of manganese ore by six major mining companies in the nine month period of 2011
       was 13.375 million tonnes, up by 2.2% YoY from 13,088 million tonnes in the same period of 2010,
       covering already the losses in production caused by the bad weather and mine accidents in South
       Africa and Australia in the first quarter.

       The remarkable increases were achieved mainly by the expansions at Vale's mines, i.e. Azul and
       Urukum. Vale's ore production in the nine months of 2011 was 1.798 million tonnes, largely up by
       30.9% from the same period in 2010.

       Comilog also contributed to the increases by gradually expanding mining operations to reach 2.454
       million tonnes in the nine months in 2011, up by 7.5% YoY from the same period of 2010.




  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             17
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       Production by BHP Billiton and Assmang in the nine months of 2011 fell short year on year due to the
       reasons as mentioned above, but the Australian miner reached a fairly high level of production in the
       third quarter.

       Price cut by 13% to 20% of the ore applicable to the shipments for January 2012 were announced by
       BHP Billiton suddenly last week. The factors to note behind the price cut is a trend of oversupply of ore
       and softening of ferroalloy prices mainly seen in the Chinese domestic sectors.

       (Sourced from TEX Report Limited)

       Italy’s Tenova buys Bateman Engineering
       Mining Weekly, 13/12/11

       Italian engineering group Tenova said on Tuesday it has acquired Bateman Engineering, a global
       engineering project house with its main operational office in Johannesburg.

       Tenova CEO Gianluigi Nova said the acquisition would enable the company to strengthen its global
       network.

       “The acquisition also enables Tenova to further broaden its portfolio of products in a market expected to
       grow constantly in the long term,” he added.

       Tenova is a global supplier of advanced technologies, products and services for the iron and steel and
       mining industries. It has about 3 100 employees, operates through more than 30 companies located in
       22 countries on five continents and reports revenues of $1.5-billion.

       Bateman Engineering executive chairperson John Ferreira said that the acquisition was an “exciting
       development.”

       “This is a milestone in the company’s history. Being part of a larger engineering company and backed
       by Tenova and its parent Techinct, a respected international organisation, will be invaluable to Bateman
       and Delkor’s goals of significantly increasing our share of the global mining and metals market, together
       with the other brands that form part of the Tenova mining and metals division,” he told Mining Weekly
       Online.

       Ryan’s Notes Weekly
       Ryan’s Notes, 12/12/11

       BULK FERROALLOYS

       US SiMn prices collapse

       The US silicomanganese market crumbled early last week. Bargeload businesses were done early last
       week at 49¢ and as soon as that sale became known, other buyers started demanding the same price
       for smaller tonnages. As soon as that level was established, mills said it was the ceiling. “It’s getting
       close to the cost of production for some smelters,” one analyst suggested, “but that doesn’t mean much.
       There is no law saying that suppliers can’t lose money.” Prices for other US manganese alloys will be
       tested in the coming weeks as more mills start looking for their first quarter and half year requirements.
       Because of the lag in formula-based contracts, the use of spot prices seems to be increasing.

       Meanwhile, US ferrosilicon prices also were weaker as sellers tried to compete for the little business
       available in the market. There were a number of US RFQs out for most bulk ferroalloys; awards are
       expected this week. Despite higher power costs, Chinese ferrosilicon prices were at $1,400 per mt,
       f.o.b., and large smelters apparently dug in their heels rather than decrease prices. One large smelter
       said it was losing about $50 to $70 per mt, basis $1,400. However, resellers weren’t interested in the
       smelter’s problems. They pointed out that the $1,400 price was not competitive in the export market and
       there was plenty of smuggled Chinese silicon available at much cheaper prices. “Legal ferrosilicon has
       become like China’s manganese alloys—totally dependent on domestic demand,” one seller admitted.
       “And, right now the Chinese economy doesn’t look that good.” The Chinese government reduced the

  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             18
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       minimum export price for 75% ferrosilicon to $1,440 per mt, f.o.b. from $1,500 per mt, and the price of
       72% grade to $1,420 from $1,480 per mt. The refined material price with low Al content has been
       reduced to $1,600 from $1,700. However, actual sales prices are lower and even then legitimate
       exports are being supplanted by smuggled material which was being offered as low as $1,250-1,280 for
       75% grade. Ferbasa sold 5,344 mt of 75% ferrosilicon in October, down 41.4% from the same 2010
       period.

       Morgan Stanley’s grim view of manganese

       Morgan Stanley didn’t have a lot of good things to say about manganese and by default, Eramet and
       ARM. The investment house said the downside risk in manganese was exacerbated by elevated stocks
       and lack of producer discipline. It pointed out that ore stocks at Chinese ports were around 3.7-million
       mt, or more than 90 days of consumption, and ore output from major producers continued to rise
       sequentially despite softening market conditions. According to Morgan Stanley, third-quarter ore output
       of the five largest manganese producers increased 11% quarter-on-quarter and 6% year-on-year. In
       addition, manganese alloy prices were going down on weakening demand. Manganese has been the
       investment company’s least preferred steelmaking raw materials/alloy since it released its third-quarter
       playbook. And, current developments suggest that the risks to its bearish outlook are increasingly to the
       downside.

       Eramet is trading at a significant discount to Morgan Stanley’s price target. Morgan Stanley believes
       near-term performance will be dictated by potential earnings downgrades. The manganese business
       constitutes around 62% of the Eramet’s earnings. While Eramet operates a high-quality, low-cost
       manganese business that will continue to generate profits even under a bear-case commodity price
       scenario (given its position on the cost curve); nevertheless, Morgan Stanley believes the relatively
       elevated weight of the manganese business within the company’s portfolio raises risks to 2012 earnings
       expectations. In its mark-to-market 2012 earnings estimate, Morgan Stanley sees the manganese
       division having revenues of €328-million, with ore contributing €236-million on 3.9- million mt of
       production of around 44% Mn at a cash cost of $2.50 per mtu. The sales price estimate was an
       optimistic $5.40 per mtu. Manganese alloy revenue was estimated at €43-million with production of
       850,000 mt of silicomanganese, high-carbon and low-carbon ferromanganese at an average EBITDA
       per mt of €50.

       Whereas manganese used to be a crucial element of ARM’s value proposition (via Assmang), its
       importance has steadily diminished. Compared to one year ago, the value proposition attributable to
       manganese for ARM has virtually collapsed on the back of the increasingly poor medium- and even
       longer-term outlook of pricing. According to Morgan Stanley, it has fallen from around 21% of estimated
       EV to 4%. In terms of total company valuation, a significant re-rating of the iron ore business has offset
       this. Sentiment towards ARM may be affected by bearish news flow around manganese pricing. Falling
       manganese prices are also likely to be partially offset by a weakening rand. The investment bank
       forecast an average rand/dollar exchange rate of ZAR7.33 for ARM’s 2012 financial year. With spot
       rates having weakened sharply to around ZAR8.15 to the dollar, this is likely to be the more important
       macro driver for the stock in the short to medium term. ARM’s production and sales volumes are also
       under threat, and Morgan Stanley expects pre-production to have peaked in 2011 at just over 3-million
       mt and to fall to around 2.4- million mt in 2013. This is driven largely by limits to export infrastructure
       and the reallocation of rail away from Assmang towards new entrants to the Kalahari basin.

       BULK Notes

       US raw steel production was 1,857,000 net tons in the week ended Dec. 3 while the capability utilization
       rate was 74.9%, or up 2.3% from the previous week when production was 1,815,000 tons and the rate
       of capability utilization was 73.3% The Dec. 3 production represented a 12.5% increase from the same
       2010 period when output was 1,651,000 tons and the capability utilization was 68.3%. Adjusted year-to-
       date production through Dec. 3, 2011 was 88,042,000 tons at a capability utilization rate of 74.6% or a
       7.4% increase from the 81,949,000 tons during the same period last year, when the capability utilization
       rate was 70.5%. Broken down by districts, production for the week ended Dec. 3, 2011 was: Northeast
       Coast, 134,000 tons; Pittsburgh/Youngstown, 155,000 tons; Lake Erie, 44,000 tons; Detroit, 112,000
       tons; Indiana/Chicago, 468,000 tons; Midwest, 258,000 tons; Southern, 603,000 tons and Western,
       83,000 tons.


  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             19
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       Japan imported 33,026 mt of ferrosilicon in October, down from 38,095 mt in September, and down
       from 51,426 mt in October 2010. The imports from China were 21,391 mt, almost flat from 21,681 mt in
       September, and sharply down from 33,953 mt in October 2010. The imports for the first 10 months of
       2011 were 380,945 mt, down from 411,385 for the same 2010 period. Imports from China were 229,337
       mt (280,105 mt); 66,482 mt from Russia (65,622 mt); and 49,663 mt from Brazil (45,331 mt).

       Japan’s imports of silicomanganese were 203,219 mt for the first 10 months of 2011, down from
       221,654 mt for the same 2010 period. Major suppliers were: India, 103,705 mt India (99,219 mt);
       Kazakhstan, 34,580 mt (29,330 mt); Vietnam, 18,442 mt (11,279 mt); and 14,465 mt from Ukraine
       (23,708 mt). Imports from China nosedived to 4,313 mt from 27,606 mt.

       Global manganese ore prices start falling
       Steel Guru, 10/12/11

       TEX reported that the stably maintained seven month old manganese ore prices came to the end. The
       fall in the prices this time implies turbulence in the ore prices ahead in 2012 under the softened market
       of manganese group ferroalloys and development in progress of the big manganese mining project in
       Kalahari, South Africa with scheduled start up in 2012-13.

       In such a sense, it is a concern of the market whether the big price drop, made known late last week, of
       the ore for the shipments to China in January 2012 would mean an opening of a turbulent year for the
       ore. As a matter fact, the buyers and users in China were not at all satisfied with the unchanged
       December prices and the market took it as a matter of time before the ore prices would fall.

       The fall, which had been thought, by the most of the market players, rather small like more or less USD
       0.50 per dmtu, was much bigger, i.e. down by 13.7 to 20.4%, in other words, by USD 0.75 per dmtu for
       the most commonly traded grade (Mn: 46%) and by USD 0.90 per dmtu for the metallurgical grade (Mn:
       48%, fine).

       More details of the price change were as follows, medium grade lumps (Mn: 46%): down to USD 4.75
       per dmtu by 13.7%, low grade lumps (Mn: 38 - 40%): down to USD 4.10 per dmtu by 14.6%, and
       metallurgical (high) grade: down to USD 4.30 per dmtu by 20.4%. This year manganese ore prices fell
       twice, for March shipments and for May shipments. Since June the prices have been kept unchanged.

       Even with the drop, the uncertainties over the market have not totally gone away. Firstly, the prices of
       manganese group ferroalloys, such as the Indian silicomanganese and Korean high carbon
       ferromanganese, are forecasted to fall further, as both countries have excessive production capacities
       casting downward pressure over the price to dip into below USD 1,000 per tonne in the near future. The
       producers are said to be already operating unprofitably at the current prices, i.e. USD 1,050 per tonne
       for the silicomanganese and USD 1,100 per tonne for the ferromanganese, so pressure from the
       producers will continue over the ore prices to go even lower.

       Secondly, the port stocks in China of the ore stands currently at some 3.7 million tonnes, which
       definitely have forced the cargo owners dealers to accept large reevaluation loss in the books from the
       price drop this time and to accelerate worsening of their cash positions.

       The lowest in the ore prices in the recent years was USD 3.50 per dmtu for the medium grade lump
       (Mn: 44%) as recorded in July and August of 2009. At that time the prices recovered fairly quickly from
       the low level to USD 5.80 per dmtu, then to USD 6.00 per dmtu and then to USD 6.50 per dmtu towards
       the year of 2010. Actually the USD 3.50 per dmtu level was the breakeven point for most of the mines
       and therefore it was understood by the market as a kind of bottom of the ore prices.

       The new prices are still far away from the commonly understood level of the bottom of USD 3.50 per
       dmtu, and there could be some room for further drops. It is fair to say that some more time is needed
       before the market of ores gets stabilized as the output cut by the Chinese ferroalloy producers started
       only recently. Under the good news of the credit control easing since last week in China, buying
       interests in iron scraps and iron ores came back, but market views that it will take some more time for



  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             20
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       the ferroalloys to regain appetite from users. It is noteworthy whether the easing would do anything
       good for the ferroalloys.

       (Sourced from TEX Report Limited)


                                                                                 STEEL NEWS                                                                     back to index

       CHINA STEEL WRAP: Rebar futures get last-minute lift from RRR cut rumour
       Metal Bulletin, 16/12/11

       Shanghai rebar futures lost just 0.1% on the week as market rumours that China will cut its bank
       reserve ratio for a second time this year saw the SHFE contract make a small rebound on Friday.

       Shanghai futures exchange May rebar settled at 4,159 yuan ($648) per tonne on Friday, up 26 yuan
       from Thursday but down 6 yuan compared to a week ago.

       "I think rebar has bottomed out, as there is clear signal that the government is going to ease its previous
       tightening monetary policy," an analyst in Beijing said.

       The Shanghai Composite Index rose 2.01% to 2,224.84 points on Friday, due to the news.

       March hot rolled coil futures prices on the Shanghai Steel Exchange Center (SSEC) settled at 4,274
       yuan per tonne on Friday, up 47 yuan from Thursday and up 0.56% from last Friday.

       Prices in the spot market remain quiet on Friday.

       "Demand is weak, but stocks remain low, so prices will stay at current levels for a while," an analyst in
       Shanghai said.

       Spot prices were also down slightly on the week. Shanghai prices of 16-25mm diameter grade III rebar
       were at 4,200-4,530 yuan per tonne on Friday, unchanged from Thursday, but down 30 yuan from a
       week ago.

       While wire rod prices were at 4,320-4,370 yuan per tonne, also unchanged from Thursday but down 10-
       20 yuan from last Friday

       Spot prices of hot rolled coil 5-12mm thickness in Shanghai were at 4,200-4,230 yuan per tonne on
       Friday, unchanged from Thursday and up 10 yuan from a week ago.

       The price of 150mm billet in Tangshan fell further to 3,780 yuan per tonne on Friday, down 40 yuan
       from Thursday.

       Offers of 63.5% Fe Indian fines were unchanged from Thursday at $141-142 per tonne cfr China, but
       down $4-5 from last Friday.

       63.5% Fe cfr China: $141-142 cfr
       (Thursday: $141-142 cfr
       Friday December 9: $145-147 cfr)

       CHINA STEEL WRAP: Prices fall amid economy gloom
       Metal Bulletin, 15/12/11

       Both rebar spot and futures prices fell again on Thursday, as domestic equities markets extended
       losses due to worries of a worsening economy in China. Shanghai Futures Exchange May rebar settled
       at 4,123 yuan ($643) per tonne on Thursday, down 26 yuan from Wednesday. Prices of 16-25mm
       diameter grade III rebar dropped 20 yuan to 4,200-4,530 yuan per tonne, while wire rod prices were
       unchanged at 4,320-4,370 yuan per tonne.


  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             21
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       "The value of the renminbi against the dollar has continued to slide for nearly ten days, which means
       foreign funds are leaving China, and the economic situation of China may be even worse than what we
       can feel now," an analyst in Shanghai said.

       Renminbi against dollar average daily bid prices have slipped to 0.1562 on Thursday, down from 0.1575
       on December 6 when it first started to fall. The Shanghai Composite Index lost 2.4% from Wednesday
       to 2,180.90 points, its lowest level since March 2009.

       An improved PMI (purchasing managers’ index) did little to ease investor worry today. The HSBC
       preliminary PMI index, a gauge of manufacturing sentiment, rose to 49.0 in December, up from 47.7 in
       November.

       Spot prices of hot rolled coil 5-12mm thickness in Shanghai were at 4,200-4,230 yuan per tonne on
       Thursday, unchanged from Wednesday. March HRC futures prices on the Shanghai Steel Exchange
       Center (SSEC) settled at 4,227 yuan per tonne on Thursday, down from 4,245 yuan per tonne on
       Wednesday.

       Falling raw materials prices also dampened sentiment.

       The price of 150mm billet in Tangshan fell another 10 yuan to 3,810 yuan per tonne on Thursday, while
       offers of 63.5% Fe Indian fines dipped $2-3 to $141-142per tonne cfr China.

       63.5% Fe cfr China: $141-142 cfr
       (Wednesday: $143-145 cfr)

       China holds off on US scrap imports as prices rise
       Metal bulletin, 15/12/11

       Chinese steel mills and scrap traders have shelved US scrap imports, due to high prices and sluggish
       downstream steel market.

       “The high prices to Turkey means that prices to China could be above $475 cfr, which is way above
       Chinese buyers’ expectations,” a steel mill source in Shanghai said. "Chinese steel mills are only
       comfortable with the prices up to $450 cfr at the moment," he said.

       “We could easily lose money due to the time cost and fluctuations of exchange rates, if we book scrap
       imports at above $450,” a trader in Tianjin said.

       Domestic scrap prices in eastern China stood at 3,350-3,500 yuan ($523-546) per tonne with tax on
       December 15, the average of which is about 100-200 yuan ($16-31) per tonne lower than the imported
       material.

       Shagang, China’s largest scrap consumer, is keeping its scrap bids at 3,300-3,340 yuan per tonne,
       unchanged since late October.

       “Deliveries of domestic scrap to Shagang are low at the moment as its bids are below market levels, but
       the weak demand for steel means that it is unlikely to raise its scrap purchase prices,” a trader in
       Shanghai said. “Steel mills in China will inevitably scale back production or carry out maintenance in the
       coming weeks before and during the Chinese New Year due to pale demand for steel, and thus demand
       for raw materials will reduce as well,” he said.

       MB’s daily ferrous scrap index cfr Iskenderum jumped to $450.10 per tonne on an HMS1&2 (80:20)
       basis on Wednesday, up by more than $10 previously.

       “The price jump of international scrap could be short-lived, as Turkish mills increased bookings only
       because they want to restock scrap before North America and Europe suspend business for
       Christmas,” an industry analyst in Shanghai said.

       Pullback in capacity rates drags US steel production lower


  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             22
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       Metal-Pages, 14/12/11

       The production of steel in the United States dipped lower last week as mills trimmed back capability
       utilisation rates, according to latest figures from the American Iron and Steel Institute. Domestic raw
       steel production for the week ending December 10 was 1,840,000 net tons, down 0.9% from the week
       prior when output was 1,857,000 tons.

       It comes as steel mills operated at a capability utilisation rate of 74.3% compared with 74.9% the week
       before. But the current week production was up 11.2% on the same period last year when output was
       1,655,000 tons and the capability utilisation rate was 68.4%.

       For the year-to-date, production through December 10 was 89,882,000 tons at a capability utilisation
       rate of 74.6%. This was a 7.5% increase from the 83,604,000 tons during the same period last yea,
       when the capability utilisation rate was 70.4%.


                                                                             OHES & SCIENCE                                                                     back to index



                                                                                          EMM                                                                   back to index

       China manganese market weakens in line with demand
       Metal-Pages, 14/12/11

       The Chinese manganese market has softened further in the past week in line with weak demand,
       dealers told Metal-Pages on Tuesday.

       A Hunan-based producer said he cannot afford to offer below RMB16,000/tonne. “We have to buy
       manganese ore, so our costs are higher and we have been suffering financial losses since prices fell
       below RMB17,000/tonne,” he said. He said he has cut his prices RMB100/tonne from the old offer price
       of RMB16,100/tonne, although sales have been slow.

       Producers without their own manganese ore mines have been holding their prices at RMB15,800-
       16,000/tonne, from RMB16,000-16,200/tonne.

       Producers with their own mines are offering metal as low as RMB15,500-15,600/tonne, from
       RMB16,000-16,200/tonne.

       A Guangdong-based trader said he has received offers of RMB15,500/tonne, off RMB500/tonne in the
       past week. “Producers in Yunnan and Guizhou have price advantages with in-house ore supply, so they
       can afford more prices losses,” the Guangdong dealer reckoned.

       Export demand has been sluggish and prices have declined in line with the domestic market. “We have
       reduced export offers from $3,200/tonne FOB to $3,150/tonne FOB, but no buyers have shown interest
       in the new prices,” the Guangdong dealer said.

       China manganese flake prices down as demand falters
       Metal Bulletin, 13/12/11

       Manganese flake prices in China fell this week as trading activity slowed and mills reduced their bid
       prices.

        "As far as I know, producers plan to not to sell if prices continue falling, as the prices are already low,"
       the analyst said.




  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             23
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       "We have cut our operating rate to just 50% and only supply to our old customers, not new buyers," a
       producer in Hunan said, adding that there some smelters had already shut after last week’s rise in
       energy tariffs.

       Stainless steel mills, facing weak demand in their own markets, reduced their purchase price for
       manganese flake further this month by 100-150 yuan to 16,000-16,100 yuan per tonne, including
       delivery.

       "Prices may stabilize in the near term on costs, but as for when they could rally again, it’s hard to say,"
       a trader in Guangxi province said.

       The Hunan producer agreed, adding that tightness in supply due to the shutdown of smelters as well as
       the unwillingness of producers to cut prices could protect manganese flake prices from further falls.

       Power tariff hike puts pressure on manganese producers in China
       Steel Guru, 09/12/11

       Interfax-China reported that last week hike in power tariffs has upped the pressure on China's
       manganese industry but healthy stockpiles held by large traders and producers will help delay the
       effects.

       The National Development and Reform Commission raised industrial, commercial and agricultural
       power tariffs by an average of CNY 0.03 per kilowatt hour effective December 1st 2011.

       China's deposits of manganese, mainly used in the production of stainless steel, special steel and
       carbon steel, are mostly located in south central China in the provinces of Hunan and Guizhou along
       with Chongqing Municipality and the Guangxi Zhuang Autonomous Region.

       These places saw above average power hikes of CNY 0.037, CNY 0.0499, CNY 0.0378 and CNY
       0.0353 per KWH respectively increasing production costs for manganese iron by an average of about
       CNY 125 per tonne and electrolytic manganese by around CNY 215 per tonne.

       Mr Jiang Hanmei an analyst with SMM Information Technology said that Electrolytic manganese
       production costs now stand between CNY 16,000 and CNY 16,500 per tonne above the current market
       price of around CNY 16,000 per tonne. The weak performance of the stainless steel sector this year has
       made it difficult for producers to pass extra costs downstream.

       Mr Yu Liangui senior analyst of Mysteel said that most stainless makers are operating in the red and are
       holding back on raw material purchases. The price of 304 stainless steel has fallen to around CNY
       20,000 per tonne at present from about CNY 27,000 to CNY 29,000 in February.

       Mr Ding Yongheng analyst of Lange Steel said that manganese inventories among producers and large
       traders are likely to remain high into the Q1 next year, to some extent insulating the industry from the
       effects of rising production costs. China's tight monetary policy, however has limited stockpiling among
       small traders.

       Mr Jiang said that a trend for relocating production to cheaper parts of the country, as seen in the
       aluminum industry, is unlikely to emerge in the manganese sector.

       The analyst said that China's manganese resources are concentrated in Hunan, Guizhou, Chongqing
       and Guangxi and it isn't viable for producers to move into areas that lack deposits. While power
       accounts for about 40% of aluminum production costs, the figure is only 29% for manganese with
       manganese ore accounting for more than 50%.

       Mr Jiang said that West China's Xinjiang Uyghur Autonomous Region offers the only viable option for
       relocation. It has some manganese reserves and many steelmakers have begun to build capacity there,
       so manganese producers could stay close to buyers and cut transportation cost. The region is also rich
       in energy resources and enjoys low power tariffs.



  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             24
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       (Sourced from Interfax-China)

       CPM sees electrolytic manganese flake prices rising
       Metal Bulletin, 09/12/11

       Electrolytic manganese prices will rise steadily over the next decade as production costs in China, the
       world’s dominant producer, continue to rise, CPM Group said in a recent report.

       Rather, CPM expects electrolytic manganese prices to average $1.58 per pound in 2012, $1.70 per
       pound in 2013 and $1.80 per pound in 2014.

       That’s up from an average price of about $1.45 a pound in warehouse in November, according to AMM
       sister publication Metal Bulletin.

       Between 2012 and 2021, prices are expected to average $1.98 per pound, CPM said.

       The research house still expects nearly 90 percent of global electrolytic manganese metal supply in
       2021 to come from China, but said that between 2017 and 2021, the country could at times become a
       small net importer of the material.

       The rise comes mainly on the back of increased use of 200-series stainless due to China’s rapid
       urbanization.

       China Jan-Oct 2011 manganese briquettes exports down 8pct
       Metal-Pages, 09/12/11

       China’s exports of manganese fabricated products, mostly in the form of manganese briquettes,
       decreased by 7.7% to 88,599 tonnes in the first ten months of 2011, according to official customs data.

       Prices averaged $3,136/tonne – up 26.9% from the same period last year.

       China’s main export destinations in the first ten months of 2011 were:

       Destination                           Tonnes                   Y-o-Y change                    Avg. price US$/tonne                             Y-o-Y change
       South Korea                            44,780                     +2.6%                             $3,073                                         +26.5%
       Russia                                  9,568                    -17.6%                             $3,162                                         +22.7%
       Netherlands                             6,884                    -45.7%                             $3,430                                         +34.8%
       India                                   6,808                  +109.8%                              $3,154                                         +18.1%
       United States                           6,185                   +14.8%                              $3,191                                           +28%
       Japan                                   5,050                    -37.9%                             $3,199                                         +34.7%
       Brazil                                  3,614                    -33.1%                             $3,001                                         +24.1%
       Ukraine                                 1,790                    +258%                              $3,280                                         +44.7%


                                                                                          EMD                                                                   back to index

       Toda Kogyo, Mitsui to launch new Li-ion battery brand
       Metal-Pages, 16/12/11

       Japan’s Toda Kogyo and Mitsui Engineering and Shipbuilding are going to build a factory to produce
       2,400 tonnes of mid- and large-size lithium-ion batteries annually.

       The new factory, to be build in Chiba, near Tokyo, will be 49% owned by Toyo and 51% by Mitsui, with
       a brand launched next year.

       A statement by the companies read that a benefit of the batteries is that they do not use rare metals,
       and that they are likely to be used much more in the future as Japan targets the use of environmentally
       friendly vehicles and “smart grid” electricity systems for residential areas.


  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             25
The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.
       “Plug-in vehicles, hybrid cars, residential areas, schools and offices are all looking at using batteries, so
       we anticipate the battery market will expand in the future,” the statement from the companies read.

       Mitsui has previously launched a semi-commercial lithium-ion battery, and has produced 36 tonnes
       annually since then. It also acquired a Swiss company called LiFePO4+Licensing AG, which has a
       number of patents for lithium metal phosphate technology earlier in the year.

       Toda has done extensive research on batteries and their components using lithium, manganese and
       cobalt to maximise efficiency and storage capacity.

       “We expect that our experiences will create a company that has true synergy,” the company statement
       read.




  Manganese Matters n° 20 (Issued December 19, 2011)                                                                                                                             26
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