We reported in August that China imported its highest quantity of manganese in July 2010. Recording an import growth of almost 11% YoY and month-on-month, China imported 1,056,000 tonnes of manganese ore in July against 953,483 tonnes in June this year. Out of that, 368,000 tonnes were imported from South Africa – the largest quantity imported in a month from South Africa. The remaining quantity was imported from Australia and Brazil, and to a small extent, from Myanmar.
On the new uses front, researchers from Brunei and Japan have jointly set up a plant that manufactures a semiconductor material from molybdenum. If the venture succeeds as a low cost alternative to the existing industry standards, moly-bdenum will cease to be solely dependent on the global steel market for its fate.
Since molybdenum is largely obtained worldwide as a byproduct of copper mining, focusing on the copper market can give investors a fair idea about where the molybdenum market is headed. With some of the largest mining majors investing in Peru’s mining and infrastructure sector, Peru is poised to offer strong competition to China in copper production over the next few years. The size of the investments is large enough to convince analysts that the global supply of molybdenum will be affected with the increased production of copper. The investments are also a sign of optimism that the world economy will recover soon enough to effect a strong growth in the demand for metals. Peru’s molybdenum production could increase by 38% over the next five years when Xstrata plc begins operations at its upcoming
Las Bambas copper facility by 2014.
Manufacturer and developer of rechargeable Polymer Lithium-Ion (PLI) batteries and electric vehicles, Advanced Battery Technologies, Inc (ABAT) developed an electric scooter with an aluminum-magnesium alloy in response to customer demands for lighter weight vehicles offering greater mileage. The company has just received a $350,000 order for the scooters from Italy’s Menzaghi Motors for delivery by the fourth quarter of 2010. The success of the product would not only benefit ABAT, but it would also indicate an increased demand for magnesium from yet another sector.
A South African mining charter drafted in 2004 is coming to the fore once again. The draft requires white mine operators to sell 26% of their assets to the black citizens of South Africa within 2014. The law was drafted in an effort to make up for some of the hardships suffered during apartheid. The charter also requires companies to fill 40% of their managerial positions with black South Africans, and to purchase 70% of services and 40% of capital goods from businesses owned by black South Africans. However, a majority of the mining companies are still owned by white South Africans and the change demanded has been practically non-existent so far. Director General Sandile Nogxina of the Department of Mineral Resources said, “South Africa will revoke the mining licenses of companies that fail to increase control by black people in line with local regulations.”
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