South Manganese to Launch Manganese Lump Production at Daxin Plant in Guangxi

South Manganese

South Manganese, a leading Chinese producer of manganese products, has announced plans to construct a new manganese lump project at its Daxin plant in Chongzuo city, located in Guangxi province, southern China. The facility is set to produce 300,000 tonnes per year (t/yr) of manganese lump with a minimum purity of 95%. However, specific details regarding the launch and completion dates of the project were not disclosed.

South Manganese Expands Production into Deep-Processed Products

The new project represents a strategic move by South Manganese to expand its product range, specifically into deep-processed manganese products. According to the company’s chairperson Zhan Haiqing, the move will help the firm diversify its product offerings and strengthen its position in the manganese market. Manganese lump is a preferred product due to its ability to withstand prolonged storage without oxidizing, even in regions with high moisture levels, such as southern China. This advantage sets it apart from manganese flake, which can be more vulnerable to oxidation during storage.

South Manganese, formerly known as Citic Dameng, already operates four smelting plants in Chongzuo, with a combined manganese flake production capacity of 230,000 t/yr. In 2023, the company produced 157,300 tonnes of manganese flake and 14,300 tonnes of manganese briquette, showcasing its established role in the global manganese market.

Manganese Lump Production: A Growing Demand for High-Quality Manganese

Manganese is a critical material in the production of steel and batteries, which are key sectors driving demand for the metal. The recent price increases for manganese alloys have led producers to raise their offers for manganese flake, with prices for 99.7% grade manganese flake assessed between 12,300-12,500 yuan/tonne ($1,670-$1,717/tonne) as of December 16, 2024. This increase follows a rise in the prices of manganese alloys, highlighting the ongoing upward trend in manganese prices.

South Manganese's new project aligns with the broader industry movement towards higher-quality and more diversified manganese products. The manganese industry alliance meeting held in December 2024 is expected to provide further direction on price trends, with market participants keen to understand future price dynamics and the impact of new production initiatives like South Manganese’s Daxin project.

A Key Player in China's Manganese Sector

As one of China’s foremost manganese producers, South Manganese’s expansion into the manganese lump market will likely reinforce its market position both domestically and internationally. The company’s diversification into deep-processed products is an important step to meeting the evolving needs of the steel and battery industries, sectors that depend on high-quality, stable supplies of manganese.