UMK Shifts Back to Rail Only Due to a Decline in Ore Demand

United Manganese of Kalahari (UMK) has announced its choice to exclusively use rail transport for manganese exports. Chief Executive Malcolm Curror mentioned that the company is responding to softer market conditions and the current dynamics of supply and demand.

Curror has reported that the manganese ore inventories at Chinese ports are at an all-time low. Interestingly, prices for semi-carbonate ore are still declining despite these low stocks. As a result, the company has determined that China’s upstream ore market is adapting to a more streamlined supply chain, showing increased flexibility regarding lower stock levels at the ports. It is clear that ongoing weak steelmaking activity is limiting the potential for manganese ore prices to rise. The uncertainty created by ore export quotas and tariffs aimed at encouraging beneficiation, as mentioned by Honourable Minister Mantashe, is expected to affect South Africa’s manganese ore supply.

At present, UMK accounts for approximately 12.5% of South Africa’s manganese exports and is the country’s second largest manganese mine.

Early last year, UMK also imposed a temporary export limit to responsibly manage its resources during market fluctuations. “During the prior effort and this current one, there will be no disruption in the value chain,” Curror stated. He stressed that this strategic shift would not affect business continuity either.

“UMK consistently assesses global market trends, and as in the past, the company will maintain production and export flexibility to enhance overall sustainability,” Curror stated.

UMK extracts manganese from an open pit mine located in the Kalahari region, close to Hotazel in the Northern Cape manganese fields.