Eramet Seeks Chance of New Manganese Ore Mine Development

Mr. Patrick Buffet, CEO of Eramet, a major supplier of ferroalloy in France, showed a vision at a press conference in Tokyo on Wednesday that Eramet increases manganese ore production in Gabon firstly while eyes new mine development in South Africa and other areas. Mr. Felipe Becton, head of Eramet’s manganese business division, indicated Eramet have sought share acquisitions in new manganese projects in addition to Kalahari project in South Africa and the company will decide the next capex plan in 2012 for additional output expansion.

Mr. Buffet said Eramet’s current manganese ore output at 4 million tonnes per year is a pass point and suggested additional expansion. Mr. Buffet showed a plan to establish metal manganese and silicon manganese plants while to expand businesses in Gabon including Mabnie project to produce rare earth and niobium. The firm also pursues possibility of manganese mine development in Africa other than South Africa.

Mr. Buffet explained the firm has advanced test operation of wet smelting process at a small plant in France and has a plan to construct and start a demo plant in Mabnie in 2014. Mabnie plant is expected to enter commercial production of rare earth, niobium and tantalum in 2018-2020.

Mr. Buffet overviewed world stainless production is estimated to have decreased by about 3% for April-June from the current peak in January-March and forecasted to keep the same level for July-September. He said the production is expected to recover after September. Mr. Bertrand Madelin, head of Eramet’s nickel business division, indicated excess supply of nickel is not concerned for a middle-long term thanks to the strong demand growth though large nickel development projects are recently advanced.