Tag Archive for Manganese ore

South Africa South32 possible slowdown at Samancor Furnaces will hurt Transnet Rail traffic plans

A Bloomberg report on June 9th suggests that South32 Ltd., the mining company spun off from BHP Billiton may reduce the value of its 60 percent stake in a South African manganese venture. To read the entire article, go to http://bloom.bg/1JBmno1 I

t will delay restarting three of the 4 ferro-manganese furnaces in its Samancor venture with Anglo American. Reason for the cutback relates to the recent 20% global price decline.

South32 is reported as negotiating with Transnet SOC Ltd., the South African logistics operator to secure additional rail and port capacity for the export of manganese ore from Samancor’s Hotazel mines in the Northern Cape province.

The future rail movement volume depends on global ore prices and the rail and port negotiated rates per ton. If the global slowdown in resources from manganese to coal and iron ore continues into 2017 or beyond, the result will lower Transnet Rail’s achievement of their current 7-year strategic plan.  How might Transnet respond to these market forces?

CHANGING MARKETS and the need for a Rail Plan B  (hit the more key for added information)

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