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This manganese miner is soaring

Jupiter manganese

Manganese miner Jupiter Mines’ stock jumped nearly 10 per cent on Monday and has climbed more than 50 per cent over the past month.

This comes as South32 revealed its subsidiary Groote Eylandt Mining Company (GEMCO) – one of the world’s largest manganese miners – won’t export product again until the March quarter of 2025 after its wharf was partially destroyed by Tropical Cyclone Megan.

Across two days on March 16 and 17, record rainfall of 681mm fell at Groote Eylandt – the largest island in the Gulf of Carpentaria. The island was also hit with the second strongest wind gusts in the last 20 years.

South32 said it is exploring alternative shipping options for Groote Eylandt to mitigate the impacts of the wharf outage.

The cessation of Groote Eylandt exports is expected to lead to a tightening of the manganese market, according to Foster Stockbroking.

“We expect a rush for alternative supplies following the GEMCO shortfall,” Foster Stockbroking said. “This is being reflected in rising price globally of both high-grade (44 per cent) and medium grade (36–37 per cent) manganese prices.

“Since the Groote Eylandt shutdown, prices have risen for supply coming from Gabon, India, and most importantly for Jupiter Mines, from South Africa.”

Foster Stockbroking gave Jupiter a spot valuation of $0.44 per share. The company was trading at $0.29 per share at close on Monday.

Jupiter is the largest manganese miner on the ASX, producing material from its 49.9 per cent share of the Tshipi manganese operation in South Africa.

The company recently released a scoping study detailing its aspirations to become a supplier to the electric vehicle (EV) market. It would do this by feeding manganese ore into a high purity manganese sulphate monohydrate (HPMSM) plant in North America.

Jupiter hopes to produce 50,000 tonnes per annum (tpa) of HPMSM across an initial three years. This would increase to 100,000tpa from 2030.

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