Jupiter Mines saw the price of manganese ore jump 56 per cent in the June quarter.
This is due to the Groote Eylandt Mining Company (GEMCO) – one of the world’s largest manganese miners – revealing it won’t export again until the March quarter of 2025 after the mine’s wharf was partially destroyed by Tropical Cyclone Megan.
Mining of graded ore rose by 39 per cent due to changes in the mining sequence, while Jupiter increased production by 22 per cent as the company looked to capitalise on the improved manganese market conditions.
Manganese ore (37 per cent grade) prices rose from $US2.97 per dry metric tonne unit in the March quarter of this year to $US4.62 in the June quarter. Prices peaked at $US4.82 at the end of June but moderated to $US3.62 by the end of July.
The higher profitability in the June quarter resulted in a higher applicable royalty rate. This was a major driver in the increase in Jupiter production costs.
The report also highlighted market volatility, particularly for high-grade manganese ore, which saw significant fluctuations in spot prices.
High-grade manganese ore prices reached as high as $US8.97/dmtu CIF Tianjin in late July, up nearly $0.70 in the space of a month.
While higher on average in the June quarter, prices for 36.5 per cent grade manganese ore dropped from $US5.67/dmtu in June to $US4.50 in July, driven by rising exports from South Africa.
Amidst a forecast shortage of high-grade manganese ore supply, ex-China ferroalloy plants, who are typically more reliant on high-grade ore for manganese alloy production, sought alternative supply sources, which led to producers exporting less high-grade ore into China.
This impacted stock levels in China and drove up prices.
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