Our raw materials continue to be exploited.
China imported approximately 2.18 million tons of manganese ore in June, a rise of around 39.3% from about 1.57 million tons in May 2020, according to the latest available Chinese customs data, reported recently in MetalBulletin.
June’s volume is also 7.3% higher than the 2.03 million tons imported in the same month of 2019, the data showed.
Among the total volume imported in June 2020, around 724 794 tonnes (33.2%) came from South Africa, one of the largest producers of manganese ore in the world. This compares with the 582 766 tons that the African nation supplied to China in May 2020.
The significant increase in the manganese ore imports in June was attributed to the recovery in ore shipments from South Africa following the easing of nationwide lockdown measures that were previously implemented in late March 2020 as part COVID-19 restrictions.
South Africa remains China’s top manganese ore supplier followed by Australia.
If you compare these figures to those in 2019 China imported 411 912 tons of manganese ore from South Africa in October, followed by 364 587 tons from Australia, customs data showed.
China imported 1.33 million tons of manganese ore in October, down from 1.36 million tons in September 2019.
Essential mineral sources
South African author, translator, and a graduate of Stellenbosch University Elise Lombaard recently wrote in the publication NewEurope that China has bought out our government, our operational mines for uranium, chrome, aluminium, gold, and other essential mineral resources. Outside Messina near the Zimbabwean border with South Africa a Chinese town is being built for workers for a mine, chrome and steelmaking factory, a power plant using coal and several industries. The mines in Namibia and South Africa pay no taxes because China does not buy uranium at the international price but at a daily price that will ensure that the mines are bankrupt and working at a loss.
“China is attempting to procure Canadian and Australian uranium mines so that it will have sole recourse to uranium on earth,” she said.
To read the full article – China, the coloniser of Southern Africa – visit:
https://www.neweurope.eu/article/china-as-colonist-of-southern-africa/
China takes control of South Africa’s foundry chrome sand – where to from here?
It is also said that a Chinese Government consortium bought the controlling shares in Samancor.
“This acquisition, that was already agreed and paid by the end of 2019, has not been formally announced out of fear for the section 11 of the Competition Commission requirements.”
“This deal will have a huge impact on the chrome market going forward as Samancor is still the biggest holder of reserves in South Africa. Many of these are not currently being mined or explored.”
“With that being said, we all are acutely aware that the Chinese only support the Chinese and the biggest question on the global foundries’ lips at GIFA 2019 was: What is going to happen if metallurgical grade prices continue to fall and if Samancor (China) opens up all the reserves and ships material to China? We have seen the trend of falling metallurgical grade prices continuing until today.”
“None of the other mines will be able to sustain their current production levels if their 90% metallurgical grade pricing is affected by the low prices demanded by the Chinese and given their dominance in the market. As you know most mines only produce 10% maximum foundry sand and it is very dependent on the metallurgical grade prices to keep the underground operations going.”
“With falling metallurgical grade prices, many of the older underground operations with older technologies will not be sustainable and with the growing demand for UG2 and Lumpy, the majority of the underground mines will not be viable.”
“This will affect the foundries globally as China’s main concern is not supplying foundries worldwide but will firstly look after their own stainless steel requirement as this was the strategic reason for buying Samancor.”
“As expected, many of the South African ferrochrome smelters and underground mines are closing. The lack of electricity as well as the general direction in which China is steering this market is causing many smaller companies to also go into business rescue, like Azure, Hernic, Mogale Alloys, Sinosteel and many others.”
“This will have a major impact on the foundries too as most of the underground mines are now no longer sustainable for the majority of the chrome producers. Only the low cost UG 2 (by-product from PGM Mines) material will be produced as it is cost effective and in demand by China.”
There is also interesting reading about: The great Samancor ‘heist’ reported by Daily Maverick’s amaBhungane Dewald van Rensburg at https://www.dailymaverick.co.za/article/2019-10-02-the-great-samancor-heist/
