Black market distorting manganese prices – Zambia
LOCAL processing plants have been urged to buy manganese from legitimate sources as illegal suppliers of the industrial metal are distorting the market price and robbing the treasury the much needed revenue.
Minister of Mines and Mineral Development Richard Musukwa said prices are low on the market due to the supply of manganese ore by illegal sources to buyers.
The price of manganese is between US$25 and US$45 per tonne due to the rampant illegal supply on the market.
“Prices on the local market are currently low owing partly to global demand and supply fundamentals in key markets such as China and mostly due to the supply of the ore by illegal sources to the buyers on the market. I want to implore the local processing plants that they should buy from registered sources instead of the illegal suppliers,” Mr Musukwa said.
He said buying from illegal sources goes against the conditions of grant of the mineral processing rights and robs the treasury of revenue.
Mr Musukwa said this when he toured Kabundi Resources Limited, which is a greenfield manganese mine owned by ZCCM-Investments Holdings (IH).
The minister also handed over nine houses to residents that were displaced during the development of the mine, a health centre and classroom block on behalf of ZCCMIH.
He also commended ZCCM-IH for creating jobs and providing infrastructure in the area.
The mine has so far created 80 jobs.
Mr Musukwa said the mining project has potential to increase Zambia’s manganese production, which is sought for on the international market owing to its quality.
He said the increase in electric cars on the global market has also increased demand for manganese, thus an opportunity for Zambia.
And Kabundi Resources Limited project manager Paul Mukuka said between May and October this year, the mine produced 62,835 tonnes of manganese as it looks to make
the industrial base contribute to the national treasury.
Mr Mukuka said the K19 million investment, which started producing the industrial metal in May last year, is ramping up production with the view to attain the 30,000 tonnes monthly target.
The mine has also developed a wash plant as part of value addition and so far produced 4,839 tonnes of manganese.
source: Zambia daily mail
