Changes in the Steel and Ferro Alloy Markets and Their Effect on AustraliaÆs Manganese Industry

Australia has a large resource of manganese at BHP's Groote Eylandt mine which has been progressively developed over the last two decades. While much of the product is marketed internationally to the iron and steel industry, substantial quantities are processed in Australia at the Company's ferro alloy works in Tasmania. In addition, small but increasing quantities of ore are being consumed by the non-metallurgical industry. Fluctuating fortunes in the steel industry produce similar trends in the marketing of manganese. The increasing cost of freight and power together with strict environmental control is further affecting the market balance. Mine operators are expanding into the alloy making field. Reduction in usage in less developed countries is occurring.