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[Ferro-Alloys.com] Baosteel Resources South Africa and Muchai Mining Kenya, a subsidiary of Marula Mining, an Africa-focused mining and development firm, have signed an agreement for the acquisition and sale of manganese ore from the Kilifi manganese processing plant in Kenya. The largest steel manufacturer in the world, China Baowu Steel Group, is the sole owner of Baosteel Resources. The manganese ore produced at the Kilifi plant will be sold exclusively by Baosteel Resources as an agent under the terms of the contract. Baosteel Resources will be in charge of export and sales logistics, while Muchai Mining will handle mining, loading, and transportation to the specified handover location. A minimum of 5,000 tonnes (t) of manganese ore must be delivered by April 30, 2025, as part of the five-year contract that began on March 1, 2025. Monthly deliveries after that will increase in size from 10,000 to 20,000 wet tonnes, with each delivery creating a different sale and buy agreement.

Manganese ore prices will be determined by the China Ferroalloy Online index rates, which include both provisional and final settlement methods that take into consideration factors including moisture content, product quality, grade changes, and market-based revisions. A method for performance bonds will guarantee safe transactions and account for changes in price. 90% of each monthly shipment will be paid in advance to Muchai Mining upon delivery; the remaining amount will be paid following final quality and quantity certifications.

This is a historic agreement for Marula and the Kilifi Manganese Processing Plant, stated Jason Brewer, CEO of Marula Mining. As we want to build extensive and lasting global alliances, grow our mining and processing activities, and raise our profile with important industry players, it represents a critical turning point for the business. In order to continue developing and expanding Marula’s battery and critical metals portfolio for manufacturing and sales aimed at worldwide markets, we are still collaborating with important players both in Kenya and abroad. We are thrilled about the prospects this partnership with Baosteel Resource offers, and I think it will improve our standing in the manganese market as well as other important industries like copper and lithium. In August 2024, Marula Mining formally agreed to buy 80% of Agarwal Metals and Ores, the company that owns Kenya’s Kilifi manganese factory.

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• [Editor:tianyawei]