South African resource company, Assmang, in which Sumitomo Corporation has 17% indirect share, plans to increase iron ore production by 10% to around 16.5 million tonnes in the year ending June 2013 from previous year. The firm eyes 20 million tonnes of production in years depending on rail and infrastructure availability. The world top 3 manganese ore producer increases the ore production by 14% to 4 million tonnes in mid-term from the output in the year ending June 2012 and targets world top of 6 million tonnes in future. The firm optimizes ferroalloy production to meet limited power availability while firm studies potential ferroalloy plant in other country than South Africa. The firm eyes the first offshore operation seeking growth by following demand growth.
Assmang’ chairman Desmond Sacco visited Japan with the sales company of Ore & Metal Company’s managing director Alastair Stalker and the deputy managing director Patrick Sacco for cerebration of 50th anniversary of first iron ore shipment to Japan. They met with a reporter of Japan Metal Bulletin in Tokyo on Thursday. The chairman Sacco emphasized the firm values long term relationship with Japanese buyers for more than 50 years on manganese ore supply. The firm plans to produce 12-13 million tonnes of export grade iron ore at Khumani mine, which started operation in 2007, in the year ending June 2012. With additional export rail transport volume, the firm increases the production to 14 million tonnes in the year ending June 2013. The firm increases iron ore production for domestic market from 2 million tonnes to 2.5 million tonnes at Beeshoek mine during the period. Local public rail company expands the annual transport capacity toward Saldanha port to 60 million tonnes and studies additional expansion to 80 million tonnes. Based on the 80 million tonnes of rail capacity, Assmang tries to expand the Khumani mine production to 18 million tonnes in years. The firm eyes additional expansion through new mining area development for Beeshoek mine and optimization of Khumani mine. The firm launched manganese ore processing facility with annual 6 million tonnes of processing capacity last year. The firm plans to produce 3.5 million tonnes of the ore production in the year ending June 2012 including 2.6 million tonnes for export. The firm transports annual 600,000-700,000 tonnes of manganese ore through truck transport to cover limited rail availability but the firm cannot increase the high cost truck transport. With the limited rail capacity, the firm couldn’t increase the ore production to 4 million tonnes level soon but the firm studies for potential 6 million tonnes of production. The firm operates ferroalloy making 10 electric furnaces at Cato Ridge plant and Machadodorp plant. The firm converted a furnace for ferrochrome to make high carbon ferromanganese last year due to higher electricity cost and lower demand for stainless. South African power situation gets normal toward 2013 through large scale new power plant. However, ferroalloy makers would have to wait at least 4 years to secure additional power for expansion. The electricity cost also impacts on their operations when the cost doubled in past 3 years and will increase by additional 16.9% in April.