The global manganese market is set to experience significant growth, driven by China’s reviving construction sector and supply disruptions following Tropical Cyclone Megan’s damage to South32’s GEMCO mine in Australia.
Modor Intelligence reports that the global manganese market is expected to reach US$29.83 billion by 2028, up from US$24.45 billion in 2021. This is a 2.8% compound annual growth rate (CAGR) from 2022 to 2028.
Other predictions from the Silico Manganese Report 2024 suggest that the green industry and renewable energy will propel the silico manganese market to $40 billion by 2028, owing primarily to a burgeoning automotive sector and infrastructure developments.
The resurgence in demand has re-ignited the mergers and acquisitions markets, with South Africa’s coal giant Exxaro reportedly poised to expand into the manganese sector. Exxaro, which has a cash reserve of R12 billion, is reportedly looking to diversify into the manganese and copper sectors, according to Bloomberg.
Mining’s Digital Transformation: AI-Driven Growth and Sustainability
The manganese mining sector has witnessed significant improvements in production and safety, driven by the adoption of artificial intelligence (AI) technologies. Advanced AI-driven analysis of geological data enables more accurate exploration and resource estimation, leading to informed decision-making, reduced operational costs and optimised supply chain management.
Manganese Market Boob: Asia-Pacific Region Leads the Charge
Approximately 90% of the manganese ore extracted worldwide is utilised in steel production. The Asia-Pacific region is projected to maintain its dominance in the market and is anticipated to experience the highest compound annual growth rate (CAGR) during the forecast period.
While China has been the largest consumer of manganese, mainly as feedstock for its steel sector, India is expected to see an increase in both manganese ore production and imports as the country moves towards implementing its 2040 Vision, earmarked to position India as a hub for AI and automation.
Further demand for manganese is also expected to escalate with the emergence of lithium-ion batteries powering electric vehicles.
Editor @ ESGFrontiers| @lloydnedohe_
