According to the Mining Journal, Gabon will ban the export of manganese ore to enhance its value chain. Last weekend, the Gabon government announced that it would prohibit the export of manganese ore starting from January 1, 2029. Gabon is the world's second-largest exporter of manganese ore after South Africa. Manganese is primarily used in steel production as an alloy material for stainless steel. A small amount is used in aluminum production and agriculture, and a tiny fraction is used in battery production, where it can serve as a cathode substitute for cobalt. Policy Shift In response to the news, manganese producer Eramet stated on Monday that it would cooperate with the government on the basis of consultation, joint construction, and mutual respect. "This move is one of the government's measures to consolidate the industrial base," Eramet said. Currently, the Gabon government has committed to implementing industrial and economic policy reforms. Eramet operates a large manganese mine in Moanda through its joint venture, Comilog. "Eramet will continue to monitor this policy shift and will seek further opportunities for cooperation to contribute to Gabon's long-term economic development while maintaining the continuous operation of its mining and metals business," Eramet said. "In particular, Eramet aims to preserve the strategic position of Comilog and Setrag as internationally significant manganese suppliers to the global steel industry, as well as the 10,460 jobs they provide in Gabon." Local Processing Gabon is the latest country to restrict the export of raw materials to support local processing. In 2020, Indonesia banned the export of nickel ore, leading to a surge in the country's smelting capacity. Subsequently, Zimbabwe began banning the export of lithium ore, although this failed to bring about a domestic processing industry. Gabon does not have a domestic steel industry to absorb the manganese ore that cannot be exported, but it can enhance its value chain by focusing on the production of ferromanganese alloys. Its intermediate product is high-manganese ferroalloy, with a small amount used in stainless steel production.

[SMM Analysis: Review of the Manganese Ore Market in 2024 and Outlook for 2025] I. Price: In 2024, the annual average price of 46% Australian lump at Tianjin Port was 47.66 yuan/mtu, up 16.02% YoY; the annual average price of 45.5% Gabonese lump at Tianjin Port was 45.72 yuan/mtu, up 17.77% YoY; and the annual average price of 37.5% South African semi-carbonate lump at Tianjin Port was 37.31 yuan/mtu, up 15.87% YoY. From the quarterly price review: 2024 Q1: Supply side, manganese ore port arrivals decreased MoM, but combined with previous manganese ore inventory, supply remained sufficient. Demand side, alloy plants mainly made just-in-time procurement, and port inventory destocking accelerated. Overall, despite just-in-time procurement by alloy plants, the supply surplus of manganese ore pressured price increases, leading to manganese ore prices fluctuating downward. 2024 Q2: Influenced by news of disruptions in mine shipments, overseas miners showed strong sentiment to stand firm on quotes. Supply side, manganese ore port arrivals continued to decline, and miners were reluctant to sell, resulting in tight market circulation. Demand side, alloy plants with manganese ore inventory showed strong willingness to resume production, and manganese alloy production increased, boosting procurement enthusiasm for manganese ore and significantly driving up spot prices.