JOHANNESBURG (miningweekly.com) - The world’s largest integrated producer of manganese, Samancor, has permanently stopped production of energy intensive silica manganese at its Metalloys plant in Meyerton near Johannesburg.

The company, which is 60% owned by mining major BHP Billiton, stated that the reduced manganese alloy production capacity would be replaced by the end of the calendar year, following the completion of a new $100-million ferro manganese furnace.

Silica manganese produced by the five small open furnaces at Metalloys’ south plant accounted for 120 000 t of its total yearly manganese alloy production of 510 000 t.

The company noted that the new ferro manganese smelter, which would consume 40% less power than the facilities being decommissioned, would return the capacity to this level.

“Difficult market conditions are affecting the whole manganese industry. We are taking these steps to further improve Metalloys’ competitive position and reduce our energy consumption at a time when South Africa is very short on electrical power. Focusing on ferro manganese will make Metalloys more economically and environmentally sustainable, strengthening the business for the long run,” Samancor CEO Tom Schutte said.

He added that discussions with employees affected by these changes had started and that the company was seeking to relocate them to other BHP Billiton operations in South Africa.