Meridian reports record Q3 output, sales; new offtake accord

11th October 2017 By: Henry Lazenby - Creamer Media Deputy Editor: North America

VANCOUVER (miningweekly.com) – Manganese miner Meridian Mining has reported new record production and sales at its flagship Espigão project, in Rondônia, Brazil.

London, UK-based Meridian achieved production of 18 488 t in the third quarter ended September 30, compared with 13 445 t in the comparable period a year earlier – a 38% increase in line with the forecast ramp-up of manganese operations as planned for 2017, the company advised on Tuesday.

The Rio Maderia plant achieved a record output in August of 7 091 t.

Sales in the third quarter were 8 056 t of manganese oxide, compared with 6 622 t a year earlier, which reflected an increase of 22%.

Meridian advised that it had confirmed orders for 2017 totalling 53 129 t, which will account for all planned output in 2017.

Including cost, insurance and freight delivered to Tianjin, China, pricing for 44% manganese was $6.54 a dry metric tonne as at September 30, according to Metal Bulletin, 13.5% higher since June. Given that Meridian's product is high grade, it attracts pricing at a premium to the benchmark.

Meridian also advised on Tuesday that it had signed an offtake contract for a minimum sale of 20 000 t and the option to increase to 30 000 t for 2018, from the same client it contracted with in June for delivery of 20 000 t in 2017. The company advised that the first shipment for 2017 was under way, with product being stockpiled at Porto Velho port, in Rondônia, for loading onto barges to be trans-shipped in bulk at Outeiro port, in Para state.