Manganese producer MOIL scouting for tech partners to up output

MOIL Ltd, India’s biggest manganese ore producer, is scouting for technology partners worldwide to secure superior underground mining techniques to achieve its long-term production target on time.

The company, which produced one million tonne per annum (mtpa) of manganese ore last year, plans to reach a capacity of 2.5 mtpa by 2020.

Manganese ore is used in steel making to provide the metal ductility and strength. The ore is first melted at high temperatures to form an alloy of iron and manganese. This alloy, also called as ferro manganese, is fed into steel plants during production of steel. Therefore, demand and pricing of steel has a direct bearing on the demand and pricing of manganese.

“Most of our mines are underground mines going below the depth of 300 metres. Though we have technology and expertise to go beyond that, we want to do it fast and that is why we are looking at companies which can help us achieve our 2.5 mtpa target in the stipulated time,” said K J Singh, chairman and managing director, MOIL.

For the current year the company is confident to reach a target of 1.1 mt of production, said Singh.

He said the company has floated global tender since most of the mining players having rich underground mining technology are located in countries such as South Africa, Australia, France and Germany.

The tender said the conventional method of mining used by the company has posed limitations to enhancement of production, especially in view of fast depleting ore reserves at higher levels. With the existing condition of its mines, MOIL is just capable of sustaining the current levels of production.

The consultants will hep in the preparation of ‘macro and micro plan’ to estimate and advice on the investments in various mining and other projects, capital assets and modernising mining methods.

Singh said the company may tie up with the foreign partner or can even work out a contract for enhancing the production.

“Although the quantity of manganese ore required for steel production is not very high as compared with coke and iron ore, but since it is an essential ingredient for steel manufacturing, its importance cannot be overlooked,” said an analyst with a domestic brokerage.

With the demand for steel expected to be firm for the next couple of years, demand for manganese will follow suit and India will have to increase its production accordingly, the analyst said.
MOIL, which currently meets 60-65% of the country’s manganese ore demand, has 10 mines located in Nagpur and Bhandara districts of Maharashtra and the Balaghat district of Madhya Pradesh covering an area of 1,798 hectares.

It was recently allotted an additional 814 hectares of manganese-bearing land in Maharashtra by the central government.

The company has around 60 mt  of manganese ore reserves, which are expected to go up after the initial geological surveys are done in the additional area.