“We have reduced our production for December and January by approximately 50%. If this market situation continues we will continue to produce at this level,” John Joseph Scholtz, a spokesman for UMK’s exclusive sales agent Kalahari Trading told Metal Bulletin.
“We are not willing to destroy value and export material at a loss,” Scholtz added.
The production cut will bring the miner’s exports to about 80,000-120,000 tpm manganese ore.
Globally, manganese ore prices have fallen by as much as 53% since the start of 2015, largely due to very weak demand from China.
Metal Bulletin’s 37% manganese ore index fell to $1.47 per dmtu
on Friday November 20.
Fellow miner South32 has already confirmed that its manganese mines in South African will remain closed until January
, following a fatality on November 2 that led to production being suspended.
Metal Bulletin reported in mid-November
that large production cuts were being rumoured for the coming weeks.