UMK responds to weak market conditions by switching to rail, limiting exports
Local miner United Manganese of Kalahari (UMK) has decided to switch from using road freight transportation to rail for the transport of manganese ore, as well as limit its exports to align with current supply and demand dynamics.
CE Malcolm Curror explains that stockpiles in major markets such as China are currently healthy, leading to a decline in demand from South Africa. While the price of manganese enjoyed a buoyant period in the middle of the year, it was short-lived and current market conditions do not support the need for multiple transportation methods.
In turn, the limitation on exports is aimed at ensuring responsible management of resources while navigating fluctuating market trends.
“UMK remains committed to optimising operational efficiency and minimising disruption of business continuity through the exclusive use of rail for manganese exports.
“The company will continue to monitor global market conditions and adjust its strategy as needed to maintain sustainable growth,” Curror says.
UMK produces manganese from an openpit mine in the Kalahari manganese field located in the Northern Cape, and is the fourth-largest manganese producer in South Africa.
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