Muchai Mining Kenya, Baosteel Resources ink manganese deal
Marula Mining, an Africa-focused mining and development company, has announced that its subsidiary, Muchai Mining Kenya, has entered into an agreement with Baosteel Resources South Africa for the sale of manganese ore from the Kilifi manganese processing facility in Kenya.
Baosteel Resources, a subsidiary of China Baowu Steel Group—the world’s largest steel producer—will act as the exclusive sales agent for the manganese ore produced at the Kilifi plant. Meanwhile, Muchai Mining will oversee the mining process, loading, and transportation of the ore to designated locations. Baosteel Resources will manage the export and sales logistics.
Long-term partnerships
The contract, effective from March 1, 2025, is set for an initial five-year term. The first delivery is expected to be at least 5,000 tonnes of manganese ore by April 30, 2025. Monthly shipments will gradually increase from 10,000 tonnes to 20,000 wet tonnes, with each shipment forming a separate sale and purchase agreement.
The pricing structure will follow China Ferroalloy Online index rates, incorporating provisional and final settlement mechanisms based on factors such as moisture content, grade adjustments, and market fluctuations. A performance bond will be implemented to ensure secure transactions and accommodate pricing variations.
Under the agreement, Muchai Mining will receive a provisional payment of 90% upon delivery of each monthly shipment, with the remaining balance settled after final quality and quantity assessments. Marula Mining’s CEO, Jason Brewer, emphasized that the agreement represents a significant milestone for the company, strengthening its position in the global mining sector.
He highlighted the company’s efforts to expand its operations and build long-term partnerships while targeting international markets. Additionally, Brewer expressed optimism about further opportunities in the manganese sector, as well as other key minerals like lithium and copper. Marula Mining took a major step in August 2024 by securing an 80% stake in Agarwal Metals and Ores, the owner of the Kilifi manganese processing plant.
