Togo launches state-owned manganese company
Togo has created a state-owned manganese mining company aimed at developing the mining value chain, boost job creation and improve the country’s economy by helping efficiently take advantage of mineral resources.
The firm dubbed ‘Société Togolaise de Manganèse (STM),’ will work on meeting the country’s aim to double the contribution of its mining sector to GDP by 2025. Togo’s mining industry was mostly focused on phosphates. However, things are gradually changing with the discovery of an important manganese reserve with a potential estimated at 8.5 million tons for about 15 years lifespan.
Manganese market
Manganese has been ranked as the fourth most used metal in the world. It is notably popular because of its ability to enhance the strength and ductility of steel. Its use for battery manufacturing is also growing because of its ability to notably stabilize cathodes in batteries used in electric vehicles and electronic devices.
The global manganese market is expected to grow by more than 4.19% between 2022 and 2027. In addition, more than 40% of the steel produced globally is used in the construction sector, which is expected to grow by an estimated $12.9 trillion by 2030, primarily in countries such as India, China, and the United States. Togo intends to take advantage of these robust prospects. It has already taken some steps in that regard.
On October 18, 2019, the Council of Ministers approved a decree granting its manganese exploitation rights to Société Générale des Mines (“SGM”), 85% owned by the British group Keras Resources. Under the initial agreement, SGM was to become a state company however, Keras did not receive approval required to secure its mining license.
