State-owned MOIL (formerly Manganese Ore India Ltd) is looking at possible overseas acquisitions - for manganese ore mines & other critical minerals, as part of its diversification strategy. It is also tapping into more States here such as Gujarat, Madhya Pradesh and Chhattisgarh.
The company is looking for expansion into geographies, including Africa – South Africa and Gabon, Australia and in LatAm nations like Brazil, for expansion of manganese ore extraction operations. The critical mineral strategy asset acquisition strategy is under-works too, Ajit Kumar Saxena, Chairman and Managing Director, MOIL Ltd, told businessline.
South Africa is said to have the largest manganese ore reserves globally, while Gabon has around 25 per cent of the world’s resources. Australia on the other hand is known to be a major exporter of manganese ore.
Incidentally, manganese ore is used in steel-making to regulate the manganese content in hot metal. Manganese is known to improve the strength, workability and wear resistance of steel.
“We are working with different state governments and also looking at overseas geographies for manganese ore mining. Critical minerals, other than manganese, is something that we will also be looking at,” Saxena said, while speaking on the sidelines of the 4th International Ferro Alloys conference.
India Expansion
The company will also be entering into JV tie-ups with Gujarat and Madhya Pradesh governments for manganese ore mining in these respective States. Exploration activities are being carried out in Chhattisgarh too.
According to him, in Gujarat, nearly 9.5 million tonnes of reserves of manganese ore have been established and the company is in advanced discussion for a JV with the state government and Gujarat Mineral Development Corporation Ltd (GMDC). Production can start 12–18 months post finalisation of the JV. “We can apply for the necessary approvals only after the JV has been formalised,” he said.
For Madhya Pradesh, resources have been established in the area allocated to MOIL, and it will begin work on forming a joint venture with the State government and the State mineral development corporation.
For Chhattisgarh, exploration work to determine resource availability begun in June.
Currently, MOIL has 10 mines, located across Maharashtra - Gumgaon, Kandri, Munsar, Beldongri, Dongri Buzurg and Chikia - and MP – Sitapa tore, Tirodi, Balaghat, and Ukwa. For FY24, the mini-ratna company reported an annual production of 17.56 lakh tonnes (mt), up 35 per cent y-o-y. It is targeting 21 lakh tonnes for FY25 and has earmarked a capex of ₹320 crore.
Incidentally, MOIL accounts for over 50 per cent of the manganese ore produced in the country.
In FY24, India’s production of manganese alloys (ferro and silico manganese) stood at 3.5 mt, out of which nearly half or 1.8 mt were exports. Out of chrome alloys production of 1.5 mt, shipments stood at 0.75 mt. Total ferro alloys production was 5.2 mt, with exports being 2.6 mt.