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Tuesday, 10/04/2011 4:38:47 PM

Tuesday, October 04, 2011 4:38:47 PM

Post# of 4675
J. Peter Zhang: U.S. Manganese Supply Is a Strategic Necessity

TCMR: What is the size of the worldwide manganese resources at this point? Are they somewhat defined? How quickly are they being depleted?

PZ: The U.S. Geological Survey’s study of manganese reserves outlined a limited quantity of high-quality ore with total reserve of 540 million tons globally. Australia and Africa offer some of the highest grades of manganese. North America, unfortunately, just isn’t home to a lot of high-grade manganese deposits. That is why the method for extracting metals from the ore could be the game changer for companies vying to fulfill domestic demand. The better the extraction technology, the more likely the company is to be a frontrunner.

For example, American Manganese Inc. (AMY:TSX.V; AMYZ:OTCPK; 2AM:Fkft) has a large resource in Arizona with good infrastructure. The grade of the deposit is not as high as those in South Africa, but it is one of the largest manganese deposits in the United States. The company has been actively working on a new hydrometallurgical process to extract lower-grade manganese into the high-purity metal. If that proves to be a reliable solution, then that will change the way manganese is produced on this continent. The cost of producing EMM using this innovative technology is much lower and energy-efficient than the method Chinese producers use. That could change China’s dominance over global EMM supply.

TCMR: Will that process be applicable to a variety of deposits? Or is it somewhat unique to American Manganese?

PZ: My understanding is the successful pilot testing done is designed to leverage the deposits in American Manganese Inc.’s Artillery Peak project. In general, the process is to resolve the lower-grade ore issue and to achieve a less energy-intensive purification process, simultaneously reducing environmental damage. Using this new technology could potentially make American Manganese a major player in the EMM world.

Here is the link:
http://jutiagroup.com/20111004-j-peter-zhang-u-s-manganese-supply-is-a-strategic-necessity/