Posted on 05 Mar 2025
UK-listed Marula Mining said Tuesday its subsidiary has signed an agreement with Baosteel Resources South Africa for the purchase and sale of manganese from its Kilifi manganese processing plant in Kenya.
The agency framework contract, for an initial period of five years, was signed between Marula’s wholly owned subsidiary Muchai Mining Kenya (MMK) and Baosteel, a unit of China state-owned China Baowu Steel Group.
Kallanish understands that Baosteel will act as an agent to exclusively sell manganese ore from the Kilifi plant. The contract, which started on 1 March, covers the supply of at least 5,000 tonnes of manganese ore, grading 35-40% manganese, required to be delivered by the end of next month. Monthly delivery increases to a minimum of 10,000 wet metric tonnes (wmt) from May 2025, 15,000 wmt in April 2026, and 20,000 wmt from May 2026.
While MMK will complete mining, loading processes and transportation to the designated handover destination, Baosteel will handle export and sales logistics on a China Ferroalloy Online Index (CIF) basis, Marula says.
Jason Brewer, ceo of Marula Mining, calls it a “landmark” agreement for the company and the Kilifi plant.
“It marks a significant milestone for the company as we look to establish broad and long-term international partnerships, expand our mining and processing operations and enhance our profile with key industry players,” the executive adds. “We are excited at the opportunities this relationship with Baosteel Resource provides and I believe it will strengthen our position in the manganese and other key sectors such as lithium and copper too.”
Marula holds an 80% interest in Kenyan mineral processing company, Agarwal Metals and Ores, which owns the Kilifi plant. The fully operational processing plant handles around 10,000 t/m of manganese ores.
The African-focused battery metals investment and exploration company also has interests in the Blesberg lithium and tantalum mine, Northern Cape lithium and tungsten project and the Kruisrivier cobalt mine in South Africa; the Larisoro manganese mine in Kenya; and the Kinusi copper mine, the Nyorinyori graphite project and the NyoriGreen graphite project in Tanzania.
Source:Kallanish
