East Nusa Tenggara, The Republic of Manganese (1)

East Nusa Tenggara, The Republic of Manganese (1)

Manganese spreads across Africa, China, Georgia, and several Russian fraction countries. It is widely used for battery, steels, aluminium alloys, etc. BHP has several mines in Australia, There is Ghana Manganese Ltd in Ghana, Manganese Metal Company based in South Africa, and US has American Manganese Inc. Meanwhile, Indonesia has East Nusa Tenggara as the manganese main source.

Manganese might be not as popular as other minerals like nickel, gold, aluminium, coal, etc. However, this commodity is widely used by steel-makers and battery-makers. Its price hovers at US$3,775 per ton presently, jumped 16.2% year to date.

Wikipedia says manganese has no satisfactory substitute in its major applications, which are related to metallurgical alloy use. In minor applications, (e.g., manganese phosphating), zinc and sometimes vanadium are viable substitutes. In disposable battery manufacture, standard and alkaline cells using manganese will be generally replaced in the future with lithium battery technology.

FYI, US Trade Representative has estimated manganese production in 2006 on East Timor reached more than US$50 million. The number might be even bigger as there are so limited companies which have operations there.

What Indonesia has is the half of Timor, Flores, and Sumba Islands in East Nusa Tenggara. Ministry of Energy & Mineral Resources has identified most of the manganese producers in East Nusa Tenggara which have ‘clean & clear’ license lie in the regencies of Belu, Ende, Kupang, and Manggarai. Stories behind the companies are quite interesting.

Recently, PT SMR Utama has been listed on IDX. Through its subsidiary, PT Soe Makmur Resources, SMR controlled a 4,550ha area in South Timor Regency. This company expects 360,000 tons of production this year.

However, this company’s production had been dispute. In 2008, several local miners employed by the company were not paid equally following its license still in exploration (IUP Eksplorasi). Local advocacy agency has stated this company had violated the license given by the local government and urged the local authorities to detained the owner. One year later, Regent Daniel Banunaek issued exploitation license to the company (IUP Operasi Produksi).

SMR might be the only well-known major local manganese company. A number of manganese miners were owned by foreign investors, mostly from Australia.

Bligh Mining Pty Ltd recently acquired two tenements in Flores; PT Manggarai Manganese and PT Tamarindo Karya Manganese. The tenements cover 23,010ha in Manggarai Regency. Bligh secured operational license following the success of two initial rounds of seed capital raisings of $270,000 and $645,000 respectively, completed in November 2010.

Bligh Mining is now seeking to raise an additional $2 million for the purpose of funding the Company’s expanded mineral mining exploration strategy in Indonesia.

Should Bligh Mining be successful in part or all of its exploration and identification efforts, the company plans an Initial Public Offer (IPO) on the Australian Securities Exchange (ASX) before the end of the 2011 calendar year. The company said.

Western Manganese Ltd holds the rights of two manganese tenements in West Timor, CV Nusalontar Karyatama and CV Kasih Mulia, covering 4,258ha area near Atambua. Nusalontar’s progress so far has entered trenching program which will take the entire third quarter of 2011. Meanwhile, CV Mulia’s exploration has been in halt due to recent land access issues and shareholder issues within Kasih Mulia.

3D Resources Ltd has inked an MoU with an ‘Indonesian group that has Manganese, Iron Ore and Coal interests throughout Indonesia/West Timor’. Under the MoU, 3D shall have thr right to select any or all 6 current exploration and mining permits for joint venture and shall be entitled to earn a 65% interest by funding exploration and mining. 3D recently has completed a share placement and raise up to $463,000 to fund up its projects. Presently the company commences preliminary trenching and test pit activities.

Soil Sub Technologies Ltd also has been in close consultation with geologist in Tasinifu Manganese Project, West Timor. The company has continued to trial the Nutrimix technology and will investigate all potential.

Killara Resources Ltd has an MoU to acquire 80% stake in PT AT concession in Belu Regency. The company’s tenements covers 5,434ha area with initial rock chip results up to 53.7% Mn. The company has close relation with Tanri Abeng, the commissioner of PT Telkom Tbk.

Nickelore Ltd also has inked an MoU to acquire 90% stake on a 23,000ha concession in East Manggarai. Manganese samples of up to 52% have been collected from regional mapping within the tenement. However, the company on October 2010 has played down the acquisition and has terminated the agreement.

From other countries, Interchina Holdings Company Ltd had stated that its subsidiary, PT Satwa Lestari Permai acquires mining concession in Kupang Regency. The flagship asset of SLP is South Amfoang and Takari, located 130 km east of Kupang City Nusantara Timor Tenggena. The company claimed it has 8 million tons of resources and 18 million of reserves in 1,000ha of area. The company  has expected to commence production by mid 2011 and reached average annual production of not less than 750,000 tons starting from 2013.

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