Manganese alloys essential for steel making. Like all RM even Mn : a) depleting resources in most regions, b) ore controlled & concentrated to a few  leading to steeper increase in RM price than steel price  profit shifting to RM c) HG ore prices increasing faster than MG & LG Ore prices as more concentrated (geographic) spread of HG ore. Way out : Invest in technology for Mn alloys like steel industry has done for iron ore : viz beneficiation, agglomeration, pre-reduction and coke : viz washing, stamp charging PCI etc. Beneficiation, Agglomeration, Alloy making not using electricity – direct reduction using coal/natural gas. Use of lower grades of ferro alloys that can be made from LG Ores which are more easily available. Steel Production Global + India Going Up Manganese Alloy Demand Going Up High Grade Manganese Ore Restricted To Few Countries & High Consolidation Of High Grade Mn Ore Resource. Globally Steel Industry Has Tackled Poor Quality Of Principal Raw Materials Iron Ore – By Viz Beneficiation, Agglomeration, Pre-reduction. Coke - Washing, Stamp Charging, Pulverized Coal Injection Etc Indian Mn Ore Of Poor Quality, High Grade Ore Price Increase & Electricity Cost Increase + Shortage. Hence Need For Steel Industry To Invest In : Beneficiation Agglomeration Alternate Methods Of Production For Mn Alloys 

1. Manganese Ferro Alloys -
Perspectives for the Steelmaker
Prabhash Gokarn
Head Marketing & Business Development,
FAMD

2. Storyline Summary
Storyline
- Manganese alloys essential for steel making.
- Like all RM even Mn :
a) depleting resources in most regions,
b) ore controlled & concentrated to a few  leading to steeper
increase in RM price than steel price  profit shifting to RM
c) HG ore prices increasing faster than MG & LG Ore prices as more
concentrated (geographic) spread of HG ore.
- Way out :
- Invest in technology for Mn alloys like steel industry has done for
iron ore : viz beneficiation, agglomeration, pre-reduction and coke :
viz washing, stamp charging PCI etc.
- Beneficiation, Agglomeration, Alloy making not using electricity –
direct reduction using coal/natural gas.
- Use of lower grades of ferro alloys that can be made from LG Ores
which are more easily available.

3. Presentation Flow
• Steel Production Global + India Going Up
• Manganese Alloy Demand Going Up
• High Grade Manganese Ore Restricted To Few Countries &
High Consolidation Of High Grade Mn Ore Resource.
• Globally Steel Industry Has Tackled Poor Quality Of
Principal Raw Materials
– Iron Ore – By Viz Beneficiation, Agglomeration, Pre-reduction.
– Coke - Washing, Stamp Charging, Pulverized Coal Injection Etc
• Indian Mn Ore Of Poor Quality, High Grade Ore Price
Increase & Electricity Cost Increase + Shortage.
• Hence Need For Steel Industry To Invest In :
– Beneficiation
– Agglomeration
– Alternate Methods Of Production For Mn Alloys

4. Manganese Ferro Alloys -
Perspectives For The Steel Maker

5. Steel Production Global + India Going Up
Projected Global CS Growth (Mn MT)
1,952 2,040
1,788 1,868
1,622 1,711
1,121 1,171 1,224
973 1,026 1,073
649 684 715 747 781 816
CY11 CY12 CY13 CY14 CY15 CY16
Long Flats
Projected CS Growth in India (Mn MT)
97
89
82
68 73
64 52
44 48
36 39
34
38 41 45
30 32 34
FY12 E FY13 FY14 FY15 FY16 FY17
LP FP

6. Manganese : Driven by Steel
World over, Manganese is the 4th most used metal in terms of tonnage
after Iron, Aluminum and Copper. Total world’s production of Manganese
Ore reached almost 47.21 million tons in 2010.
• About 95% of the world’s production of Manganese Ore is used
directly or indirectly in steel making and other metallurgical usages.
• Manganese ore and Alloy Industry have historically derived demand
from steel Industry and hence is directly related to the volatility and
movement of Global steel Industry. World demand for Manganese ore
depends directly on the outlook of steel Industry.

7. Indian Steel Production Increase is Rapid

8. Resulting in a Proportional Rapid Increase in Manganese
Alloys Requirement Globally…
6000 Global FeMn Demand 6000 Global SiMn Demand
5260 5260
4995 4995
4747 268 4747 268
5000 4513 266 5000 4513 266
4193 4267 263 353 4193 4099 4267 263 353
4099 260 260
343 343
4000 232 241 333 512 4000 232 241 333 512
241 323 474 241 323 474
334 314 439 377 334 314 439 377
310 406 366 310 406 366
348 362 376 355 701 348 362 376 355 701
3000 345 3000 345 694
388 328 335 694 388 328 335
680 687 680 687
734 660 660 734 660 660
2000 2000
2664 2851 2664 2851
2175 2327 2490 2175 2327 2490
1000 1973 2033 1000 1973 2033
0 0
2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017
OTHERs SOUTH KOREA AMERICAS INDIA OTHERs SOUTH KOREA AMERICAS INDIA
JAPAN EUROPE CHINA JAPAN EUROPE CHINA
Global Manganese Alloy Demand is growing at > 6% yoy

9. ….. and in India
800 250
SiMn Demand – India kT 683 FeMn Demand – India kT 210
700 652
196
200 180
600 560
517 166
489 153
500 461 140
150
400
300 100
200
50
100
0 0
FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17
lndian Manganese Alloy Demand is growing at > 10% year on year

10. Most Manganese Alloys – made in China
14000 6000
SiMn Supply International kT FeMn Supply International kT 5219
11,531 4932
12000 4665
10,734 5000 460
400 4417
4188 460 292
451 4154 4016 460
10000 8,944 1100 290 329
8,655 8,685 460 287
8,365 1100 4000 425 460 329 338
1615 462 284 329 335
976 314 281 329
8000 1658 978 1481 301 332 672
1814 400 329 328 623
910 3000 365 325 576
843 410 534
6000 841 860 1323 349
1202 494
1074 416 449
976
2000
4000 7996
7335 2896 3128
2483 2682
4750 4814 5055 5409 1000 2189 2090 2299
2000
0 0
FY12 FY13 FY14 FY15 FY16 FY17 2011 2012 2013 2014 2015 2016 2017
Others South Africa Ukraine India China OTHERS JAPAN CIS EUROPE INDIA CHINA
China is the largest consumer as well as producer of Manganese Alloys
India is also a significant producer & consumer
Ukraine is the largest exporter of Manganese Alloys

11. India is a Significant Manganese Alloys Exporter
SiMn Supply from India kT FeMn Supply from India kT
1800 1615 800
1481 672
1600 700 622
1323 577
1400 1202 600 534
1074 683 494 210
1200 976 652 449 196
500 180
1000 560 166
517 400 153
800 489 140
461 300
600
932 200 426 462
400 763 829 341 368 397
585 685 309
200 515 100
0 0
FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17
Export Domestic Export Domestic
However, it is forecast that the proportion of Mn alloys needed to service the
domestic steel industry will increase rapidly, and Mn alloy exports out of India (as
a proportion of production) will fall.

12. Asia accounts for 65% of World Steel Production and 70% of
World Manganese Alloy Demand

13. Five Countries Account for 99% of Asia’s Mn
Consumption, with China dominating

14. China and India have dominated this increase….

15. Growth of Asian Mn alloy production has been fuelled
largely by imported Manganese Ore

16. Though, low grade Mn Ores are produced in many regions

17. HighORE CONCENTRATION
MN Grade Manganese Ore available in few regions only…
High Grade Mn Ore
High/Med Grade Mn Ore
Low/Med Grade Mn Ore

18. This is why Manganese Ore is highly traded (fourth after
crude oil,IS HIGHLY TRADED coal)….
MN ORE
iron ore and

19. Manganese Ore sea borne volumes have risen sharply, with
most manganese ore bound for
Asia…China, India, Korea, Japan

20. And this high grade Manganese Ore comes from very few
countries…. Highly consolidated supply base….
Manganese Ore Exports, in Mn MT
Others, 5.79
6 South
Africa, 6.27
Brazil, 0.844
Australia, 4.
Gabon, 2.52 8

21. Import of Manganese Ore in India has rapidly increased ….

22. And is likely to increase in future rapidly too ….
IFAPA 5 YEAR PLAN DATA

23. Key Conclusions …
• Asia is the key region for manganese demand, accounting for two thirds of global
consumption
• China is 70% of Asian consumption. Japan, India and South Korea also
significant
• Asia will continue to increase as a percentage of global demand, fuelled by need
for structural steels for construction and infrastructure in developing countries
• Asia overall is now consuming >90% of the Mn alloys it produces and is
exporting less
• The region’s Mn alloy production is largely non-integrated, and increasingly
dependent on imports of Mn ore from outside of Asia
AS HIGH GRADE MN ALLOYS ARE GETTING SCARCE, & IMPORT BASED
ALLOY PRODUCTION IS NOT ALWAYS SUSTAINANBLE THERE IS AN
URGENT NEED TO DEPEND ON THE ORE AVAILABLE IN INDIA – LOWER
GRADES OF MN ORE WITH LOWER Mn/Fe

24. Steel Makers have developed technology to counter similar
situation in iron ore and coal
TECHNOLOGIES ADOPTED BY STEEL MAKERS TO COUNTER INFERIOR RAW MATERIALS :
Inferior Coals : Coal beneficiation by washing
Use of semi coking coals by Stamp charging
Use of non coking coal by pulverized coal injection
Iron Ore : Iron Ore Beneficiation
Iron Ore fines used by sintering & pelletizing
Flux input through sinter
Energy Efficient Alternate Technologies :
Sponge Iron / HBI using coal & natural gas
Processes that use Inferior Raw Materials :
Use of iron ore fines & coke/non coking coal fines
in iron making by FINEX, ITKM3 etc.
Secondary Metallurgy :
Ladle/runner treatment of hot metal for dePhos, deSulphurization
RH, RH-OB, CAS-OB, MRP, VD/VAD, AOD etc. for Steel refining

25. Urgent Need for Similar Advances in Ferro Alloy Making
NEED FOR SIMILAR ADVANCES IN FERRO ALLOY MAKING
Inferior Mn Ores :
Mn Ore beneficiation (specially high Mn/Fe ores)
LAM Coke : Advances in use of alternate reductants :
- coal, char, lignite, anthracite, wood
Energy Efficient Alternate Technologies :
Advances in Non Electricity based processes for Ferro Alloy Production
- Direct Reduction using coal or gas (like HBI/sponge iron)
- Coal based BF like production of FeMn and Spigelsen
Stabilization of DC Arc technology and it adoption in India/China
Ferro Alloy Processing :
Post tap refining of ferro alloys – dePhos / deSulphurization / deCarburize
Advances in direct pig casting of molten ferro alloys eliminating resizing
and generation of fines etc.

27. Back Up
Summary of Technological Advances in Steel Making

28. Technology Developments(1) : Beneficiation,Agglomeration,Reduction

29. Technology Developments(2) : BF Iron Making Advances…

30. Technology Developments(3) : New Smelting Technologies

31. Technology Developments(4) : Steel Making, Secondary
Refining, Continuous Casting

32. Technology Developments (5) Non Coking Coal Use