Africa-focused mining and development company Marula Mining’s subsidiary Muchai Mining Kenya has entered a contract with Baosteel Resources South Africa for the purchase and sale of manganese ore from the Kilifi manganese processing plant in Kenya.
Baosteel Resources is a wholly owned subsidiary of state-owned China Baowu Steel Group, the world’s largest steel producer.
Under the contract, Baosteel Resources will exclusively sell the manganese ore produced at the Kilifi plant as an agent.
Muchai Mining will manage mining, loading and transportation to the designated handover destination, while Baosteel Resources will oversee export and sales logistics.
The contract, which commenced on 1 March 2025, outlines a five-year term with an initial delivery of at least 5,000 tonnes (t) of manganese ore by 30 April 2025.
Subsequent monthly deliveries will scale up from 10,000t to 20,000 wet tonnes, with each delivery forming a separate sale and purchase contract.
The pricing for the manganese ore will be based on China Ferroalloy Online index rates, including provisional and final settlement mechanisms that account for product quality, moisture, grade adjustments and market-based revisions.
A performance bond mechanism will ensure secure transactions and accommodate price fluctuations.
A provisional payment of 90% of each monthly shipment will be made to Muchai Mining upon delivery, with the balance paid after final quality and quantity certifications.
Marula Mining CEO Jason Brewer said:“This is a landmark agreement for Marula and the Kilifi Manganese Processing 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.
“We continue to work with key stakeholders here in Kenya and overseas to continue developing and growing Marula’s battery and critical metals portfolio to production and with sales targeting the international markets.
“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 Mining formalised a deal to acquire 80% of Agarwal Metals and Ores, owner of Kenya’s Kilifi manganese plant, in August 2024.
