AIS Resources signs manganese supply contract with Chinese company

13 August 2019 (Last Updated August 13th, 2019 13:58)

AIS Resources has signed a contract to supply 1,000t of manganese (Mn) every two weeks for one year to an agricultural product manufacturer in China.

AIS Resources has signed a contract to supply 1,000t of manganese (Mn) every two weeks for one year to an agricultural product manufacturer in China.

The contract, which is valued at current grade and benchmark price, has an estimated gross revenue of $274,400 every two weeks based on $274.40 per each tonne.

It highlights a sale price of Mn at $5.6 dry metric tonne unit (dmtu) for 49% Mn negotiated at a 1.75% discount to the Platts Manganese 44% CFR lump benchmark price.

AIS’ contract includes 200t of manganese ore which was already shipped to China on 66,380t container vessel, Tian Chang He.

Currently, more than 300t of high-grade manganese ore fines is loaded into 12 containers on a loose basis at Lima Port eliminating the cost of tuff bags.

The next shipment, which is anticipated this week, is expected to carry 500t of Mn.

The company noted that the voyage to Shanghai, China, is expected to take 35-37 days.

AIS Resources president and CEO Phillip Thomas said: “Our logistics team is working very efficiently and we have improved our loading process eliminating the cost of tuff bags.

“We have engaged Impala/Trafigura to provide our shipping and export services resulting in substantial savings. This contract will underpin our expansion plans.

“As soon as we reach 5,000t shipments we will revert to break-bulk Handymax shipping and realise further savings.”

AIS Resources explores and mines lithium and manganese projects. The company is currently engaged in the mining and trading of manganese ores in Peru, and the exploration and development of lithium brine projects in northern Argentina.