Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc. (“American Manganese” or the “Company”), (TSX.V: AMY; OTC US: AMYZF; FSE: 2AM), provides short to medium term corporate activity for the Company and advancing its 100% owned Artillery Peak Manganese Project (Mohave County, Arizona).
Mr. Reaugh says, “In the immediate term, the NI 43-101 compliant Technical Report is being compiled and edited, and will be filed with the regulators on SEDAR by the end of June. The Company will address recommendations made in the Technical Report and pace the advancement of the project so as to maximize the value of its available cash”.
He goes on to say, “Over the medium term, the Company remains focused on becoming a low cost producer of electrolytic manganese metal (EMM). As part of our goal to becoming a strategic provider of manganese in North America, I am pleased to be speaking at the Strategic Minerals Conference in Washington, D.C.”
The one day Strategic Minerals Conference on June 6, 2012 will bring together representatives from the public, private and government sectors to discuss the growing demand for a strategic minerals reserve in North America. Larry W. Reaugh will represent the Company on an afternoon panel discussion regarding the private sector perspective and the path to production.
“We are pleased to be participating in a conference which stresses the need for more North American production of critical metals,” says Larry Reaugh. “Manganese has been considered a critical and strategic metal by the U.S. government for nearly 100 years, yet China controls 98% of the world’s supply and production and there is currently no operating manganese mines in North America. Our flagship property, Artillery Peak, was once used for the critical build-up of North American manganese reserves during the 1950’s, and today we are seeing a similar situation where global demand of manganese in the steel and cleantech industries is justifying the revival of a North American producer.”
“I am also pleased to report that the Company continues to cultivate strategic partnering relationships with EMM end users and emerging rechargeable battery end users. In these volatile financial markets, this is a long arduous process mutual due diligence. These groups recognize the strategic imperative of supply chain security; and the risks, lead time and money needed to build a new mine,” concludes Mr. Reaugh.
China controls electrolytic manganese production supplying and producing 98% of the world’s needs (3 billion pounds per year).
There is no substitute for manganese in steel (total manganese market greater than 33 billion pounds per year, fourth largest traded metal).
Manganese is a critical metal at risk for supply disruptions in the United States as there is no U.S. production. EMM’s greatest uses are the upgrading of specialty steel (74%), and the manufacture of aluminum alloys (12%), electronics (2%), and other applications (12%).
Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest-growing segment of the manganese market. Ford Motors predicts production of hybrid electric vehicles will account for 25% of its entire vehicle line-up by 2020, and Hyundai has committed a lifetime guarantee to their hybrid electric vehicles that use lithium-ion batteries with manganese spinel.
China has a 20% export duty on EMM and the U.S. has a 14% import duty.
The current world price for electrolytic manganese metal is about $1.46 per pound, while the U.S. price is about $1.66 per pound.
About American Manganese Inc.
American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming a producer of electrolytic manganese metal from its Arizona Manganese Project.
This release has been reviewed by John W. Fisher, P. Eng., a qualified person pursuant to National Instrument 43-101.
On behalf of Management
AMERICAN MANGANESE INC.
Larry W. Reaugh
President and Chief Executive Officer