Mr. Larry Reaugh, President and Chief Executive Officer of American Manganese Inc. (“American Manganese” or the “Company”), (TSX.V: AMY; OTC US: AMYZF), is pleased to announce that CPM Group has been commissioned to develop an electrolytic manganese market study for the Company’s Artillery Peak Manganese Project located in Mojave County, Arizona.
“The market study represents a major component of the previously announced preliminary feasibility study that is currently underway and is scheduled for completion this fall;” says Mr. Reaugh.
About CPM Group (www.cpmgroup.com)
CPM Group is the world’s premier commodities research and consulting company. The company is heavily focused on precious, industrial, and specialty metals, in addition to undertaking research and analysis across all commodities markets. In the ferroalloy industry CPM Group has developed a top-rated expertise in molybdenum, vanadium, and chromium, as well as other minor metals. CPM Group provides a suite of research and consulting services related to the financial management of commodities exposure, including fundamental market research and analysis, consulting and advisory services, commodities management and asset management services, and investment banking advisory. Founded in 1986, CPM Group has extensive experience in commodities research, trading, banking, and financing. CPM Group is known for its research and analysis of the metals markets, its overall economic analysis of commodities markets, and its expertise in financial engineering, using derivatives to structure optimized positions for commercial hedgers and institutional and high net worth individual investors.”
China controls electrolytic manganese production (EMM) supplying and producing 97.44% of the world’s needs (2.6 billion pounds per year).
There is no substitute for manganese in steel (total manganese market greater than 30 billion pounds per year, fourth largest traded metal).
Manganese is the most critical metal at risk to supply and restriction in the United States as there is no US production. EMM’s greatest uses are the upgrading of specialty steel (47%), and the manufacture of aluminum alloys (32%) and electronics (14%).
China has a 20% export duty on EMM and the US has a 14% import duty; (US Price $1.81/lb) the current world price for Electrolytic Manganese Metal is about $1.52/lb. Manganese resources are declining in China especially carbonate ores for production of EMM, forcing Chinese companies to seek production offshore.
The overall manganese market grew at 8% per year to 30 billion pounds up to 2008. EMM market grew at 26% per year from 2003 – 2008 to 2.6 billion pounds per year.
About American Manganese Inc:
American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming the lowest cost producer of electrolytic manganese from its Arizona Manganese Project.
On behalf of Management
AMERICAN MANGANESE INC.
Larry W. Reaugh
President and Chief Executive Officer