By Larry W. Reaugh – President & CEO of American Manganese Inc.
Last week, cleantech analysis and consulting firm Kachan & Co. published a report analyzing American Manganese, our unique hydrometallurgical process and the opportunities for the future development of the electrolytic manganese market. This positive report validated that American Manganese has designed an extraction and refinement process of low grade manganese ore that not only could make our company the lowest cost producer of electrolytic manganese metal globally but also positions us as a mining company with minimal environmental impacts.
The Kachan report entitled “American Manganese’s Clean Extraction Process” was commissioned by American Manganese as an independent review of the company, our Artillery Peak property and our patent pending hydrometallurgical process. The report was in-depth in its analysis of the company and the manganese market; Kachan & Co. conducted 38 interviews for this report, including speaking with eight battery companies, a top 5 global consulting firm, an industrial strategy consulting firm and two cleantech-specific consulting firms. In addition, six investment bank/hedge fund mining analysts were interviewed, along with two cleantech fund managers, 10 mining firms or consultancies familiar with manganese, two mining companies in rare earths, two universities, two mining info databases, two independent battery research labs, the International Manganese Institute, the U.S. National Mining Association, Canadian Mining Association, World Steel Association and various government agencies.
The final analysis came to similar conclusions that we at the company have believed in since the purchase of the Artillery Peak property. Namely, that the manganese market is set for a boom in demand, through increased demand from the cleantech sector and decreased supply from Chinese manufacturers and that American Manganese has the ability to capitalize on this demand by being the sole North American producer of electrolytic manganese at a production cost dramatically lower than the global standard.
“American Manganese will likely have no difficulty finding a market for its production if its Artillery Peak mine in Arizona becomes active. But its cleaner and more efficient approach could potentially make it a lowest cost producer, a “win-win” situation for the firm.” –Kachan report
It is our hope to further validate the strengths of our Artillery Peak project when our pre-feasibility study is released. We will then be able to present a definitive production cost analysis, which we anticipate will position the company as the lowest cost producer of manganese worldwide. Current manganese production costs average around $1.20 per pound.
We are also pleased to announce that American Manganese will be attending this year’s Prospectors and Developers Association of Canada’s (PDAC) annual convention. Attendees at this year’s PDAC will be able to find American Manganese at booth #2600B. PDAC is the world’s largest mining convention and the largest convention in Canada. We are excited to be presenting American Manganese to the public at this convention and will be available to answer any questions about the company, our properties and the manganese market.