Key takeaways from FIMI's manganese/chrome ore, EMD, EMM and ferro alloys summit

The Federation of Indian Mineral Industries (FIMI) in collaboration with Manganese Ore India Limited (MOIL), organised a two-day summit in Kolkata on 18 and 19 December 2024.

A.K. Saxena, Vice President of FIMI and Chairman-cum-Managing Director of MOIL, shared his insights during the inaugural ceremony. He highlighted the role of the mining sector in India's growing steel production, even though its contribution to the GDP remains modest. Saxena emphasised the importance of the ferro alloys sector, highlighting that around 50% is exported globally. He also stressed on the need to monitor CO2 emissions and prioritise safer mining practices.

Regarding MOIL's electrolytic manganese metal (EMM) and electrolytic manganese dioxide (EMD) business, which is a new area with limited technological exposure, he expressed optimism about the potential for significant growth in the future.

Other esteemed speakers shared their opinions on manganese ore, manganese alloys, chrome ore and ferro chrome, with a focus on India's role in increasing output.

MOIL expanding operations to meet growing demand

Natasha Jaiswal from MOIL shared her insights on the present and future scenario of manganese ore and alloys market. India's increasing production of crude steel has, in turn, increased the demand for manganese ore with MOIL having a share of around 53% of India's total production in April-October FY'24. MOIL is looking to expand its operations in other states along with aiming to increase production by 67% in FY'30 against FY'25.

MOIL's November 2024 production of 1.63 lakh tonne was the highest on record. While capacity currently stands at 3.42 million tonnes (mnt), production is expected to grow to 3.5 mnt by 2030 from a projected level of 2.1 mnt in FY'25. One tonne of steel production requires 7 kg of manganese alloys and 95% of domestic manganese production is used up for metallurgical purposes.

In India, the small and fragmented nature of mining leases poses a major hurdle in consolidation and strengthening of the manganese industry. Around 122 mines cumulatively account for just 0.5 mnt of annual production. Limited exploration, small lease holdings and interminable environmental delays are key challenges for producers.

Manganese-powered batteries, EVs, renewable energy storage

D.V.V. Giri from MOIL discussed manganese's vital role in batteries and energy materials. Key applications include producing EMD, EMM, and manganese sulphate (MnSo4) for lithium-ion technology. Notably, there are no manganese sulphate producers in India today.

Manganese's affordability and efficiency make it preferable over cobalt and nickel. Its demand is rising in EVs, renewable energy storage, and grid systems, with high-purity manganese poised for significant growth. This is against the backdrop of a projected increase in lithium ion battery demand from the current level of 1,307 GWh globally to 3,100 GWh by 2030.

Extending refractory life of HC ferro chrome furnaces

The tech-based presentations at the summit focussed on solutions required by the industry to enhance efficiency and profitability. Industry veteran and consultant Sambasiva Rao's paper outlined strategies to extend the life of refractory lining in high-carbon ferro chrome furnaces. Key points included optimising slag chemistry, using bauxite as a lining saver, ensuring strong briquettes, and improving charge permeability. These measures aim to exceed 15 years of refractory life, reducing costs in competitive markets.

Adapting to changing customer preferences

Siddharth Mishra. Head, Marketing & Business Development, FAMD, Tata Steel discussed shifting customer preferences in the chrome industry, driven by growing stainless steel demand globally (CAGR 3.4% from CY'23-CY'29), green production, and geopolitical factors. Key strategies include supply chain optimization, digital tools, sustainability, and transparent pricing.

He highlighted that lower stainless steel scrap generation on the global level and higher buying power of European mills poses risk of scrap supply shortage to other geographies. India has already started witnessing similar problems in H1 of 2024 (15% drop in H1CY'24). Both India and Europe now lining up for Indonesian NPI as an alternate to stainless scrap for nickel. This is also expected to stimulate ferro chrome consumption.

Demand for products such as LC ferro chrome along with HC ferro chrome with low titanium, low silicon, and low cobalt is increasing in India with the production of specialty alloy/special grade stainless steels. LC ferro chrome exports from India have grown by ~9 times from 2021 to 2024, he said.

China effect on global ferro chrome business

China, the largest stainless steel producer and ferro chrome consumer, dominates global demand, accounting for over 60% of ferro chrome consumption. However, slowing GDP growth, reduced industrial production, and weaker construction activity have pressured ferro chrome prices and margins. Environmental reforms and sustainability goals add another layer of complexity.

Despite these challenges, China's pivotal role ensures its influence, with potential demand recovery anticipated as economic adjustments and industrial developments progress, observed Debraj Mukherjee of Tata Steel.

Green transformation & impact of CBAM

Steelmakers are increasingly asking for greener ferro alloys to ensure carbon emission reduction in the entire supply chain. Outokumpu and Tata Steel have already released an Environmental Product Declaration (EPD) for their ferro chrome.

The EU's Carbon Border Adjustment Mechanism (CBAM) poses significant challenges for India's steel and ferro alloys sectors, particularly due to high carbon intensity and reliance on EU exports. With a potential carbon price of $106/t, Indian exports face up to 25% additional costs, undermining competitiveness.

Mid-sized enterprises and MSMEs are especially vulnerable to strict reporting and emission reduction mandates. While some seek export diversification, alternative markets offer limited demand. Transitioning to low-carbon production, such as the DRI-EAF method, is hampered by India's dependence on coal-based power, requiring long-term reforms for global decarbonisation alignment, a presentation by BigMint technologies Pvt. Ltd. highlighted.