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The metal that is surpassing the value of gold revealed! Manganese doubles in value in 2024 and leads the rise of metals, displacing gold, copper and other commodities

Written by Valdemar Medeiros
Published 18/06/2024 às 07:15
The metal that is surpassing the value of gold revealed! Manganese doubles in value in 2024 and leads the rise of metals, displacing gold, copper and other commodities
Photo: Manganese surpasses the value of gold and could become even more expensive

Manganese surpasses the value of gold and could become even more expensive: Find out why manganese is surpassing the value of gold and what is behind this sudden increase.

Manganese surpasses the value of gold and becomes a highlight in 2024: Manganese, essential in steel production, is surpassing the value of gold, copper and many other commodities in 2024. This abrupt increase in prices occurred after a cyclone interrupted exports of the second largest manganese mine in the world in March. Since the start of the year, prices for 44% manganese ore have nearly doubled, outpacing gains of 15% in copper, 12% in gold and almost 30% in tin. The information was released online Bloomberg.

Understand why the increase in the price of manganese took so long to be observed

A cyclone hit the operation of the Groote Eylandt Mining Co. (GEMCO), in northern Australia, damaging key port and transport infrastructure and disrupting high-grade exports. As a result, manganese has surpassed the value of gold and shipments are likely to remain suspended until 2025. South32 Ltd owns 60% of GEMCO and Anglo American Plc owns 40%.

Although it is relatively little known, manganese, a metal that is surpassing the value of gold, is important in steel production to strengthen the metal and reduce its brittleness. Manganese is also used in the manufacture of batteries and the production of aluminum alloys. 

The metal that is surpassing the value of gold revealed! Manganese doubles in value in 2024 and leads the rise of metals, displacing gold, copper and other commodities
Manganese exceeds the value of gold – Photo: Blog Jazida

The rise in manganese prices was slow to notice due to inventories elsewhere dampening prices, according to Zach Parsons, an analyst at Benchmark Mineral Intelligence. The supply shock impacted ore prices in April and took some time to be reflected in other products, meaning manganese surpasses the value of gold.

Manganese surpasses the value of gold and loses quality

Supply constraints and high prices for the metal that are surpassing the value of gold will continue until GEMCO returns to operations, according to Parsons. High prices have led manganese miners to sell lower quality material.

Element 25, a company listed on the Australian stock exchange, told shareholders this week that production of the metal, which is surpassing the value of gold, at these prices presents an opportunity to generate cash flow in the short term.

The manufacturer can sell lower-grade manganese stocks from its Butcherbird project, which is profitable at current prices. Parsons highlights that other companies can accelerate projects in the development phase.

Mining companies that were already planning to begin operations may advance their schedule to take advantage of this year's higher prices, however, this is a small number of producers that would be insufficient to fill the supply gap.

Understand how manganese is strategic for Brazil

Being the fourth most used metal in the world and the 12th most abundant on Earth, manganese exceeds the value of gold and is strategic for Brazil according to information from the Ministry of Mines and Energy (MME). With diverse applications, manganese is a ferrous metallic type mineral.

According to studies by American Geological Survey (USGS), the Brazilian reserve is 111 million tons and is mainly concentrated in the states of Minas Gerais, Mato Grosso do Sul and Pará. Smaller quantities are available in Amapá, Espírito Santo, Bahia and São Paulo.

With this quantity, the Brazil is the country with the third largest global ore reserves. In 2020, Brazil was the 5th country that exported the most manganese, with a total of 1.197 thousand tons. All this data shows the abundance of manganese in the national territory. 

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Valdemar Medeiros

Journalist in training, specialist in creating content with a focus on SEO actions. Writes about the Automotive Industry, Renewable Energy and Science and Technology

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