It is reported that Australian manganese mining operations have been ramping up production to benefit from the steadily increasing demand for steel since the bottom of the global economic downturn. Prices for manganese have been rising, helping mining company’s balance sheets, and expanding operations.

This is the case for Consolidated Minerals' Woodie Woodie operation in Australia. The operation is run by Ukrainian billionaire Gennadiy Bogolyubov’s Pilbara Manganese, a subsidiary of Consolidated Minerals.

Mr Jason Scott for Bloomberg said that "Bogolyubov wants to raise annual manganese production by 25% to meet rising global demand from steelmakers." He added that the mine produces 10% of the world's high grade manganese with last year’s production at 961,000 tonnes. For 2010, the mine is on a course to produce 1.2 million tonnes.

The company has also been in talks with OM Holdings Limited about a possible merger of manganese operations that would create the world’s second largest manganese producer, behind only BHP Billiton Ltd. OM holding’s main resource, the Bootu Creek mine, is on track to produce 850,000 tonnes of manganese. Consolidated Minerals already owns an 11.5% share in OM Holdings through its Stratford Sun Limited subsidiary. However promising the merger looks, CEO Mr Glenn Baldwin has stated that there is no timetable yet but talks are ongoing.

In other merger news, Jupiter Mines shareholders have voted to approve the deal to combine with Pallinghurst Resources Limited. Jupiter’s main asset is the Tshipi Kalahari manganese project in South Africa, which has a reserve of 163 million tons of the metal.

Mr Alex Wright of The Royal Gazette said that "The completion of the transaction will enable renewed focus on the mine development at Tshipi, as well as further exploration at Jupiter’s Mount Ida iron ore project in the Yilgarn and the Oakover manganese tenements in the Pilbara."

Another manganese operation in the region is the Nicholas Downs owned by Mineral Resources Limited. The mine is targeted to produce 40,000 tonnes per month of 40% ferruginous manganese. The operation is getting help from Hancock Prospecting has taken a 3% shareholding in ASX listed Mineral Resources, by exercising five million options, at a cost of around AUD 30.2 million.

(Sourced from www.resourceinvestingnews.com)