It is reported that near record low prices and a high Australian dollar are taking their toll on companies which mine manganese, a mineral used in steel production.

Despite record levels of production and shipping, OM Holdings, who own the Bootu Creek mine near Tennant Creek in the Northern Territory, are expecting a loss for 2011.

Mr Fanie Van Jaarseld MD of OM Holdings said that there's an oversupply of manganese to the market. He added that "Everybody never expected the manganese price to actually go down this far. This is the bottom of the price cycle. So although earnings before interest and tax is positive we'll make a loss of about 12 million for the group

(Sourced from www.abc.net.au)