Marula Mining (AQSE: MARU; A2X: MAR) has reported another operational milestone at its Kilifi Manganese Processing Plant in Kenya, following further independent assay results confirming manganese grades well above the minimum specification required under its offtake agreement with Baosteel Resources South Africa.
Additional testing of processed manganese ore stockpiled at the Kilifi plant returned an average grade of approximately 39.5% manganese, comfortably exceeding the contractual minimum grade of 36.5% under the agency framework agreement with Baosteel, a subsidiary of China Baowu Steel Group, the world’s largest steel producer.
The latest results build on earlier assay data released this month, which had already demonstrated manganese grades materially above the required specification.
The higher grades could have a direct financial benefit for Marula, as manganese is sold using the Dry Metric Tonne Unit (DMTU) pricing mechanism, where pricing increases with metal content. Management believes the stronger-than-expected assay results may therefore result in higher realised sales prices than originally budgeted.
With the assay programme now complete, the company is moving ahead with preparations for its first commercial shipments. Following meetings with Baosteel representatives and other stakeholders in Johannesburg earlier this month, Marula, its Kenyan subsidiary Muchai Mining Kenya and the appointed shipping agent are now finalising logistics for transporting the processed ore from the Kilifi plant to the Port of Mombasa for export.
The update represents another important step in transitioning the Kilifi operation from commissioning into commercial production, with the company now focused on executing its first export sales under the Baosteel agreement.
For investors, the consistently high manganese grades not only validate the performance of the processing plant but also strengthen the project’s revenue potential as Marula prepares to commence commercial exports.
