Kaboko gets Chinese thumbs up for manganese product

THE BOURSE WHISPERER:  Zambia-focused manganese exploration and mining play Kaboko Mining has told the Australian Securities Exchange it has received certified results of its second trial shipment of 300 tonnes of manganese that was shipped from the company’s Emmanuel project in February 2012 to Xiamen in China.

Kaboko claims the certified results have confirmed the high grade of its manganese product with the 300 tonne trial shipment of ore delivered testing to be in excess of 55 per cent manganese.

The testwork was conducted by a major Chinese trading company, which Kaboko described as being rated as one of China’s top 100 listed companies, with annual trade volume exceeding RMB 10 billion and one of the leading importers of ferrous and non‐ferrous metals into the country.

The testwork is the third independent analyses and testwork completed on the manganese ore produced and exported from the Emmanuel project.

With the testworkof the latest shipment supporting previous results, Kaboko said it has now received from the Chinese company concerned, a second indicative and non‐binding offer of an off‐take agreement, for the supply of a minimum 48 per cent manganese ore lump product.

It has been proposed this product will be priced at a premium to BHP Billiton’s reference price, which is expressed in US$ per dry metric ton unit manganese content, CIF China basis.

Kaboko is currently reviewing the terms and conditions of the indicative off‐take agreement and said it will update the market in the event a binding agreement is reached.