KUCHING: OM Holdings Ltd (OMH) is planning for a capital expenditure (capex) of A$120mil (RM373mil) to expand its manganese alloys production capacity for future growth.
The capacity expansion project planned for 2023 will add an additional 50% or 150,000 tonnes per annum of manganese alloys from currently 300,000 tonnes per annum.
The project’s capex funding will be from 2022,with manganese capacity expansion of two 33MVA-furnaces for improved efficiency, OMH said, outlining its future plans and growth at a virtual analyst briefing.
The planned expansion is expected to yield additional 150,000 tonnes per annum of siliconmanganese (SiMn).
OMH, which is dual listed on the Australian Securities Exchange (ASX) and Bursa Malaysia, said manganese smelting is expected to generate highest average returns over the full price cycle, and improve hedging ratio with ore.
As a vertically integrated manganese ore and ferroalloy company, OMH operates the lowest cost quartile smelter complex in Samalaju Industrial Park in Bintulu, the largest of its kind in Asia.
OMH has a 75%-stake in OM Materials (Sarawak) Sdn Bhd (OM Sarawak),with joint venture partner Cahya Mata Sarawak Bhd owning the remaining 25% equity interest.
The smelting plant is powered by hydro power from a 20-year power purchase agreement with Sarawak Energy Bhd.
OM Sarawak’s smelting plant has a design capacity to produce between 200,000 to 210,000 tonnes per annum of ferrosilicon (FeSi) and between 250,000 to 300,000...
Read Full Story: https://www.thestar.com.my/business/business-news/2021/10/25/om-holdings-eyes-capacity-expansion
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