PETALING JAYA: OM Holdings Ltd’s (OMH) ferroalloy smelter complex (pix) in Samalaju Industrial Park, Bintulu, Sarawak, has registered higher production volumes for ferrosilicon, manganese alloys and manganese sinter ore, which increased by 45%, 57% and 143% respectively in the third quarter ended Sept 30, 2021 (Q3’21) compared to the prior quarter.
The increase comes after the Sarawak plant resumed operations in early July following a suspension.
The plant produced 33,453 tonnes of ferrosilicon, 59,307 tonnes of manganese alloys and 34,542 tonnes of manganese sinter ore in Q3’21. It has an annual production capacity of 200,000 to 210,000 tonnes for ferrosilicon, 250,000 to 300,000 tonnes for manganese alloys and 250,000 tonnes for sinter ore.
Ferrosilicon sales volume decreased 21% and manganese alloys sales volume decreased 14% in Q3’21 to 23,894 tonnes and 43,856 tonnes respectively compared with the prior quarter due to the lower inventory of finished goods available for shipment following the suspension of the Sarawak plant from end May to June 2021 due to the Covid-19 pandemic.
OMH’s wholly owned Bootu Creek Manganese mine in Australia processed 230,566 tonnes in Q3’21 at an average grade of 27.98% manganese while the Ultra Fines Plant (UFP) produced 4,736 tonnes with an average grade of 27.91% manganese for Q3’21. For the quarter, a total of 143,847 tonnes of manganese product with an average grade of 27.96% manganese was shipped from the Port of Darwin.
“Based on current estimates, all mining operations at the Bootu Creek Manganese mine is anticipated to be concluded in the fourth quarter ending Dec 31, 2021. After the main processing plant ceases operations, the company will only enter into the standalone UFP operations after a complete commercial reassessment has been undertaken to justify the project’s financial sustainability,” OMH said in a statement today.
Meanwhile, ongoing challenges remain for the company’s Sarawak operations, with entry applications for new foreign employees being gradually approved by authorities on a case-by-case basis.
“Given the pace of approvals and long lead time to mobilise the new workforce due to additional Covid-19 protocols, it is expected that the impeded inflow of new workers will unlikely alleviate the temporary workforce shortage due to employee home leave rotations commencing in Q4’21. Production at OM Sarawak during and after Q4’21 will potentially decrease before gradually ramping back up to full production in 2022,” it said.
