OM Holdings’ Sarawak smelting plant records higher output in Q2

KUALA LUMPUR (July 27): OM Holdings Ltd's (OMH) ferroalloy smelting plant in Sarawak’s Samalaju Industrial Park produced higher volumes for ferrosilicon, manganese alloys and manganese sinter ore in the second quarter (Q2) of this year, compared with the first quarter.

The Singapore-headquartered company said it produced 35,004 tonnes of ferrosilicon, 60,767 tonnes of manganese alloys and 30,446 tonnes of manganese sinter ore, representing a quarter-on-quarter increase of 3.2%, 0.4% and 18.7% respectively.

"In terms of sales volume, the plant saw an increase of 23% sequentially for ferrosilicon to 37,779 tonnes in Q2 2022 due mainly to delayed shipments at the end of March 2022 being carried forward to the quarter under review.

"Sales volume for manganese alloys, however, declined 9.5% to 52,172 tonnes in Q2 2022, from the previous quarter," it said in a filing with Bursa Malaysia on Wednesday (July 27).

As at June 30, 2022, 12 out of the plant’s 16 furnaces were in operation.

OMH, which is also listed on the Australian Securities Exchange, said it has modified and converted two of its four idled ferrosilicon furnaces to produce manganese alloys.

“Hot commissioning and performance testing for the two furnaces commenced on June 27 and July 25 respectively, with production currently ramping up,” it said.

OMH said upon full commercial production of the converted furnaces, the Sarawak smelting operations will have an annual production capacity of 333,000 to 400,000 tonnes of manganese alloys.

The plant also has an annual production capacity of about 120,000 to 126,000 tonnes for ferrosilicon and 250,000 tonnes for sinter ore, the company added.

The remaining two idled furnaces are currently undergoing conversion to produce silicon metal.

“Barring any unforeseen circumstances, hot commissioning and testing works are expected to commence in December 2022.

"Upon completion of the conversion works, the plant will have a design capacity to produce 21,000 to 24,000 tonnes of silicon metal per year," it said.

Executive Chairman and Chief Executive Officer Low Ngee Tong said the furnaces scheduled for major maintenance will be shut down in stages to minimise disruptions to ongoing operations.

"As current works are going according to plan, our smelting production guidance for the year remains unchanged," he said.