[second Quarterly] the decrease of Manganese Alloy production and Marketing in the second quarter of Dongfang Resources is affected by the change of market demand and local holidays.

SMM8 23: recently, Oriental Resources (Sarawak) Co., Ltd. released the second quarter 2018 production and operation report. The manganese company, based in Samaru, eastern Malaysia, has a ferroalloy smelting project in the Marru (Samalaju) industrial park, which has eight workshops, 16 25.5MVA furnaces, 10 ferrosilicon furnaces and six manganese alloy furnaces. The design capacity is 17-200000 for ferrosilicon and 25-300000 for manganese alloy.

Production and sales of manganese raw materials:

According to the announcement, Dongfang Resources produced 52171 tons of ferrosilicon and 61229 tons of ferrosilicon and high-carbon manganese in the second quarter. Among them, all the ferroalloy output of the company exceeds the production capacity standard of the original boiler design. It is reported that, according to the production capacity design, the average daily output of the boiler is about 63 tons of ferrosilicon, 102 tons of silicon and manganese, and 153 tons of high-carbon manganese iron. In terms of sales, ferrosilicon sold 44766 tons and manganese alloy sold 53782 tons.

As of June 30 this year, a total of 16 furnaces were in operation, including nine for standard taste ferrosilicon, one for refined ferrosilicon and six for manganese alloy.

The specific production and sales volume is as follows:

In terms of manganese alloy, the company produced 61229 tons of manganese alloy in the second quarter, a decrease of about 4% compared with the first quarter, mainly due to the market requirements for the development and production of higher grade manganese alloy. Manganese alloy sales were 53782 tons in the second quarter, down 18 per cent from the first quarter, mainly due to a decline in sales due to the impact of local human and logistical support on two local festivals in Sarawak in June.

Operating status of wholly owned subsidiaries in the second quarter

Dongfang Resources (Qinzhou) Co., Ltd., a wholly owned subsidiary of Dongfang Resources, is a smelting and sintering plant in Qinzhou, Guangxi, China. In the second quarter, the subsidiary produces 9913 tons of manganese alloy, 10553 tons of manganese sinter and 7611 tons of manganese alloy sales. In terms of marketing, manganese ore and alloy trading volume was 765791 tons in the second quarter, down 17.5 per cent from 927724 tons in the first quarter of 2018.

The specific production and sales volume is as follows: