SMM3, 20 March: recently, OM Holdings announced its fourth quarter 2018 results, the company in the fourth quarter a total of 504895 tons of ore and alloy transactions, due to a reduction in third-party ore transactions, compared with the third quarter 559576 tons, down about 10% from the third quarter. World crude steel production from January to November 2018 was 1.64 billion tons, an increase of 6 per cent over the same period in 2017.
75 per cent owned by OM Materials (Sarawak) Sdn Bhd ()
OM Materials (Sarawak) owns a ferroalloy smelter in the Samalaju Industrial Park in Sarawak, Malaysia. The plant consists of eight main workshops and 16 25.5 MVA furnaces, of which 10 are used to produce ferrosilicon and 6 are used to produce manganese alloys. The plant can produce about 200000 to 210000 tons of ferrosilicon and 250000 to 300000 tons of manganese alloy per year.
As of December 31, 2018, a total of 16 furnaces were in operation, of which 9 furnaces produced standard grade ferrosilicon, 1 furnace produced refined ferrosilicon and 6 furnaces produced manganese alloy. Furnace production exceeded designed capacity in the fourth quarter of 2018, with ferrosilicon producing 57592 tons of "FeSi" and manganese alloys (mainly involving silicon-manganese "SiMn" and high-carbon ferromanganite "HCFeMn") 61734 tons. Production of ferrosilicon in the fourth quarter was comparable to that in the third quarter of 2018, with manganese production up about 11 per cent from the previous quarter. In terms of sales, 60222 tons of ferrosilicon and 64474 tons of manganese alloy were sold in the fourth quarter, 61179 tons of ferrosilicon and 57097 tons of manganese alloy in the third quarter.
OM Materials (Sarawak) Q4 production and sales:
100 per cent owned by OM Materials (Qinzhou) Co Ltd ()
In the fourth quarter of 2018, 11274 tons of manganese alloy and 14354 tons of manganese sinter were produced, and 10060 tons of manganese alloy were sold.
Production and sales of Q4 in Qinzhou smelter and Sintering Plant:
100 per cent owned by OM (Manganese) Ltd ()
In the fourth quarter of 2018, the output of manganese ore was 193562 tons, with an average grade of 35.46%, and the shipment of manganese ore was 231973 tons, with an average grade of 35.67%. Another 1041 tons were sold in China. The construction of the tailings reprocessing plant at the contractor's site is basically completed and is expected to begin in the early second quarter of 2019 and shipped to Bootu Creek, Australia for commissioning.
Q4 production of Bootu Creek mine:
Mining: in the fourth quarter of 2018, the company mined a total of 1.91 million cubic meters of ore, including 428333 tons of manganese ore, with an average grade of 20.52 per cent. Mining activities were completed in the Shekuma stage 6 (Shekuma Stage 6) mine and continued with the mining of the Chugga Far North mine, and the mining of the Tourag phase 8 mine began.
The total amount of ore mined in the fourth quarter was lower than in the third quarter, as mining work in the Shekuma phase VI mine had been completed and, in addition, the mining rate in layers C and D of the, Chugga Far North mine slowed due to complex faults and high iron content of the ore.
Mining activities in Yaka Stage 4 have been postponed pending environmental approval. The remaining ore in the Chugga Far North Stage D mine will continue to be mined at a lower rate. However, this is not expected to affect overall ore recovery. The most recent mining of the Chugga Far North E and F layers is expected to be mined in the next quarter, with a significant reduction in iron content (an indicator of complex faults) and a corresponding increase in productivity once pre-stripping is completed. The mining team is located between the east and west sections of the Bootu Creek synclinal layer and needs to be consigned by road train and transported from the bottom of the satellite ore to the main original mining area.
Logistics: in the fourth quarter, a total of 231973 tons of manganese products were exported from Darwin port through seven ships, and another 1041 tons were sold in China. In the fourth quarter of 2017, a total of five ships carrying 173086 tons of manganese products were exported from Darwin Port. Processing: in the fourth quarter, the mine achieved a total output of 193562 tons of manganese ore, with an average grade of 35.46%. 580646 tons of raw ore was processed, with a productivity of 33.33 per cent, while the budgeted productivity was 40.17 per cent. The lower yield is due to the higher iron content of ores mined from Chugga Far North C and D.
Unit operating costs: C1 unit cash operating costs were A $4.58 / dry tonnage (US $3.29 / dry tonnage) in the fourth quarter and A $3.15 / dry tonnage (US $2.30 / dry tonnage) in the third quarter. Unit cash operating costs for the quarter were mainly due to lower-than-expected production as a result of the decline in production, resulting in an increase in overall C1 costs.
Update on the tailings retreatment plant ("TRP"): TRP construction at the contractor's site is nearing completion and pre-delivery commissioning is expected to begin by mid-February 2019. Upon arrival at the mine, TRP will be assembled and final on-site commissioning is expected to take place at an early stage. Second quarter of 2019.
In view of the large stocks of low-grade ores and heavy media waste, TRP is expected to be able to process about 250000 tons of fine manganese particles per year, with an average grade of 35 per cent to 38%Mn, for about eight years of use.
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