OM MATERIALS (SARAWAK) SDN BHD ("OM Sarawak")
OM Sarawak owns a ferroalloy smelter in the Samalaju Industrial Park in (Sarawak), Sarawak, Malaysia. The plant consists of 8 main workshops, with a total of 16 MVA furnaces, of which 10 are used for the production of FeSi,6 for the production of manganese alloys. The plant is designed to produce about 200000 to 210000 tons of FeSi and 250000 to 300000 tons of manganese alloys per year. The plant also includes a sintering plant with a design capacity of 250000 metric tons of sinter per year.
In the second quarter, 13 of the 16 furnaces were in operation, including 7 for FeSi and 6 for manganese alloys. Production of FeSi fell by 16 per cent, while production of manganese alloys increased by 12 per cent. The decrease in FeSi production is due to the COVID- 19 pandemic due to the Government of Malaysia and other state authorities.
As restrictions on the recruitment of new foreign workers are strictly restricted and need to be complied with, the recruitment of foreign skilled and semi-skilled manpower remains a challenge. The lack of skilled manpower has affected the ability of the factory to operate at full capacity.
Sales of FeSi and manganese alloys fell 37 per cent and 19 per cent respectively in the second quarter, due to weak global demand, due to a slower-than-expected recovery in steel demand and a decline in global economic activity due to the COVID-19 pandemic. The construction and transfer of raw material storage warehouse and finished product warehouse has been completed in this quarter. Due to the COVID-19 epidemic, the thermal commissioning of the sintering plant has been postponed and is expected to be carried out in the third quarter of 2020.
OM MATERIALS (QINZHOU) Co Ltd ("OMQ")
Production stopped after the OMQ furnace closed in March 2020. The furnace transformer was subsequently upgraded from 16.5MVA to 25.5MVA to improve production efficiency. In the second quarter, OMQ achieved sales of 4811 tons of manganese alloy and 1528 tons of sinter. Sales of manganese alloys and sinter come from existing stocks.
OM (MANGANESE) LTD ("OMM")
In the second quarter, a total of 1.6 million bcms of raw materials were mined, including 386400 tons of ore, with a manganese grade of 19.01%. The ore output of the mine is 201589 tons and the average grade of manganese is 28.43%. In the second quarter, a total of 380530 tons of ores and alloys were processed, a month-on-month decrease of about 15.4 per cent compared with the first quarter.
In the second quarter, C1 unit cash operating costs were A $4.65 / dmtu (US $3.06 / dmtu),), compared with A $7.99 / dmtu (US $5.27 / dmtu) for the quarter ended March 31, 2020. Unit cash operating costs for the quarter were mainly due to increased production of Masai 2 and 4 ores.
In the second quarter, a total of 203803 tons of manganese products were exported through six ships through the port of Darwin. Domestic sales of 968 tons. By contrast, a total of 65138 tons of manganese products were exported through the port of Darwin through two ships in the last quarter.
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