Record production has transformed WA-based resources group OM Holdings into one of the world's biggest manganese companies.
It today reported a record quarterly production of 205,372 tonnes and a record monthly production in July of 77,398 tonnes - a 25 per cent jump in tonnages and a 31 per cent leap in manganese unit production compared with the previous quarter - from its flagship Bootu Creek mine near Tennant Creek in the Northern Territory.
OM Holdings also reported plunging production costs as yields and production increased. The cost is at $3.20 a metric ton - the lowest in the mine's history - while overall third-quarter costs are $3.80, down 20 per cent on the second quarter and 44 per cent lower than the first quarter of this year.
A second processing plant, now close to completion, will push production to more than 1 million tonnes a year.
It has forecast the fourth-quarter production at 280,000 tonnes at 38 per cent manganese. Shipping and sales is expected to be 240,000 tonnes, up from 185,385 tonnes in the third quarter.
The company's wholly-owned Qinzhou smelter in China processed and sold 10,527 tonnes of high-carbon ferro manganese in the third quarter - up three-fold on the previous quarter - as Chinese demand for the metal increased.
This smelter is to be complemented by a new sinter ore plant that is expected to be commissioned at the end of this year.
OM Holding's chief executive, Peter Toth, says 2010 will be an exciting year as it benefits from the completion of plant upgrades and additions.
In a deal worth $294 million, the company has also bought a 49.9 per cent interest in South Africa's Tshipi Kalahari manganese project.
Subject to shareholders approval, OM Holdings will buy out five co-investors in the project in return for 139.9 million OM Holdings shares.
The company will also pay $49.2 million for a 20 per cent interest in Ntsimbintle Mining which owns the remaining 50.1 per cent of the Tshipi project.
``The proposed transaction will propel OMH into the league of leading manganese producers with a diversified, long-life, high-grade and low-cost ore resource supported by full participation across the entire manganese value chain, including the China-focused marketing and distribution network,'' says Mr Toth.
OM Holdings also has exploration potential at Bootu Creek over the tenement's 3326sq.km and has a 12 per cent share in Shaw River Resources - which is exploring for manganese in WA - and a 10 per cent stake in Territory Resources which operates the Frances Creek iron ore mine in the Northern Territory.
Source: Perth Now
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