OM maintains 2024 ferroalloy output projection despite explosion at Samalaju complex

Australia-listed OM Holdings is maintaining its ferroalloy production guidance at 460,000-490,000 mt/year for the 2024 financial year, despite a Nov. 17 explosion at its flagship Samalaju smelting complex in Sarawak, the manganese and silicon metals company said Nov. 18.

The Samalaju smelting complex, operated by OM Holdings' wholly-owned subsidiary OM Materials (Sarawak), has production capacities of 120,000-126,000 mt/year of ferrosilicon, 333,000-400,000 mt/year of manganese alloys and 21,000-24,500 mt/year of silicon metal.

In 2023, OM Holdings produced 139,529 mt of ferrosilicon, 294,432 mt of manganese alloys and 154,273 mt of manganese sinter ore.

The explosion occurred at 1:30 pm local time (0530 GMT) on Nov. 17 and "involved an overflow of molten material from casting molds, causing localized explosions within the affected furnace workshop," the company said.

"The furnace workshop sustained minimal damage, and adjacent furnaces sustained no damage. Operations are anticipated to resume with minimal disruptions, pending approvals from the relevant local authorities," it added.

A source close to OM Holdings said one furnace was affected and that it will resume operations in a "few days only."

The complex consists of eight main workshops housing 16 furnaces, each with a capacity of 25.5 MVA. Of these, six are dedicated to ferrosilicon production, eight to manganese alloys and two to silicon metal.

Platts, part of S&P Global Commodity Insights, assessed the weekly price of 44% manganese ore at $4/dmtu CIF China on Nov. 15, unchanged from Nov. 8, while the price for 75% Si ferrosilicon was assessed at $1,240-$1,280/mt CIF Japan on Nov. 13, down $5/mt from the previous week.