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OM Holdings secures funding for Sarawak development

2nd April 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Manganese miner OM Holdings (OMH) on Tuesday announced that it had executed a $215-million project finance facility agreement for its Sarawak smelter, in Malaysia.

The company noted that it had also executed a corresponding support agreement document.

The facility agreement set out the terms and conditions between OMH subsidiary OM Sarawak and its four lenders. The facility agreement covers the capital cost for the projects Phase 1 ferrosilicon production facility as well as MYR126-million credit line for the issuance of performance and payment guarantees to power providers as part of the company’s obligations under the power purchase agreement.

OMH said on Tuesday that the execution of the facility agreement and the support agreement represented a significant milestone in the development of the Sarawak project.

Along with the committed equity for OM Sarawak shareholders, the first phase of the project was now fully funded.

The project is expected to produce some 575 000 t/y of ferroalloys, consisting of 265 000 t/y of manganese ferroalloys and 310 000 t/y of ferrosilicon alloys, in addition to 300 000 t/y of sintered manganese ore.

Edited by Creamer Media Reporter

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