Name and Location
Sarawak ferroalloy smelting project, Malaysia.

Client
OM Materials, in which OM Holdings (OMH) holds an 80% interest.

Project Description
The project will be executed in two phases.

Phase 1 entails the construction of a ferrosilicon production facility, consisting of Plant A, with six units of 25.5 MVA furnaces, and Plant B, with ten units of 25.5 MVA furnaces. This phase is expected to fast-track higher-margin ferrosilicon output, producing 308 000 t/y of ferrosilicon alloys and consuming 360 MW of power.

Phase 2 entails the construction of a manganese production facility, consisting of Plant C, with a further six units of 25.5 MVA furnaces, and a 36 m2 sinter plant.

Value
The expected capital expenditure of Phase 1 is $397-million.

Phase 2 will be subjected to further review during the next six months to identify additional value-add engineering solutions and further reduce its capital expenditure requirements.

Duration
Phase 1 is expected to start production during the first quarter of 2014 and to reach full capacity by the fourth quarter.

Latest Developments
OMH has executed a $215-million project finance facility agreement for its Sarawak smelter. The company has also executed a corresponding support agreement.

The facility agreement sets out the terms and conditions between OMH subsidiary OM Sarawak and its four lenders. The facility agreement covers the capital cost for the project’s Phase 1 M$310-million ferrosilicon production facility and the M$126-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.

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

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
OM Materials, tel +65 6346 5515, fax +65 6342 2242 or email om@ommaterials.com.