News Release : 2012
Equity and Debt Investment in OM Holdings Ltd(OMH)
Hanwa reached a Share Subscription Agreement ( A$9,767,500 ) and a Convertible Notes Agreement(US$21,450,000) with OM Holdings Ltd on February 28,2012. OMH is a Singaporean company but listed in Australian Securities Exchange, having manganese mines in Australia and South Africa. We will become a strategic partner with them for overseas ferro alloy exploitations and ferro alloy trading through our partnership. OMH’s company profile is as follows.
OM Holdings Limited
|Executive Chairman||Mr.Low Ngee Tong|
|Address||80 Marine Parade Road #08-08 Parkway Parade, Singapore|
|Listing||ASX(Australian Security Exchange)|
|Capital||A$25,155,000(Approx J. Yen 2.2 billion )|
|Net Worth||A$325,903,000(Approx J. Yen 28.4 billion)|
|Business Scope||Manganese ores exploitation, Ferro Alloy production and trading|
|Turnover||A$307,463,000(Approx J.Yen26.8 billion) in 2010|
|Ordinary Profit||A$55,360,000(Approx J.Yen4.8 billion)|
Investment Amount & its method
|Amount||A$9,767,500 + US$21,450,000|
|Method||New share subscription and Convertible Notes Purchase|
Purpose of our investment and future strategy
This is our third investment in ferro silicon, manganese alloys, manganese ores and metal materials resource after the investment in Samancor in South Africa and in Ruukki in Finland for security of ferro chrome supplies.
OMH is now constructing a ferro alloy production plant in Samalaj Industrial Park in Sarawak, Malaysia through their subsidiary company of OM Sarawak, investing US$500million, They expect to produce 310,000tons of ferro silion and 290,000tons of ferro manganese per year according to their production plan. Stable supply of electricity is a key to ferro alloy production. OMH secured such electricity supply for 20 years after concluding PPA(power purchase agreement) contract on February 2,2012 with Sarawak Energy Bhd, of which electricity is scheduled to be produced in Bakun Hydro Electrical Power Plant.
OM Sarawak’s ferro alloy plant is 200hectare in area and are situated in Samalaj Industrial Park, facing seashore ,which is about 50km north east of Binturu city. Production will be expected to start in the second quarter of 2014. Hanwa will jointly work with OMH for sales of their products in Japan and other overseas users.
We think that our partnership & joint work with OMH will greatly help our business in ferro silicon and ferro manganese field for long term and we will put an effort to match our major clients’ current demand, such as Japanese blast furnace mills and electric furnace mills who have intentions to buy ferro alloys from countries other than China.