Yes, "Om should start expansion plans asap for the samalaju smelters."
The question is whether OM Sarawak can get power agreements on similar terms to their original power agreement.
The Chinese are always quick to look at further business oportunities and last week Chinese investors were in South Africa looking at investing US$10 billion in a metallurgical complex. This will include 500,000 tonnes annually of silico manganese . http://www.kitco.com/news/2018-07-2...on-metallurgical-complex-in-South-Africa.html
OM Sarawak will have the edge in the fact that the power requirements for silico manganese is around 4000 to 4500KWh per tonne, and power costs in South Africa are much higher than Sarawak. There is mention of a coal fired power plant but this still cannot compete with hydro power.
OMH Price at posting:
$1.26 Sentiment: Buy Disclosure: Held
