OM Holdings Ltd will slash manganese production by about 30 per cent in 2009 in response to weak short-term demand for the steel-making input.
The miner expects to produce 500,000 tonnes of manganese next calendar year, down from an expected 690,000 tonnes in 2008, which is 10,000 tonnes short of its annual production target.
The company said it had suspended manganese shipments during October and November "to minimise exposure to discharge port stockpiling, provisional pricing and unnecessary counterparty and credit risks during the current period of weaker demand".
Chief executive Peter Toth said rebuilding stockpiles and other activities at the cashed-up company's Bootu Creek mine in the Northern Territory would position it to return to producing at least 700,000 tonnes per annum once market conditions improve.
Unlisted, Ukrainian-owned manganese miner Consolidated Minerals Ltd recently acquired an 11 per cent stake in OM Holdings and Mr Toth said he had been advised the investment was "financial in nature".
Shares in OM Holdings were up three cents, or 3.19 per cent, at 97 cents at 1200 AEDT. – Associated Press
No comments:
Post a Comment