PERTH (miningweekly.com) – Singapore-based OM Holdings (OMH) is investigating the possible acquisition of an interest in Consolidated Minerals’ (ConsMin’s) Woodie Woodie manganese operations, in Western Australia.

The Woodie Woodie deal could lead to the two companies combining their Australian manganese operations, which would create the world’s second-largest low-phosphorous siliceous high-grade manganese ore producer.

Both companies were now investigating this option to determine whether any potential strategic, operating or marketing synergies could be achieved as a result of such a transaction, OMH said in a statement on Monday.

The two companies have executed a confidentiality agreement, under which OMH would start a staged due diligence investigation on Woodie Woodie, with the initial phase providing OMH access to information on the project.

ConsMins owns an 11,7% stake in OMH through its wholly owned subsidiary Stratford Sun.

OMH owns the Bootu Creek manganese mine in the Northern Territory. The project has a one-million ton a year production capacity and a mine life of 13 years.

It also owns a furnace complex in the Guangxi province in China, where it produces manganese ferroalloys. The plant has a 50 000-t/y high carbon ferromanganese capacity and has a 300 000-t/y sinter plant.