JOHANNESBURG (miningweekly.com) – Diversified miner African Rainbow Minerals (ARM) on Wednesday reported that mining group Assmang, which it jointly controlled with Assore, had completed a definitive feasibility study to establish the financial viability of a manganese alloy smelting facility in Malaysia.
Assmang, in collaboration with the China Steel Corporation and Sumitomo Corporation, was pursuing the project to maintain its existing alloy customers and to access growing Asian markets, by leveraging the long-term availability of reasonably priced hydropower with guaranteed low escalation rates in the region.
China Steel had approved an investment of $62.46-million to acquire a 19% interest in Assmang, which would afford it the right to purchase between 30 000 t/y and 32 000 t/y of alloys from the project. However, approval of the investment was subject to approval by the Taiwanese government.
Sumitomo secured board approval for the project and was pursuing the necessary regulatory approvals.
Meanwhile, the boards of Assore and ARM had conditionally approved the project and anticipated starting construction during the first quarter of next year.
The commissioning of the project’s furnaces would take place in 2016 and the project has a design capacity of 169 000 t/y.