PERTH (miningweekly.com) – ASX-listed OM Holdings on Wednesday warned shareholders of a potential raw material supply chain disruption as the Coronavirus continues to rage.
The company told shareholders that regional authorities in China have taken precautionary measures to contain the spread of the Coronavirus, which has resulted in the interruption of trucking services.
Should these interruptions be sustained, it could potentially disrupt the supply of Chinese sourced raw materials supplied to OM Holding’s flagship smelting complex in Sarawak, Malaysia.
OM Holdings told shareholders that contingency plans for the short-term have been formulated to mitigate the potential raw material disruption, and OM Holdings has decided as an interim precaution to idle two of its ten ferrosilicon furnaces until further notice, placing the furnaces on routine maintenance while the situation is monitored.
The remaining furnaces will continue to operate relying on existing raw material inventory at the plant.