OM Materials (Sarawak) Sdn Bhd, a joint venture between Cahaya Mata Sarawak Bhd (CMSB) and OM Holdings Ltd (OMH), has awarded the turnkey engineering, procurement and construction (EPC) contract for the ferro alloy smelting project in Samalaju, Sarawak to Sinohydro Corp Ltd, Sinohydro Corp Sdn Bhd and Sinosteel Jilin Electro-Mechanical Equipment Co Ltd.

CMSB owns a 20% stake in OM Sarawak and Australia-listed OMH the remaining 80%. 

Sinohydro is currently involved in the construction of the US$1.3 billion Murum hydroelectric project and the US$276 million Terengganu hydroelectric project.  

Sinosteel Jilin is one of China's leading designer, manufacturer and installer of submerged electric arc furnaces, furnace automation, control systems and furnace transformers.  

"Ten years ago OMH embarked on a ferro alloy smelting project in Qinzhou, China. Standing in the middle of a small fishing village at the time we envisioned a future port and smelting hub with close proximity to power, imported and domestic raw materials and customers. Today, Qinzhou is the world's largest manganese import port and a major global alloy smelting hub and OM Qinzhou developed into a world-class smelting and sintering facility serving the domestic market," OMH executive chairman Low Ngee Tong said in a statement. 

"We see the same vision for Samalaju and OM Sarawak -- only bigger," he added. 

OMH CEO Peter Toth said to ensure the most effective and efficient funding and execution of the project, OM Sarawak will execute the project in two phases. 

"Phase 1 will fast-track higher margin ferrosilicon production to ensure optimum construction and ramp-up flexibility, while continuing with the technical and commercial optimisation of Phase 2." 

OM Sarawak is targeting production to start in the second quarter of 2014 and full commissioning and production in the second quarter of 2015.

Source-The Sun Daily