PERTAMA FERROALLOYS new integrated ferroalloy producer

Transcription

1 PERTAMA FERROALLOYS new integrated ferroalloy producer Presentation for 17 th Asian Ferro-alloys Conference, March 2016 by Dmitriy Nadtochiy, General Manager Commerce Asia Minerals Limited 1

2 Target: To assess competitiveness and challenges of those ferroalloy projects in Malaysia. To review Pertama Ferroalloy project progress and the role AML in its development. 2

3 SARAWAK CORRIDOR OF RENEWABLE ENERGY During , Malaysia announced 5 economic corridors in a farsighted attempt to stimulate investment in traditionally rural areas to create balanced development throughout the country. Sarawak Corridor of Renewable Energy (SCORE) is now firmly established as one of Malaysia s five economic corridors. SCORE has an abundance of natural resources, including clean and safe renewable resources, such as hydropower, that offers commercial users clean energy at competitive rates. Power Generation Plan : (Installed MW) SCORE projects : Bakun: 2,400MW installed capacity Murum (Hydro): 944MW installed capacity Balingian (Coal): 600MW installed capacity Potential SCORE projects Baram 1: 1,200MW installed capacity Smaller stations, such as Linau (hydro), Belepeh (hydro), Baram 3 (hydro), Pelagus (hydro), Kapit (Coal) Northern agenda Limbang & Lawas 3

4 NEW SUPPLY OF ALLOYS FROM MALAYSIA Shareholders Capacity Ferro Alloys Integrate MVA KT SiMn HCFe Mn MC/LC FeMn EMM FeSi d by own Mn Ore Association with end-users by shareholdership Startup Pertama Ferroalloys AML (60%), Nippon Denko (25%), Shinsho (7%), CCC (8%) NSSMC, Kobe Steel 2016 OM Materials Sakura Ferroalloys OM Holdings (80%), CMS (20%) Assmang (54.36%), China Steel (19%), Sumitomo (26.64%) China Steel 2016 Pertama has the longest product line among above 3 smelters Pertama is associated with major Japanese steelmakers through JV partners 4

5 PERTAMA FERROALLOYS: Competitiveness WHY PERTAMA MAY BE CONSIDERED AS ONE OF THE MOST COMPETITIVE SMELTER ON A GLOBAL BASIS: 1 POWER is one of major production cost components: Pertama is competitive on a global basis for electric power. Major competitors to Pertama are affected by rising power costs over the next 20 years. To maximize the benefits of competitive power, Pertama added FeSi and EMM into its product basket. 2 Malaysia government support: Tax incentives No import duty on Mn Ore No export duty on product pl 3 PREFERENTIAL IMPORT DUTY for Malaysia origin in various countries: Japan, Korea, Turkey, SEA countries have 0% import duty for Mn/Si alloys of Malaysian origin No ADD in USA & European markets 4 5 GEOGRAPHICAL LOCATION: Located in the port area = inland logistics cost is low Proximity to Asian sales markets = can perform bulk shipment, make on-call delivery by container Some raw materials (Mn Ore, Silica sand, lime, charcoal) can be sourced locally Distance to major Mn Ore supplying countries is closer than that of competitors SALES & MARKETING of Pertama products is pre-arranged well in advance: Major part of production to be off-taken by Japanese shareholders under long-term contract MOU on sales of remaining tonnage is signed with various AML customers. 5

6 CHALLENGES MALAYSIAN MN-ALLOYS PRODUCERS TO FACE 1. World Economy: China economy risks Slower than expected growth of India, Brazil, Indonesia 2. Market Environment: Revised GSP policy in EU & USA regarding Malaysia Oversupply 3. Raw Materials: Major part is to be imported 4. Human Resources: No human resources with ferroalloy production background 5. Logistics Capacity: Samalaju port capacity Bintulu-Samalaju road limitations 6

7 PERTAMA FERROALLOYS - PROJECT COMPOSITION: The project is a fully integrated works comprising of: Raw Material (RM) Warehouses RM Feeding and batching system Furnace Complex (including six 33MVA SAF Furnaces and two 5MVA refining furnaces) Sinter Plant Power Receiving Sub-station and 4 power distribution centers Cooling Complex Laboratory Workshop and Spares Stores Compressor Complex Finished Goods Warehouse Weighbridges 7

8 PERTAMA CONTRACTUAL STRUCTURE SHAREHOLDERS Asia Minerals Limited Nippon Denko Co. Shinsho Corporation Carbon Capital Corporation 60% 25% 7% 8% Hydro Power Supply (SESCO) Power Purchase Agreement OTHER RAW MATERIALS Offtake Agreements OFF-TAKERS (Shareholders are the main off-takers) MN ORE SUPPLIERS (AML s own mines and/or existing players) - Project Management Company (WAHBA) - Owner s Engineer (Dastur) Raw material supply agreements / contracts Overview and coordination between EPC/Equipment Contractors Construction Contracts - Furnaces Supplier: SAC Co. Ltd (Korea) - Civil Works Contractor: Perbena Emas Sdn Bh (Malaysia) - Steel Structure Contractor: KKB Engineering Berhad (Malaysia) - Main Receiving Step-down substation: Alstom (Singapore, Malaysia) - Water System: Group Engineers Malaysia Sdn Bhd (Malaysia) - Sintering plant: China National Heavy Machinery Corporation (China) - Raw Material Handling System: SAC Co. Ltd (Korea) Technical / Marketing Support Asia Minerals Limited Nippon Denko Chuo Denki Kogyo Shinsho Corporation 8

9 PERTAMA UPDATED PROJECT SCHEDULE Milestones Dates Incorporated as Asia Minerals (Malaysia) Sdn. Bhd. Dec 2010 Signed Power Purchase Agreement (PPA) with Sarawak Energy Bhd. Dec 2011 Changed its name to Pertama Ferroalloys Sdn. Bhd. Feb 2012 Land Breaking Ceremony of Pertama Ferroalloys Sdn May 2012 Consortium of banks leaded by KDB (South Korea) approved project finance USD 220mln for Pertama Ferroalloys Oct 2015 Start of pre-operating phase Feb 2016 Hot commissioning of FESI, SIMN, REF. FEMN Furnaces Apr 2016 Feb 2017 Launching sinter plant Nov 2016 Performance acceptance test Apr

10 PERTAMA PRODUCTS SiMn MCFeMn Microsilica FeSi LCFeMn Main products quantity & specifications Quantity, Furnaces Product Mn, % Si, % C, % (max) P, % (max) S, % (max) kty 33MVA x 3 SiMn min min MVA x 2 LC/MC FeMn min MVA x 3 FeSi BY PRODUCT Silica Fume quantity & specification: Quantity: 5kty Specification: Density kg/m³, SiO2 85%min, LOI 4% 10 10

11 PERTAMA PHOTO GALLERY 1/6 Level 6 Charging Conveyor from Day Bin to Furnace Building 11 11

12 PERTAMA PHOTO GALLERY 2/6 Admin Building - External View 12 12

13 PERTAMA PHOTO GALLERY 3/6 FeSi Furnace 13

14 PERTAMA PHOTO GALLERY 4/6 Tapping Bay Overhead Cranes 14 14

15 PERTAMA PHOTO GALLERY 5/6 Water Plant - Pump House Building with Cooling Towers 15 15

16 PERTAMA PHOTO GALLERY 6/6 Gas Cleaning Plant 16 16

17 AML, VERTICALLY INTEGRATED MANGANESE FERROALLOY PRODUCER It was a long & winding road from small firm in 1993 till vertically integrated producer today: from 1993: Trading (Mn Ore, Mn Alloys) from 2004: Trading (Mn Ore, Mn Alloys) Production (Mn Alloys) from 2010: Trading (Mn Ore, Mn Alloys, Other products) Production (Mn Alloys) from 2013: Trading (Mn Ore, Mn Alloys, Other products) Production (Mn Ore, Mn Alloys) from 2016: Trading (Mn Ore, Mn Alloys, Other products) Production (Mn Alloys, Mn Ore, FeSi) 17

18 AML Group Structure 18

19 AML GROUP: Kudumane Manganese Resources Ownership: KMR: 49% KIH + 51% BEE KIH: 75% AML + 25% NDK KIH is exclusive distributor and exclusive technical partner of KMR. KIH assigned its right to AML. Farm of York -The project is a greenfield manganese mine in Kalahari region, 98 mln.mt of proven Mn Ore resources. Farm of Telele -Drilling result indicates average Mn 37.27% and Fe 4.01% with thickness of Mn layer 7.9m. Continue to drill to prove reserve Farm of Hotazel -indication of 4mil tons of average Mn 43.25% and Fe 5.30% with thickness of 12.85m. Continue drilling Chemical analysis Mn Fe SiO2 CaO P York/ Telele 37.60% 4.60% 5.50% 15.54% 0.03% Hotazel 43.25% 5.30% 3.30% 6.60% 0.03% Sinter 44.50% 5.50% 6.00% 16.95% 0.04% 19

20 KMR: Sales Records & Plans, 000 MT 1,400 1,200 Hotazel York 1, FY FY FY FY FY FY FY FY FY FY FY FY FY FY York , , Hotazel TOTAL , ,300 1,300 1,300 20

21 AML VISION IS TO BE THE PREFERRED GLOBAL INTEGRATED-SUPPLIER OF MANGANESE AML will produce and supply Mn and Si alloys our customers need AML will keep developing further its global customers network AML will widen its product line to provide more and better quality products. AML will continue offtaking Mnalloys from smelters AML will strive for continuous improvement of production cost 21

22 THANK YOU 22