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Japan’s Sumitomo Corporation will coordinate Sakura Ferroalloys Sdn Bhd’s manganese smelting project in Samalaju Industrial Park in Bintulu. It will sell the manganese alloys from the project in specific markets.

Sakura Ferroalloy is a tripartite joint venture of Assmang Ltd of South Africa, Sumitomo and Taiwan’s China Steel Corporation. Sumitomo has a 17% stake in Assmang through its investment in Oresteel Investments (Proprietary) Limited the parent of Assore Ltd. Assore and African Rainbow Minerals Ltd each has 50% stake in Assmang, the largest shareholder in Sakura Ferroalloy.

According to Sumitomo, construction works for the the Bintulu smelting plant was scheduled to begin early next year, with production of managese alloys to start in 2016. The USD 328 million plant is expected to produce 100,000 tonnes of high carbon ferro manganese and 60,000 tonnes of silicon manganese per annum.

Assmang, which already produces and sells manganese ore and manganese alloys in South Africa will supply manganese ore for the project. China Steel will purchase approximaely 30,000 tonnes per year of manganese alloys produced.

It was reported that Metix’s subsidiary company of German group SMS Siemag, is undertaking the detailed design and supply of furnaces as well as supply of new techno logy from SMS Siemag to the smelting pro ject.

As a Greenfield project, the smelting facility will initially consist of 81MVA furnaces complete with related infrastructure, equipment and services to facilitate the production of both ferro and silicon manganese.

Sumitomo said that with the recent signing of the power purchase agreement with Syarikat Sesco Bhd for the supply of 80MW to the plant, the project had secured stable and competitive electric power on long term basis for its production.