Australia-listed miner OM Holdings is aiming to boost output to at least 3 million metric tonnes within five years from an expected output of 1 million tonnes this year, its chief executive said on Monday. Singapore-based OM Holdings, which operates the Bootu Creek Manganese mine in Australia, is aiming to become one of the world's top producers of manganese, rubbing shoulders with industry leaders BHP Billiton and Vale.
"We certainly would like to be one of the top three producers in the manganese industry, that would see us (producing) somewhere between 3-5 million tonnes (per year)," CEO Peter Toth told Reuters in an interview. He said the growth would come from higher production at Bootu Creek and from potential acquisitions.
He expected manganese prices, which briefly dropped last year to as low as $3.50 per dry metric tonne unit (dmtu), to reach $10/dmtu from around $7/dmtu currently. Manganese is an important ingredient in steel production. Toth said the company is expected to report strong financial results for 2010, after its revenue dropped 51 percent last year due to weak commodity prices, although he said the firm would not exceed the record results it had in 2008.