Nippon Denko, Chuo Denko, Shinsho Corp. to Join Malaysia Ferroalloy Project

Nippon Denko, Chuo Denki Kogyo and Shinsho Corporation announced on Wednesday they participate in Malaysian ferroalloy making project led by Hong Kong based manganese producer, Asia Minerals. They launch first phase with 230,000 tonnes of annual ferroalloy output capacity in 2013 for around 24 billion yen to make silicomanganese and other alloy. They eye second phase to make electrolytic manganese metal establishing international competitive ferroalloy plant in other than China.

Nippon Denko has 20% share in Asia Minerals’ wholly owned subsidiary, Pertama Ferroalloy for the project. Shinsho Corp. has 7% share and Chuo Denki Kogyo has 5% share in the joint venture with 8% share by Malaysian engineering company, Carbon Capital. Asia Minerals controls 60% of the joint venture.

The project builds plant with annual 120,000 tonnes of silicomanganese output capacity, 54,000 tonnes of low mid- and low-carbon ferromanganese output capacity and 60,000 tonnes of ferrosilicon output capacity in Samalaju industrial park in Sarawak. The plant starts operation step by step from July-September 2013 increasing the operation to full capacity by end of 2014.

The project secures low cost and stable power supply from world No.2 Bakun hydropower station through 20-year contract with local power company. The project eyes expansion of ferrosilicon and start manganese metal production for the second phase.