Incorporated in Bermuda
(ARBN 081 028 337)
(Malaysian Registration No. 202002000012 (995782-P))
CONTENTS
CHAIRMAN’S REPORT
DIRECTORS
KEY MANAGEMENT
CORPORATE DIRECTORY
CORPORATE STRUCTURE
FINANCIAL HIGHLIGHTS
GROUP OVERVIEW
PROCESSING AND SMELTING OPERATIONAL REVIEW
MARKETING AND TRADING OPERATIONAL REVIEW
BOOTU CREEK MINE
TSHIPI É NTLE MANGANESE MINING (PTY) LTD
ASX LISTING RULE 5.8.1
SUSTAINABILITY STATEMENT
GRI CONTENT INDEX
CORPORATE GOVERNANCE
DIRECTORS’ STATEMENT
INDEPENDENT AUDITOR’S REPORT
STATEMENTS OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
ASX & BURSA SECURITIES ADDITIONAL INFORMATION
01
02
04
05
06
07
08
10
14
17
24
25
34
84
90
108
111
114
115
116
117
119
175
WHO WE ARE
OM Holdings Limited is a manganese and silicon smelting company, with vertical exposure in mining and trading. We are engaged in
the business of trading raw ores, smelting, and marketing of processed ferroalloys. With over 25 years in the industry, we are listed on
both the ASX and Bursa Malaysia, and have operations across Australia, China, Malaysia, Singapore and South Africa.
Today, the Group is one of the world’s leading suppliers of manganese ores and ferroalloys and seeks to be the main ferroalloy supply
partner to major steel mills and other industries.
OUR PURPOSE
Our purpose is to create sustainable value for our shareholders and stakeholders through developing and acquiring cost competitive
resource assets, managing them in an environmentally safe and optimised manner, and realizing their full potential by marketing
effectively.
OUR VALUES
We will fulfil our purpose by adhering to the following values:
• Safety and Wellbeing • Care and Respect • Integrity and Accountability • Innovation and Entrepreneurial • Collaboration • Sustainability
90
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 Dear Shareholders,
In 2023 we saw a prolonged and sustained decline in ferroalloy
prices throughout the year, with prices globally declining by more
than 20% for the full year. This decline resulted in ferroalloy
prices declining two years in a row from their peak in 2021, at
the height of the supply chain and energy crisis caused by COVID
and the stimulus policies of that time. As we shared last year,
supply shortages anticipated from geopolitical conflicts did not
materialize, and producers who added to capacity were left with
a net surplus. Today, prices are firmly in pre-COVID territory, but
nascent signals suggest that this longer than usual decline from a
higher than usual peak has run its course.
Looking at the manganese alloy markets, we saw silicomanganese
test the US$840-850 CIF Japan price floor twice towards the end of
2023, during a particularly challenging quarter. Since then, prices
have rebounded and remained firmly above US$900, with certain
contracts closing US$100 higher than the bottom of the market.
This suggests both supply discipline from certain producers, and
declining capacity utilization in much of the developed world. For
ferrosilicon, while we look to China as marginal suppliers to the
market, much of 2024 will hinge on the outcome of the attempt to
nationalize Russia’s largest ferrosilicon producer. If this process is
successful, it is likely that more consumers will shun products of
Russian origin, depriving the global markets of a major supplier
of ferrosilicon. These factors are also partially reflected in order
books, with near term months selling down at a faster pace.
Our Sarawak Plant continues to operate from a unique position,
with access to long-term competitive hydropower, anchoring
its ability to produce energy-intensive ferroalloy efficiently
and cleanly. Ferroalloy production for the year was 433,961
tonnes, 20% higher than the prior year, and outperforming
initial guidance for the year. This was due to shorter downtime
from maintenance, as well as re-purposing the modified silicon
metal furnaces to capture margins for ferrosilicon. We anticipate
restarting silicon metal commissioning this year.
We continue to carry out rehabilitation activities at our Bootu
Creek Mine with a focus on repairing landforms to prepare for
seeding after the year-end wet season. With an environmental
bond of US$7.9 million lodged with the Northern Territory
Government in Australia, we are concurrently working on a
revised Mine Management Plan which will outline the revised mine
closure criteria, allowing for proportional refund applications.
With planned rectification works in place, we expect to restart the
Ultra Fines Plant in Q4 2024.
In 2023, we also concluded the sale of 90% of our smelter in
China for consideration of approximately US$25.8 million. The
proceeds received to date of approximately US$10.2 million have
been deployed to working capital needs and sustaining capital
expenditure. With a 10% retention stake in the asset, we continue
to maintain a strategic relationship with the new owners and
expect to provide marketing and procurement services when the
production restarts.
Despite challenging market conditions, we managed to generate
US$94.9 million in EBITDA for the year. While overall production
and trading volume increased, this was offset by lower average
selling prices across all products, significantly compressing
margins. Given the natural logistics time lag between importing
raw materials, stocking at site, and shipping our products,
performance will always be impacted in a declining market
environment where raw material costs and selling prices are
declining in tandem. We expect this effect to reverse itself as
markets stabilize, and to work in our favour as prices start
improving.
Total borrowings increased slightly as revolving credit facilities
were drawn to facilitate the acquisition of the remaining 25% of
OM Sarawak in December 2022. This was subsequently offset with
ongoing principal loan repayments which amounted to US$47.6
million in 2023, majority of which related to the Sarawak smelter
project financing. For full year 2023, we effectively maintained
total borrowings to equity at 0.64 times.
CHAIRMAN’S REPORT
On the corporate front, we successfully placed 27,633,464 fully
paid ordinary shares in December 2023 to JFE Shoji, our decade
long business partner, for consideration of approximately A$13
million. This coincides with the end of a term loan that JFE had
maintained with the Company and had extended periodically,
since the inception of the Sarawak Plant. We welcome JFE as a
shareholder and look to strengthening the relationship for new
developments and partnerships.
This year, we achieved a notable milestone in our sustainability
ISO 14001 and 45001
journey as OM Sarawak received
certifications for Environmental and Occupational Safety and
Health management systems. These certifications, accredited by
the United Kingdom Accreditation Service (UKAS), underscore our
dedication to maintaining international standards and reflect our
ongoing sustainability commitment.
As we enter the third year of our sustainability reporting, we’ve
taken a significant step forward by incorporating Scope 3 data
into our greenhouse gas (GHG) reporting. We are pleased
to share that our GHG statement, prepared in accordance
with ISO14064-1:2018, underwent thorough verification by a
reputable third-party consultant, affirming its satisfactory status.
We have also expanded our Life Cycle Analysis (LCA) exercise this
year to include ferrosilicon, which complemented the analyses
conducted on manganese ore and manganese alloys over the
past two years. This gives us a more holistic understanding of
our products’ environmental impact across its lifecycle – from
raw material extraction to production and use, allowing for more
informed decision making on minimizing our footprint while
maximizing resource efficiency.
Looking ahead, our long term vision remains clear despite
in the market. While still prioritising the hot
headwinds
commissioning of the silicon metal furnaces, the decision to
fully ramp up to commercial production and enter the market is
strategic, as we aim to await the opportune moment to enter the
market, ensuring optimal returns for our stakeholders.
While we continue to produce our core products – ferrosilicon
and manganese alloys, we are also looking at developing various
bespoke and higher value-added products in 2024, working
closely with steel makers who supply specialized steel products
to the EV motor supply chain. Cost management initiatives and
operational efficiencies will remain a focus area to strengthen
and support the Company’s financial performance through the
current round of market cycle recovery.
Beyond market fundamentals, the Company stands to benefit
as the region’s lowest cost quartile producer. This competitive
advantage, combined with our operational expertise and market
know-how in managing product flows flexibly, positions the
Company favourably for a market recovery.
I would like to express my gratitude to all stakeholders, especially
our long-term shareholders, employees, customers and suppliers
for the unwavering support and confidence throughout this
challenging period. We remain committed to creating value for
all stakeholders and seek to be the region’s leading suppliers,
while pursuing organic growth sustainably.
LOW NGEE TONG
Executive Chairman
01
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 DIRECTORS
Mr Low is a qualified Mechanical Engineer, having graduated from the National
University of Singapore. He has over 42 years of experience in the steel, ferro
alloy and building materials industries in Asia. That experience was gained with
Chiyoda Limited, a global Japanese civil engineering group, Intraco Limited,
Intraco Resources Pte Limited, and C Itoh Limited, a significant Japanese metals
trading house. Mr Low has demonstrated a significant network for marketing in
China and internationally. He was the Chief Executive Officer of OMH since its
incorporation and subsequent listing in 1998. In October 2008, Mr Low became
the Executive Chairman of OMH. Mr Low’s business relationships and reputation
with several large multinational corporations in Asia have enabled OMH to
successfully establish its profitable operations based in Singapore and extending
to China, Malaysia, South Africa and Australia.
LOW NGEE TONG
Executive Chairman
Mr Zainul Abidin graduated with a Bachelor of Arts (Honours) in Economics and
Malay Studies from the University of Singapore. Mr Zainul was a Member of
Parliament (from 1997-2011) and served as the Senior Minister of the State for
the Ministry of Foreign Affairs of the Government of Singapore, a position he held
since 2006. Prior to serving in government service, Mr Zainul had an illustrious
career in journalism which included the positions of Editor of Berita Harian, The
Singapore Business, The Sunday Times and Associate Editor of The Straits Times.
Mr Zainul currently serves as the Ambassador to Kuwait (Non-Resident) and was
formerly the Foreign Minister’s Special Envoy to the Middle East. Mr Zainul also
used to serve as a Corporate Adviser to Singapore’s Temasek International Pte
Ltd, and is now a member of the Temasek Foundation Cares Board of Directors.
He is a member of the Nanyang Technological University Board of Trustees and
Board of Directors of Mediacorp.
Mr Zainul served numerous government agencies, councils and civic organizations
including Executive Secretary of the Singapore Port Workers’ Union, a member
of the Board of Directors of the Port of Singapore Authority, President of the
Singapore Islamic Religious Council, Chairman of the Malay Heritage Foundation,
Chief Executive Officer of the Council for the Development of the Malay/Muslim
Community (MENDAKI), the Council for Security Co-operation in the Asia Pacific,
the National University of Singapore Council as well as being the Patron of the
Singapore Rugby Union and Adviser to the Hockey Federation.
Mr Zainul Abidin is a member of the Company’s Remuneration Committee.
Ms Wolseley holds a Bachelor of Commerce degree and is a Fellow Chartered
Accountant of the Australia and New Zealand Institute. She is the Principal of a
corporate advisory company and has over 32 years of experience as Company
Secretary to a number of ASX-listed companies operating primarily in the
resources sector. Previously Ms Wolseley was an Audit Manager both in Australia
and overseas for an international accounting firm. Her expertise includes
corporate secretarial, management accounting, financial and management
reporting in the mining industry, IPOs, capital raisings, cash flow modelling and
corporate governance. Ms Wolseley is a member of the Company’s Audit and
Remuneration Committees.
Ms Wolseley is also a board member of Aquinas College, an independent school
for boys in Perth, Western Australia.
ZAINUL ABIDIN RASHEED
Independent
Deputy Chairman
JULIE ANNE WOLSELEY
Non-Executive Director &
Joint Company
Secretary
02
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 DIRECTORS
Mr Tan Peng Chin was the founder, managing director and consultant of Tan Peng Chin
LLC until he retired from the firm on 31 December 2015. Mr Tan was also a Notary
Public and Commissioner for Oaths from 1995 to 2015. He was an Accredited Mediator
with the Singapore Mediation Center. Mr Tan’s legal expertise includes corporate
finance, banking, company and commercial laws, international trade, joint ventures
and issues concerning shareholders and directors. In addition, Mr Tan has acted in
numerous cross border transactions in the course of his legal career spanning more
than 38 years. Mr Tan has served as an Independent Director in numerous Singapore-
listed companies since 1996. He graduated with a Bachelor of Laws (2nd Upper Class)
from the National University of Singapore in 1982.
He was also a member of the Institutional Review Board of the Singapore National
Cancer Center from 2007 to 2014. Mr Tan was instrumental in setting up Clarity
Singapore Limited in 2010, a charity under the auspices of Caritas (the Catholic Church)
to assist persons suffering from mental illnesses and was Chairman / Vice Chairman of
the Board until his retirement from the Board in Oct 2021. Mr Tan has also volunteered
with various charities including Christian Outreach for the Handicapped and the
Roman Catholic Prison Ministry. He is also a director of Orchestra of Music Makers Ltd.
With his board experience in various companies in Asia and his legal expertise, Mr Tan
is able to assist the Company in its strategic pursuits. He has been a Non-Executive
Director since 14 September 2007.
Mr Tan is the Chairman of the Remuneration Committee.
Dato’ Abdul Hamid Bin Sh Mohamed is a Fellow of the Association of Chartered Certified
Accountant. He started off his career in an accounting firm before joining Bumiputera
Merchant Bankers Berhad, a merchant and investment bank, and subsequently
Amanah Capital Malaysia Berhad, another financial institution group owned by the
largest unit trust fund on Malaysia then.
He eventually joined the Kuala Lumpur Stock Exchange (“KLSE”), now known as Bursa
Malaysia, where he rose from Senior Vice President Strategic Planning & International
Affairs, subsequently to Deputy President (Strategy and Development) and finally
to the position of Chief Financial Officer. During his 5 years with KLSE, he led several
major projects including the acquisition of Kuala Lumpur Options and Financial Futures
Exchange, Commodity and Monetary Exchange of Malaysia and the subsequent
merger of both exchanges to form the Malaysian Derivatives Exchange, as well as the
acquisition of Malaysian Exchange of Securities Dealing and Automated Quotation. He
also led KLSE’s demutualisation exercise.
He holds directorships in various companies in Malaysia including MMC Corporation
Berhad (a listed company on Bursa Malaysia which was recently privatised), Maybank
Investment Bank Berhad (a subsidiary and investment banking arm of Malayan Banking
Berhad which is also listed on Bursa Malaysia), and Ekuiti Nasional Berhad (a Malaysian
government-linked private equity company). He is currently the Executive Director
(and major shareholder) of Symphony House Sdn Bhd, a privately owned investment
holding company. Other directorship includes Maybank International Holdings Sdn
Bhd and PT Maybank Sekuritas Indonesia.
Dato’ Abdul Hamid Bin Sh Mohamed is a member of the Company’s Audit Committee.
Ms Tan Ming-li is currently a partner of the Malaysian legal firm, Cheang & Ariff. She
graduated with a double degree in Law (Hons) and Science from the University of
Melbourne. She was called to the Malaysian Bar in 1994 and has been in legal practice
for over 30 years. Her areas of expertise include corporate and securities laws where
she is involved in advising on capital market transactions, mergers and acquisitions,
corporate restructuring and corporate finance related work.
She currently serves as an independent director for CapitaLand Malaysia Trust and
BP Plastics Holding Berhad.
03
TAN PENG CHIN
Independent
Non-Executive
Director
DATO’ ABDUL HAMID
BIN SH MOHAMED
Independent
Non-Executive
Director
TAN MING-LI
Independent
Non-Executive
Director
OM HOLDINGS LIMITED | ANNUAL REPORT 2023
KEY MANAGEMENT
as at 1 April 2024
NAME
POSITION
Heng Siow Kwee
Director, Group HR , Joint Company Secretary
Eugene Tan
Group Financial Controller
Chen Xiao Dong
Managing Director, OM Sarawak
Dai Han Ping
General Manager, OM Sarawak
Adrian Low
Li Ying
Don Heng
Managing Director, OMS
General Manager, OMM
Managing Director, OMML
Goh Ping Choon
General Manager, Corporate, OMS
Mustapha Bin Ismuni
Director, OM Sarawak
Lisa Chee
General Manager, HR, OM Sarawak
Choi Pik Choing
Deputy General Manager, Finance, OM Sarawak
Liu Xian Feng
General Manager, OMQ
Pu Guo Liang
General Manager, Engineering, OMA
Chen Hui Zhi
General Manager, Trades, OMQT
04
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 CORPORATE DIRECTORY
Directors
Low Ngee Tong
Zainul Abidin Rasheed
Julie Anne Wolseley
Tan Peng Chin
Dato’ Abdul Hamid
Bin Sh Mohamed
Tan Ming-li
(Executive Chairman)
(Independent Deputy Chairman)
(Non-Executive Director)
(Independent Non-Executive Director)
(Independent Non-Executive Director)
(Independent Non-Executive Director)
Name of Principal Bankers
Bank of China
Citibank N.A., Singapore Branch
Commonwealth Bank of Australia
Export-Import Bank of Malaysia Berhad
Malayan Banking Berhad
RHB Bank Berhad
Standard Chartered Bank
United Overseas Bank Limited
Name and Address of Auditors
Foo Kon Tan LLP
Public Accountants and Chartered Accountants
1 Raffles Place, #04-61/62
One Raffles Place Tower 2
Singapore 048616
Name and Address of Appointed Australian
Agent and Australian Registered Office:
OM Holdings (Australia) Pty Ltd
102 Angelo Street
South Perth, WA 6151
Name of Bermuda Resident Representative
Conyers Corporate Services (Bermuda) Limited
Website
: www.omholdingsltd.com
ASX Code
: OMH
Bursa Code : OMH(5298.KL)
Company Secretaries
Heng Siow Kwee
Julie Anne Wolseley
Conyers Corporate Services (Bermuda) Limited
ADDRESS OF COMPANY AND REGISTRIES
The address of the Corporate Office of the Company:
10 Eunos Road 8
#09-03A Singapore Post Centre
Singapore 408600
Telephone
Facsimile
Email
: (65) 6346 5515
: (65) 6342 2242
: om@ommaterials.com
The address of the Bermuda Registered Office:
Clarendon House
2 Church Street, Hamilton HM 11
Bermuda
The address of the Company’s
Principal Share Registry in Bermuda:
Conyers Corporate Services (Bermuda) Limited
Clarendon House
2 Church Street, Hamilton HM 11
Bermuda
The address of the Company’s
Branch Share Registry in Australia:
Computershare Investor Services Pty Ltd
Level 17
221 St Georges Terrace
Perth, Western Australia 6000
Telephone
Facsimile
Website
: (618) 9323 2000
: (618) 9323 2033
: www.computershare.com
The address of the Company’s
Branch Share Registry in Malaysia:
Tricor Investor & Issuing House Services Sdn Bhd
Unit 32-01, Level 32
Tower A, Vertical Business Suite
Avenue 3, Bangsar South
No. 8 Jalan Kerinchi
59200 Kuala Lumpur
Malaysia
Telephone
Website:
: (603) 2783 9299
: https://www.omholdingsltd.com/investor-relations/shareholder-services/
05
OM HOLDINGS LIMITED | ANNUAL REPORT 2023
CORPORATE STRUCTURE
as at 31 December 2023
(Incorporated in Bermuda ARBN 081 028 337)
(Malaysia Registration No.) 202002000012 (995782-P)
Listed on ASX on 19 March 1998
Listed on Bursa Malaysia on 22 June 2021
100%
(OMM)
OM (Manganese) Ltd
(Incorporated in Australia)
100%
(OMH BVI)
OM Holdings (B.V.I) Limited
(Incorporated in B.V.I)
100%
(OMH MU)
OMH (Mauritius) Corp.
(Incorporated in Mauritius)
99.99%
(OMR HK)
OM Resources (HK) Limited
(Incorporated in Hong Kong)
26%
(NMPL)
Ntsimbintle Mining Proprietary Limited
(Incorporated in South Africa)
50%
(Tshipi Mines)
Tshipi é Ntle Manganese Mining (Pty) Ltd
(Incorporated in South Africa)
100%
(OMMY)
OM Resources (M) Sdn.Bhd.
(Incorporated in Malaysia)
60%
(OMMR)
OM (ANR) Resources Sdn.Bhd.
(Incorporated in Malaysia)
100%
(OMS)
OM Materials (S) Pte Ltd
(Incorporated in Singapore)
100%
(OMST)
OM Materials Trades (S) Pte. Ltd.
(Incorporated in Singapore)
100%
(OMQT)
OM Materials Trading (Qinzhou) Co., Ltd
(Incorporated in China)
100%
(OMSM)
OM Materials (Samalaju) Sdn.Bhd.
(Incorporated in Malaysia)
100%
(OMSA)
OM Materials (Sarawak) Sdn. Bhd.
(Incorporated in Malaysia)
100%
(OMMP)
OM Property Development Sdn. Bhd.
(Incorporated in Malaysia)
80%
(OMA)
OM Hujin Science & Trade (Shanghai) Co., Ltd
(Incorporated in China)
100%
(OMML)
OM Materials & Logistics (M) Sdn. Bhd.
(Incorporated in Malaysia)
100%
(OMME)
OM Engineering Tech (M) Sdn. Bhd.
(Incorporated in Malaysia)
94%
(OMNA)
OM New Aomeng Engineering and Tech Co. Ltd.
(Incorporated in China)
50%
(WOSL)
Wen Ocean Shipping & Logistics Sdn. Bhd.
(Incorporated in Malaysia)
10%
(OMQ)
OM Materials (Qinzhou) Co., Ltd
(Incorporated in China)
33.33%
(OMJ)
OM Materials Japan Co. Ltd.
(Incorporated in Japan)
Subsidiaries
Associates
06
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 FINANCIAL HIGHLIGHTS
as at 31 December 2023
5 YEAR GROUP FINANCIAL HIGHLIGHTS
Financial year ended
31 December
2023
US$'million
2022
US$'million
2021
US$'million
2020
US$'million
2019
US$'million
Revenue
589.2
856.6
779.9
543.9
714.6
Profit/(loss) before
income tax
Profit attributable
to owners of the
Company
32.7
105.6
84.5
(3.5)
41.0
18.1
67.8
61.5
3.5
39.4
Total assets
940.9
886.0
943.6
874.0
842.6
Shareholders'
funds
411.4
396.1
368.0
309.3
297.7
714.6
543.9
779.9
856.6
589.2
Net tangible assets
414.6
399.7
443.7
361.7
355.8
Revenue
(US$’million)
FY2022
FY2023
856.6
589.2
FY2019
FY2020
FY2021
FY2022
FY2023
Total Assets Per Share
(US$)
FY2022
FY2023
1.20
1.23
FY2019
FY2020
FY2021
FY2022
FY2023
1.14
1.19
1.28
1.20
1.23
Gross Profit
(US$’million)
FY2022
FY2023
206.9
94.8
US$
US$
US$
US$
US$
Total assets per
share
1.23
1.20
1.28
1.19
1.14
Net asset backing
per share
Basic profit per
share
Gross profit
(US$ millions)
Gross profit
margin (%)
US$ cents US$ cents US$ cents US$ cents US$ cents
54.2
54.3
60.2
49.1
48.3
2.5
9.2
8.4
0.5
5.3
2023
2022
2021
2020
2019
94.8
206.9
206.0
66.7
106.2
16.1
24.2
26.4
12.3
14.9
SALES BY INTERNATIONAL REGIONS
Region
2023
2022
2021
2020
2019
%
%
%
%
%
Asia Pacific
81.0
76.6
86.4
86.1
83.6
FY2019
106.2
Americas
8.5
14.1
3.7
1.7
4.6
FY2020
66.7
Europe
6.9
6.4
6.3
5.5
7.7
FY2021
FY2022
206.0
206.9
FY2023
94.8
Middle East
3.2
2.8
3.6
6.3
3.9
Africa
Total
0.4
0.1
0.0
0.4
0.2
100.0
100.0
100.0
100.0
100.0
07
OM HOLDINGS LIMITED | ANNUAL REPORT 2023
OMH GROUP OVERVIEW
KEY OPERATING ENTITIES OF OM
HOLDINGS GROUP
OMH is the investment holding company
of the Group. The main operating entities
within the Group are outlined below.
OM Materials (Qinzhou) Trading Co Ltd
(“OMQT”)
OMQT is the distribution arm of OMS in China.
This company supports the operations of OMS and
distributes and trades materials in China.
OM Materials (Qinzhou) Co Ltd (“OMQ”)
OMQ owns a manganese alloy smelter in Qinzhou,
Guangxi province, China. The smelter is located
approximately 1km
the Qinzhou port,
from
providing OMQ a competitive advantage with
respect to ease of access to seaborne manganese
ore. OMQ also provides the Group with intangible
benefits such as market intelligence and insights
into smelter economics in China. Production ceased
since December 2021 due to elevated power-tariffs
in China. A Share Sale Agreement for the sale of a
90% equity interest in OMQ to Beijing Kunpeng
Hongsheng Metal Co. Ltd was executed on 1
November 2023. OMS has retained a 10% interest in
OMQ.
08
OM Materials (S) Pte Ltd (“OMS”)
OMS, based in Singapore is the strategic trading hub
of the Group. It handles the logistics, marketing,
product flow and distribution activities of the Group.
Core businesses of OMS include marketing of OM
Sarawak’s alloy production, as well as the distribution
of third party ores to the Group’s global network of
customers.
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 OM Holdings Limited (“OMH” or the “Company”) and its subsidiaries (collectively the “Group”) has
an established track record of over 25 years in exploration, project development, operations and
marketing and trading. The Group’s core businesses comprise the production of manganese alloys
and ferrosilicon, and the marketing and trading of manganese ore and ferroalloys.
Today, the Group is one of the regions major ferrosilicon and manganese alloy producers.
OM Materials (Sarawak) Sdn Bhd
(“OM Sarawak”)
OM Sarawak owns and operates a ferrosilicon
and manganese alloy smelter in Sarawak, East
Malaysia, with design annual production capacity
of approximately 120,000 to 126,000 tonnes of
ferrosilicon, approximately 333,000 to 400,000
tonnes of manganese alloys, and 21,000 to 24,500
tonnes of silicon metal per annum. The plant also
consists of a sinter plant that has a design capacity
to produce 250,000 tonnes of sinter ore per annum.
OMH (Mauritius) Corp (“OM MU”)
OM Mauritius has a 13% effective interest in the
Tshipi Borwa Manganese mine located in the
world-class Kalahari Manganese field located in the
Northern Cape of South Africa. The Tshipi Borwa
Manganese mine currently has a production rate of
approximately 3.3 to 3.6 million tonnes per annum
and the Group also markets its 13% effective
interest of the mine’s annual production.
OM (Manganese) Ltd (“OMM”)
OMM owns the Bootu Creek manganese mine
located in Northern Territory, Australia. The Bootu
Creek mine is located approximately 110km north
of Tennant Creek. Mining operations commenced in
November 2005 and ceased on 13 December 2021.
The mine was placed under care and maintenance
mode since January 2022.
09
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 PROCESSING AND SMELTING OPERATIONAL REVIEW
SAMALAJU SMELTING COMPLEX
L
A
U
N
N
A
N
O
I
T
C
U
D
O
R
P
D
N
A
D
L
O
S
D
E
T
R
O
P
X
E
139,529 tonnes
294,432 tonnes
Ferrosilicon
Manganese Alloys
135,545 tonnes
290,770 tonnes
Ferrosilicon
Manganese Alloys
10
O M H O L D I N G S L I M I T E D | A N N UA L R E P O R T 2 0 2 1
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PROCESSING AND SMELTING OPERATIONAL REVIEW
SAMALAJU SMELTING COMPLEX
Stoking of raw materials
OVERVIEW
OM Materials (Sarawak) Sdn Bhd (“OM Sarawak”) owns the
Ferroalloy Smelting Project in Sarawak, Malaysia (the “Plant”). The
Plant consists of 8 main workshops with a total of 16 units of 25.5
MVA furnaces, of which 6 furnaces are allocated for ferrosilicon
production, 8 units for manganese alloys production, and 2 units
for silicon metal production. Upon completion of the conversion
works and scheduled major maintenance, the Plant will have
a design production capacity of 120,000 to 126,000 tonnes of
ferrosilicon, 333,000 to 400,000 tonnes of manganese alloys
and 21,000 to 24,500 tonnes of silicon metal per annum. The
Plant also consists of a sinter plant that has a design capacity to
produce 250,000 tonnes of sinter ore per annum.
PLANT CONSTRUCTION & DEVELOPMENT
In August 2023, the two ferrosilicon furnaces, which underwent
conversion
successfully
to produce manganese alloys,
completed a 12-month defect liability period with no reported
defects or imperfections. According to production records,
the combined output of these two furnaces reached 75,753
tonnes of silicomanganese and 11,078 tonnes of high carbon
ferromanganese in 2023. These figures translates to an average
operating rate of approximately 99% and an average daily
production output of around 116 tonnes for silicomanganese and
156 tonnes for high carbon ferromanganese. The outstanding
performance of the furnaces highlights the experience, expertise
and knowledge of the Operations Team and underscores the
reliability and efficiency of the furnace equipment.
As previously announced on 12 April 2023, the hot commissioning
and performance testing for the first silicon metal furnace
was temporarily suspended as the furnace was not operating
as anticipated within the framework of the Engineering,
Procurement and Construction contract. A comprehensive
examination was conducted to identify and rectify the issues,
with the implementation of corrective measures, including the
replacement of specific machineries and parts. As fabrication
works occurred offshore, the components were only delivered to
the Plant at the end of December 2023. The installation process
commenced in January 2024 and was completed in March 2024.
12
During the fabrication lead time, both silicon metal furnaces
were repurposed for ferrosilicon production to maximize furnace
utilization. The Plant intends to recommence hot commissioning
and performance testing for one silicon metal furnace in the
second quarter of 2024. This will be followed by the second unit
of the silicon metal furnace in the second half of 2024, contingent
upon the first unit meeting the performance acceptance criteria.
The Silicon Metal Warehouse Project successfully reached
practical completion in July 2023. Commenced in August 2022,
the project aimed to construct new raw materials storage yards
and sheds for silicon metal production.
FeSi and Mn Alloys Workshops
OPERATIONS
Since 1 April 2022, Malaysia has progressively transitioned into
the COVID-19 endemic phase and reopened its international
borders. This has eased the hiring of skilled foreign workers, with
the local authorities shortening the processing time required
for the application of foreign worker work permits. To ensure
a sustainable workforce, OM Sarawak focuses on retaining
experienced and highly skilled foreign workers for its core smelting
and maintenance positions. OM Sarawak is concurrently working
on its upskilling program for local individuals, empowering
employees to take on pivotal production roles.
OM HOLDINGS LIMITED | ANNUAL REPORT 2023
PROCESSING AND SMELTING OPERATIONAL REVIEW
SAMALAJU SMELTING COMPLEX
In 2023, OM Sarawak implemented various training programs, encompassing upskilling, management development, and safety and
awareness programs, with a total of 171,652 training hours recorded. As at 31 December 2023, OM Sarawak had a total of 1,851
employees, of which 79% of employees were locals.
As at 31 December 2023, a significant milestone was achieved with 12 out of 16 furnaces having achieved the performance acceptance
criteria outlined in the major maintenance contract. Of the remaining four furnaces, two furnaces are currently in the hot commissioning
and performance testing stage, while the remaining two furnaces are scheduled for major maintenance in 2025 after a thorough
examination of the existing furnace condition.
The annual production volume of ferrosilicon and manganese alloys amounted to 139,529 tonnes and 294,432 tonnes respectively.
The production volume for manganese alloys recorded a substantial increase of 36% or 77,619 tonnes compared to the previous year.
This was primarily attributed to the completion of major maintenance on all manganese alloys furnaces in 2023 and the successful
conversion of two ferrosilicon furnaces to produce manganese alloys, which resulted in higher production capacity in 2023. Conversely,
there was no significant change in ferrosilicon production volumes as the interim ferrosilicon production at the silicon metal furnaces
compensated the capacity shortfall created by the four ferrosilicon furnaces that underwent major maintenance.
In terms of sales volumes, 135,545 tonnes of ferrosilicon and 290,770 tonnes of manganese alloys were shipped in 2023, representing
97% of total ferrosilicon production volume and 99% of total manganese alloys production volume.
Product
(tonnes)
Production
Past 5 Years Production and Sales Records
2023
2022
2021
2020
2019
Ferrosilicon (FeSi)
139,529
140,355
131,059
167,443
230,735
Manganese Alloys
(SiMn, HCFeMn)
294,432
216,813
216,539
227,406
248,163
Manganese Sinter Ore
154,273
112,711
99,824
24,125
-
Sales
Ferrosilicon (FeSi)
135,545
146,646
113,783
171,502
219,828
Manganese Alloys
(SiMn, HCFeMn)
290,770
216,604
203,938
231,129
240,280
Manganese Sinter Ore
1,625
-
7,132
-
-
Additional operational achievements in 2023 were as
follows:
•
The launching ceremony for the Rewilding of
Sarawak’s Urban Totally Protected Areas through
Habitat Restoration at Similajau National Park,
which took place on 21 June 2023. 800 trees out of
10,000 trees were successfully planted during the
initial phase of the project
• Attained accreditation for ISO 14001 and ISO 45001
on 4 December 2023
• Conducted OSHE Week
in collaboration with
various local authorities to promote safety, health
and environmental awareness within the Samalaju
community
OSHE Week
OM Sarawak’s first Occupational Safety and Health, and
Environment (OSHE) week, held from 10 to 14 July 2023, was
organized by the Safety and Health department in collaboration
with Environment Department and Administrative Department.
Over the course of 5 consecutive days, the events drew an average
attendance of 30 individuals from various departments, as well
as representatives from neighbouring plants. Participating in OM
Sarawak’s OSHE week program were representatives from the
Bintulu/Samalaju branches of the following agencies:
1.
2.
3.
4.
5.
6.
7.
8.
Department of Safety & Health, Malaysia (DOSH)
Department of Environment, Malaysia (DOE)
Fire and Rescue Department of Malaysia (BOMBA)
Ministry of Health, Malaysia (KKM)
National Anti-Drug Agency (AADK)
National Institute of Safety and Health (NIOSH)
Social Security Organization (SOCSO)
Bintulu General Hospital
13
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 MARKETING & TRADING
OPERATIONAL REVIEW
3
2
0
2
2
2
0
2
1,909,869 tonnes
Ores and Alloys
1,447,897 tonnes
Ores and Alloys
14
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O M H O L D I N G S L I M I T E D | A N N UA L R E P O R T 2 0 2 1
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MARKETING & TRADING
OPERATIONAL REVIEW
OVERVIEW AND UPDATE IN 2023
The ferroalloys market experienced a consistent decline
throughout 2023. According to Platts, the price of ferrosilicon
opened at US$1,630 per tonne CIF Japan and closed at US$1,285
per tonne CIF Japan while the price of silicomanganese opened
at US$1,040 per tonne CIF Japan and closed at US$905 per
tonne CIF Japan.
Despite the optimism surrounding China’s border reopening
in early 2023 following the COVID-19 lockdown, the anticipated
surge
in downstream demand for ferroalloys failed to
materialize. This was attributed to the subdued performance
of the construction sector and lower-than-expected export
orders in China, hindering the market’s recovery despite initial
positivity.
SALES BY GEOGRAPHICAL SEGMENT
The expansion of silicomanganese production capacity in India
has filled the supply gap which resulted from the Russia-Ukraine
war, marking a new phase of market equilibrium. Following this
expansion, Ukraine’s output has been fully displaced by exports
from India, leading to a subsequent decline in prices. This
decline however, is seen as necessary to alleviate the inventory
overhang accumulated during the period of market imbalance.
Recent shipping crisis and unusual weather patterns have
underscored the vulnerability of the global shipping network.
Missile incidents near the Suez Canal and extreme drought
conditions affecting the Panama Canal have resulted
in
heightened freight rates for container and bulk cargo shipping.
Consequently,
the
challenges in the movement of cargo worldwide, potentially
impeding trade flows.
these developments have added
to
2023
2022
2021
2020
2019
%
81.0
8.5
6.9
3.2
0.4
%
76.6
14.1
6.4
2.8
0.1
%
86.4
3.7
6.3
3.6
0.0
%
86.1
1.7
5.5
6.3
0.4
%
83.6
4.6
7.7
3.9
0.2
100.0
100.0
100.0
100.0
100.0
Region
Asia Pacific
Americas
Europe
Middle East
Africa
Total
16
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 OPERATIONAL REVIEW BOOTU CREEK MINE
L
A
R
E
N
M
I
S
E
C
R
U
O
S
E
R
6.86 million tonnes
13.18% Mn as at 31 December 2023
O M H O L D I N G S L I M I T E D | A N N UA L R E P O R T 2 0 2 1
17
OPERATIONAL REVIEW BOOTU CREEK MINE
OVERVIEW
OM (Manganese) Ltd (“OMM”) is a wholly owned subsidiary
with its main activities being exploration and mining (up until
December 2021) of manganese ore at the Bootu Creek Mine.
The Bootu Creek Mine is located 110 km north of Tennant
Creek in the Northern Territory of Australia. OMM’s principal
administration office is in Perth, Western Australia.
The exploration and subsequent development of the Bootu
in September 2001. Mining
Creek Project commenced
operations commenced in November 2005 and the first batch
of ore was processed in April 2006.
The main mineral lease (ML24031) is in the Bootu Creek area
on pastoral leases, where the mining and processing operations
were based and where the currently defined Mineral Resources
ore
located on
EL28041).
located (excluding Renner West deposit,
A preliminary feasibility study including metallurgical test work
and mine assessment of the Renner West Inferred Resource
commenced in 2020 with the view of upgrading the deposit to
Ore Reserve status. The Renner Springs Project area is located
approximately 70 km northwest of the Bootu Creek mine site,
covering an extensive dolomite-siltstone sequence which hosts
several shallow dipping and flat lying manganese occurrences.
The addition of the UFP in March 2020, was designed to treat
the tailings streams and produce a nominal 250,000 tonnes
per annum. There has been a number of start-up issues
Figure 1. Locality Plan
associated with the UFP including poor screening efficiencies
which affected the downstream separation and optimisation
of the classifiers. This contributed to lower product grades and
yields. Several screen media have been trialled to improve the
screening efficiencies and rectification works are ongoing with
measures implemented aimed at optimising the performance
of the UFP.
In November 2023 OMM Board approved the financial model
for the UFP restart. Critical orders have been placed and OMM
targets to restart the UFP during Q4 2024.
The processing of manganese ore is described diagrammatically below:
Figure 2. Bootu Creek Manganese Processing Plant Schematic
Figure 3. Bootu Creek location and Tenement plan
18
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 OPERATIONAL REVIEW BOOTU CREEK MINE
Manganese product produced on the mine site was transported 60 km to the Muckaty Rail Siding on a sealed private road and then
approximately 800 km to the Port of Darwin via the Alice Springs to Darwin rail line.
Manganese product was stockpiled at the rail head at the Port of Darwin prior to being transported to the port ship loader and
loaded onto vessels for shipping to overseas markets.
Production ceased on 25 January 2022 and Bootu was placed on Care and Maintenance.
Rehabilitation Activities conducted during Care and Maintenance
During Care and Maintenance, OMM utilised available resources to repair the damage to the Waste Rock Dump’s (WRD) and satellite
Run of Mine (ROM’s) stockpile areas caused by the heavy rain brought on by the Tropical Cyclone Ellie. The primary focus was to
repair and rock line the WRD to prevent and limit further damage and wash outs. Primary focus was also placed on cleaning and
tidying up operational work areas. The extremely high rainfall affected the seeding done in November 2022 and the germination
rate was negatively impacted as seeds were washed off the batters into the catchment bunds around the WRDs.
At the end of December 2023, 48.18ha (WRD and ROM) on the Western Limb was ready for seeding, which completed seeding in late
February 2024. Tourag WRD works will be completed in 2024 and ready for seeding in December 2024.
Chugga WRD (looking South)
19
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 OPERATIONAL REVIEW BOOTU CREEK MINE
During the 2023 financial year, no manganese product was exported through the Port of Darwin.
Mining
Total Material Mined
Ore Mined - Tonnes
Ore Mined - Mn Grade
Production
Lump - Tonnes
Lump - Mn Grade
Fines/SPP/UFP - Tonnes
Fines/SPP/UFP - Mn Grade
Total Production - Tonnes
Total Production - Mn Grade
Sales
Lump - Tonnes
Lump - Mn Grade
Fines/SPP/UFP - Tonnes
Fines/SPP/UFP - Mn Grade
Total Sales - Tonnes
Total Sales - Mn Grade
Unit
bcms
dt
%
dt
%
dt
%
dt
%
dt
%
dt
%
dt
%
Table 1. Production and Sales FY2019 - FY2023
Years ended 31 December
2023
2022
2021
2020
2019
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
4,737,723
1,131,066
20.85
7,411,431
1,008,015
19.19
5,748,339
1,034,190
20.48
12,643
29.27
5,608
26.82
18,071
28.69
164,400
28.28
27.296
33.2
191,696
28.66
678,337
27.25
176,150
32.95
854,487
28.42
551,448
27.09
145,879
33.77
697,328
28.49
607,411
26.72
130,608
34.51
738,019
28.10
553,976
26.56
88,755
35.34
642,731
27.78
438,509
32.83
131,581
36.62
570,090
33.71
452,774
32.91
168,772
36.40
621,546
33.86
Annual Manganese Production
’
s
t
d
e
r
O
n
M
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
-
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016*
2017
2018
2019
2020
2021
2022*
2023*
*Note – No production and mining activity conducted in FY2016, FY2022 and FY2023
Year
Annual Manganese Shipments
’
s
t
d
e
r
O
n
M
1,200,000
1,000,000
800,000
600,000
400,000
200,000
-
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016*
2017
2018
2019
2020
2021
2022
2023*
*Note – There was no shipment in FY2023
Year
20
OM HOLDINGS LIMITED | ANNUAL REPORT 2023
OPERATIONAL REVIEW BOOTU CREEK MINE
Bootu Creek Mineral Resource
There was no ore mined at Bootu Creek in 2023. The 31 December 2023 Mineral Resource Estimate of 6.86 million tonnes remains
unchanged.
Undiluted
Deposit:
CFN
Masai 5
Tourag
ZuluSouth
Renner West
Insitu Resource
ROM Stocks
SPP Stocks
UFP Rejects
UFP Tailings
Total Resource
Measured
Mt
%Mn
0.00
0.00
0.00
0.00
Indicated
Mt
0.35
0.13
0.67
0.23
0.28
1.66
0.13
0.05
2.07
2.95
6.86
%Mn
23.09
26.47
22.69
20.91
22.26
22.75
13.50
14.50
12.10
8.55
13.19
Inferred
Mt
%Mn
0.00
0.00
0.00
0.00
Combined
Mt
0.35
0.13
0.67
0.23
0.28
1.66
0.13
0.05
2.07
2.95
6.86
%Mn
23.09
26.47
22.69
20.91
22.26
22.75
13.50
0.00
12.10
8.55
13.19
Table 2. Bootu Creek Mineral Resource Estimate as at 31 December 2023
Figure 5. Location Plan for the Bootu Creek Mineral Resources as
at 31 December 2023
MINERAL RESOURCE STATEMENT
Mineral Resources at Bootu Creek remain unchanged at of 6.86Mt.
Dec 2022 at 15% Mn cutoff
Dec 2023 at 15% Mn cutoff
Change
CFN
Masai 5
Tourag
Zulu South
Renner West
Insitu Total
ROM Stocks
SPP Stocks
UFP Rejects
UFP Tailings
Grand Total
Pit Base
195
245
220
230
255
Mt
0.35
0.13
0.67
0.23
0.28
1.66
0.13
0.05
2.07
2.95
6.86
%Mn
23.09
26.47
22.69
20.91
22.26
22.75
13.50
14.50
12.10
8.55
13.19
Pit Base
195
245
220
230
255
Mt
0.35
0.13
0.67
0.23
0.28
1.66
0.13
0.05
2.07
2.95
6.86
%Mn
23.09
26.47
22.69
20.91
22.26
22.75
13.50
14.50
12.10
8.55
13.19
Table 3. Bootu Creek Mineral Resource Estimate as at 31 December 2022 vs 31 December 2023
Mt
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
21
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 OPERATIONAL REVIEW BOOTU CREEK MINE
2023 Bootu Creek Exploration Program
The Bootu Creek and Renner Springs exploration programs
planned for 2023 have been deferred to 2024, owing to the
Bootu Creek Operation being placed on Care and Maintenance
in January 2022.
Exploration - Bryah Basin Manganese Joint
Venture (OMM 51%, Bryah 49%)
In April 2019 OMM entered into a Farm-In and Joint Venture
Agreement with Bryah Resources Limited (ASX:BYH) (Bryah) for
the manganese rights in approximately 660 km2 of exploration
tenements in the Bryah Basin, located approximately 150
km north of the town of Meekatharra in central Western
Australia. The agreement includes the historic Horseshoe
South manganese mine which has been the largest, and highest
grade, manganese mine in the Murchison region.
Under the terms of the agreement, OMM paid Bryah A$500,000
in two cash instalments and funded an additional A$500,000
of exploration expenditure in the initial exploration program to
earn an initial 10% Joint Venture interest at the end of August
2019.
The results of the initial exploration drilling were sufficiently
encouraging for OMM to proceed with Stage 2 of the Joint
Venture. OMM funded a further A$2.0 million (in 4 separate
tranches of A$0.5 million each) on exploration, to earn a 51%
interest in the Joint Venture in March 2022. OMM assumed
management of the Joint Venture in July 2022. OMM and Bryah
co-contributed A$700,000 on a 51%:49% basis up to the end of
September 2022. OMM is currently sole funding the next A$1.8
million in exploration to earn a 60% interest in the Joint Venture.
On 2 March 2022, Bryah released the maiden Joint Venture
Inferred and Indicated JORC 2012 compliant Mineral Resource
estimate totalling 1.84 million tonnes at 21.0% Mn1 covering the
Horseshoe South, Horseshoe Extended, Brumby Creek East,
Brumby Creek West, Area 74, and Black Hill deposits in March
2022.
Reverse Circulation (RC) drill program (94 holes for 3,296
metres) was carried during 2023 at Brumby Creek West and
Redrum deposits, and at the Gold Trip, Black Hill Northeast
and Epona prospects. Results were announced to ASX on 16
November 2023.2
A Mineral Resource update was announced by Bryah on 24
August 20233 with the current Mineral Resources standing at
3.066 Million tonnes (Mt) at 20.2% Mn. The Indicated Mineral
Resource tonnage increased by 91% to 2.072 Mt at 20.9% Mn
and the Inferred Mineral Resource increased by 32% to 0.994
Mt at 20.2% Mn. The Mineral Resource estimate included Area
74, Brumby Creek East, Brumby Creek West, Redrum and Black
Hill deposits on E52/3237 and Horseshoe South and Horseshoe
Extended on M52/806.
1
2
3
Refer Bryah Resources Limited (ASX: BYH) ASX announcement dated
3 March 2022 “Maiden Bryah Basin Manganese Mineral Resource”
Refer Bryah Resources Limited (ASX: BYH) ASX announcement
dated 16 November 2023 “Manganese Drilling Results at West Brumby
and Redrum continue to impress”
Refer Bryah Resources Limited (ASX: BYH) ASX announcement
dated 24 August 2023 “Manganese Minneral Resource Increases to 3.07
Million Tonnes at 20.2% Mn.”
22
Figure 6. Deposit Location Plan for the Bryah Basin Manganese
Joint Venture
701 Mile Manganese Project with Great Sandy
Pty Ltd
OMM executed a Farm-in and Exploration
Joint Venture
Agreement with Great Sandy Pty Ltd (“701 Mile JV Agreement”)
in April 2021, with the project located approximately 90km
southeast of Newman in Western Australia, on E52/3587.
Ethnographic and Archaeological surveys were completed
during 2021 and 2022, and RC drilling in 2022, with results
released in the OMH September 2022 Quarterly Production and
Market Update (ASX 26 October 2022).
A A$0.25 million “Due Diligence” phase of the 701 Mile JV
Agreement was completed and an Option Fee of A$50,000 paid
by OMM in October 2022. OMM has subsequently deemed the
project potential to be limited, and has withdrawn from the 701
Mile JV Agreement (on E52/3587) with Great Sandy Pty Ltd, with
no retained equity.
Weelarrana Project Area
E52/3892 is a 100% Exploration Licence owned by OMM located
approximately 5km to the west of the 701 Mile Manganese
Project area. The Exploration Licence was granted in September
2021 has since been reduced to 30 blocks.
Geological mapping and a 90 square kilometre high resolution
image and Lidar aerial survey was completed in 2022.
OMM has subsequently deemed the project potential to be
limited and surrendered the licence on 13 September 2023.
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 OPERATIONAL REVIEW BOOTU CREEK MINE
The Company has entered a Joint Venture Agreement with Bryah Resources Limited (ASX:BYH) (Bryah) for the manganese rights
in approximately 660 km2 of exploration tenements in the Bryah Basin. During the year Bryah announced a Mineral Resource
Estimate (MRE) update on 24 August 2023 with the current Mineral Resources standing at 3.066 Million tonnes (Mt) at 20.2% Mn.
Refer to Bryah’s ASX Release for full details.
2022 Estimate
2023 Estimate
Category
Indicated +
Inferred
Prospect
Area 74
Brumby Creek
Horseshoe
Redrum
Black Hill
Total
kt
239
927
646
nil
24
1,836
Mn %
23.6
21.2
20.5
nil
29.7
20.2
kt
302
1,314
646
781
24
3,067
Mn %
kt % Change
23.8
20.2
20.5
18.6
29.7
20.2
26
42
nil
New zone
nil
68
Table 4. Bryah Basin Mineral Resource as at 31 December 2022 vs 31 December 2023
Figures are reported on a 100%-ownership basis. OMM interest is 51%, Bryah 49%.
The Company confirms that it is not aware of any new information that materially affects the content of this ASX release and that
the material assumptions and technical parameters remain unchanged.
Competent Person Statement
The information in this Annual Mineral Resource Statement that relates to the Bootu Creek Mineral Resources is based on and
fairly represents information prepared by Mr Craig Reddell, a competent person, who was a consultant to the Company at the
time. The supporting information has been reviewed by Mr Mark Menzies who is an independent consultant to the Company
and who is a member of the Australian Institute of Geoscientists. Mr Menzies has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as Competent
Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. Mr Menzies approves the mineral resource statement as a whole and consents to the inclusion of this information in
the form and context in which it appears.
This report includes information that relates to Exploration Results and Mineral Resource estimates prepared and first disclosed
under the JORC Code (2012) and extracted from previous ASX announcements, as follows:
- Bryah Resources Limited (ASX: BYH) ASX announcement dated 3 March 2022 “Maiden Bryah Basin Manganese Mineral Resource”
- Bryah Resources Limited (ASX: BYH) ASX announcement dated 1 August 2022 “New Manganese mineralisation identified at Redrum Prospect”
- Bryah Resources Limited (ASX: BYH) ASX announcement dated 31 August 2022 “Continued Manganese drilling Success at Redrum and Brumby
West”
- Bryah Resources Limited (ASX: BYH) ASX announcement dated 24 August 2023 “Manganese Minneral Resource Increases to 3.07 Million Tonnes
at 20.2% Mn.”
- Bryah Resources Limited (ASX: BYH) ASX announcement dated 16 November 2023 “Manganese Drilling Results at West Brumby and Redrum
continue to impress”
The Company has released all material information that relates to Exploration Results, Mineral Resources and Reserves on a
continuous basis to the ASX and in compliance with JORC 2012. The Company confirms that it is not aware of any new information
that materially affects the content of this ASX release and that the material assumptions and technical parameters remain
unchanged.
Ore Reserves
The Bootu Creek Operation was placed under Care and Maintenance following suspension of mining on 13 December 2021, with
processing of Run of Mine (ROM) ore completed on 7 January 2022. No Ore Reserves are reported for Bootu Creek, and there is no
current mine plan. Any future re-estimation of the Bootu Creek Ore Reserve will require re-optimisation of the remaining Mineral
Resource based on updated product prices and specifications, production costs and geotechnical parameters.
23
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 TSHIPI É NTLE MANGANESE MINING PROPRIETARY LTD
(“TSHIPI”)
Tshipi Project Location
TSHIPI EXPORTS TOTALLED
3,215,949 tonnes
2023
• A world-class low cost long-life manganese
asset.
• Largest manganese mine in South Africa in
terms of production and export and one of
the five largest manganese mines globally.
• Tshipi commenced exporting manganese ore
in 2012.
• Total exports included both lump and fines.
Overview
The Tshipi Borwa Mine is located on the south western outer rim of the Kalahari Manganese Field
making the ore resources shallower and more amenable to open pit mining.
OMH has an effective 13% interest in Tshipi through its 26% strategic partnership with Ntsimbintle Holdings Proprietary Limited,
the majority 50.1% owner of Tshipi. The remaining 49.9% share is owned by Jupiter Mines Limited.
Tshipi owns a manganese property in the world-class Kalahari Manganese Field located in the Northern Cape of South Africa. The
Kalahari Manganese Field, which stretches for 35km long and is approximately 15km wide, hosts a significant portion of the world’s
economically mineable high grade manganese ore resources.
The Tshipi Borwa mine is an open pit manganese mine with an integrated ore processing plant which commenced production in
October 2012. As of 28 February 2023, Tshipi Borwa Mine has a total Mineral Resource Estimation of circa 425 million tonnes in
accordance with JORC Code (2012). In 2023, Tshipi exported a total of 3,215,949 tonnes of manganese ore.
Tshipi Ownership Structure
OM Holdings Limited
100%
OMH Mauritius Corp
26%
Ntsimbintle Holdings
Proprietary Limited
74%
Jupiter Mines Limited
49.9%
Ntsimbintle Mining
Proprietary Limited
50.1%
Tshipi é Ntle Manganese
Mining Proprietary Limited
Tshipi Borwa Mine
The Tshipi Borwa ore body commences at a depth of 70m below the surface and the ore body is contained within a 30m to 45m thick
mineralised zone which occurs along the entire Borwa Property. The ore layer dips gradually to the north-west at approximately 5
degrees.
Tshipi’s strategy is to mine and process the lower 15m of the mineralised zone, commonly known as the bottom cut, as it bears a
higher grade ore. A portion of the upper 15m mineralised zone, referred to as the top cut, is planned to be stockpiled for possible
use later.
Mining of Tshipi Borwa is a relatively simple truck and shovel open cast operation. Once exposed the manganese ore is drilled,
blasted and loaded onto trucks and hauled to the main ROM stockpile.
The ROM stockpile feeds the processing plant which is designed to treat approximately 3.3 to 3.6 million tonnes per annum of
manganese ore.
These products are stockpiled before loading through a state-of-the art load-out station onto railway trains or road trucks.
Inland transportation of manganese products from the mine site is carried out by rail, and complemented by a combination of road
and rail solutions to increase logistics capacity.
Tshipi’s product is then exported through (i) the Port Elizabeth multi-purpose terminal, including Coega; (ii) the Saldanha multi-
purpose terminal; (iii) the Luderitz port in Namibia; or (iv) the Durban Bulk Connections terminal.
24
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 ASX LISTING RULES 5.8.1 &
5.9.1 SUMMARY INFORMATION
Mineral Resource estimation summary:
The Bootu Creek manganese deposits are strata-bound, located at the contact between the underlying dolomite-siltstone Attack
Creek Formation and the overlying ridge forming sandstone of the Bootu Formation in the Tomkinson Group, within the Ashburton
Province of the Palaeozoic Tennant Creek Inlier. The mineralised manganese bearing sandstone horizon is folded around the gentle
NNW plunging Bootu Syncline, can be traced for 24km and dips around 30o towards the fold axis.
The manganese ore is supergene enriched within a deeply weathered profile. The Bootu Creek pre-mining manganese resource
models have a combined strike length of 16 km, with deposit models ranging from 0.7 km to 2.9 km in length. Mineralisation widths
vary from 3 m to 15 m and ore mineralogy consists predominately of Pyrolusite and Cryptomelane in a silica rich gangue within the
supergene zone, overlaying a Rhodochrosite and Braunite unweathered zone at depths of greater than 90m from surface.
All Bootu Creek resource models, other than Renner West, are located within Mineral Lease ML24031, located 120 km north of
Tennant Creek, Northern Territory, Australia. The Renner West Inferred Mineral Resource is located on EL28041 and located 70 km
NW of the Bootu Creek mine site. Both tenements are granted, 100% owned by OMM and have no security of tenure issues at the
time of reporting.
Resources at Bootu Creek (“BC”) are predominantly sampled by vertical 5.5” face sampling Reverse Circulation (RC) drilling (91% of
total drilled), HQ3 diamond (DD) drilling (2%) and open percussion (PC) drilling (7%), based on a nominal 50 m x 25 m spaced grid.
Hole depths range from 12 m to 156 m and collar locations are picked up by Mine Surveyors using MGA94 co-ordinates. The 31
December 2021 BC resource delineation dataset for Bootu Creek (trimmed to remaining resource models) comprised 390 drill holes
for 25,338 metres and the Renner West (RW) dataset had 145 drill holes for 6,284 metres. Tailings in TSF1, TSF2 and TSF 3 at Bootu
Creek were sampled by 49 core holes for 455 metres, drilled utilising a track mounted Power Probe earth core drill. The 17 diamond
holes drilled at Bootu Creek and Renner Springs in 2019-2021, within current or since mined resource models, were drilled to
provide core in order to assess geotechnical parameters and metallurgical characteristics. All recovered drill core is photographed.
Sampling of RC holes is done on 1 metre downhole intervals and rotary split to produce approximately 3 kg samples. Intervals
selected for analysis are generally limited to visible manganese mineralisation and adjacent host rock. Mineralised diamond core
is quarter sawn to obtain 1 metre or geological intervals, with half core retained for density determination and metallurgical test
work. Earth core samples were at 1.2 metre downhole intervals and split lengthways for assay and metallurgical samples. All drill
samples are crushed, dried and pulverised (total prep) to produce a sub sample for XRF analysis. Field quality control procedures
involve the use of field duplicates, certified BC standards (at an insertion rate of approx. 1:130) and use of a number of commercial
laboratories for analysis.
The sample preparation of RC and earth core samples involve oven drying and full pulverisation before splitting off an XRF assay
sub-sample. Diamond core assay samples are quarter sawn, jaw crushed and follow the same sample preparation technique. A
pulp sub-sample is collected for analysis by XRF for the following elements: Mn, Fe, Al2O3, SiO2, P, Pb, S, TiO2, MgO, K2O, BaO, CaO,
Cu, Zn and Co3O4. LOI (loss on ignition) is assessed by thermo-gravimetric determination. Laboratory QAQC involves the use of
internal laboratory standards using certified reference material, blanks, splits and replicates as part of the in house procedures.
OM (Manganese) Ltd (“OMM”) developed 6 reference standards in 2007 and 2010 for a range of manganese grade values, using
blends of Mn, Fe and quartz material. These were sent to 10 commercial laboratories with returned values in the +-2% range against
of the mean value. BC standards are submitted with each assay batch and results monitored to maintain an independent check on
laboratory assays.
There is a high degree of confidence in the geological interpretation of the Bootu Creek manganese deposits gained through
extensive close spaced drill testing, a relatively planar strata-bound geological setting and several years of active mining at this
mature mining operation. Ore mineralogy was determined by XRD analysis and optical petrology on selected drill core, RC chip and
lump product (gravity concentrate) samples.
Resource models were digitised and wire-framed from updated interpreted geological and assay drill cross sections prepared
by OMM. These wireframes were used to select resource drill intersections and composite data was extracted for Mn, Fe, SiO2,
Al2O3, BaO and P based on one metre sample increments. The nugget effect from variography represented only 20% - 30% of the
total variability, suggesting low inherent random behaviour for the manganese mineralisation, and did not warrant grade capping.
The models were estimated using the Ordinary Kriging (OK) estimation technique with Surpac resource estimation software, and
coded with attributes for material type, resource classification, model domain and against OMM survey pit pickups. Block Model
Parent Cells are 25 m (Y) by 10 m (X) by 5 m (Z) and compare favourably with maximum drill spacing of 50 m by 25 m or 40 m by 20
m. The along strike search radius varied from 130 m in the shorter or faulted models through to 290 m for the highly continuous
Chugga-Gogo. The number of samples was set at a minimum of 15 and a maximum of 32 for passes 1 & 2. Pass 3 used a minimum
of 2 samples to fill model extents. Search ranges varied from 130 m up to 290 m in the deposits of up to 3 km strike length. The
search ellipsoids were flattened disc shapes in the plane of the mineralisation with varying anisotropic ratios designed to model
shallowly plunging manganese trends within the domains.
Current bulk density regression formulae are based on 366 waxed (or waxed equivalent) HQ3 core samples selected from 52
metallurgical composites distributed through all deposits included in the Ore Reserve. The bulk density measurements were
determined in 2009 by Amdel (Perth) using the wet and dry methodology. Six density regressions were determined for Chugga/
Gogo, Shekuma, Xhosa, Masai/Tourag, Yaka and Zulu deposits. Renner West, Foldnose and Zulu South use the Yaka (most
conservative) regression option. Bulk density of Tailings is estimated at 1.60 kg/m3 and Rejects at 1.73 kg/m3 on a dry tonnes’ basis,
both assessed on historical site data.
O M H O L D I N G S L I M I T E D | A N N UA L R E P O R T 2 0 2 1
25
The mineralised domains have demonstrated continuity in both geology and grade to support the definition of Mineral Resource
and Ore Reserves, and the classifications applied under the JORC Code (2012 edition). The nominal drillhole spacing of 50 m
by 25 m was considered to provide adequate geological and grade continuity definition to assign an Indicated Mineral Resource
classification to the majority of the deposits at Bootu Creek. Measured Mineral Resources were restricted to closely drilled resource
blocks within 15 m vertically of a mined pit floor, reflecting the high level of geological and grade confidence.
Metallurgical assumptions are based on test work conducted on 93 composites selected from 79 diamond holes drilled into all
deposits included in Ore Reserves. The test work consists largely of individual particle pyknometry (IPP) on lump ore and Heavy
Liquid Separation (HLS) test work on fines (+1 mm). The heavy media treatment plant reconciliation factors, product yield and
recovery are reviewed annually. The Inferred Mineral Resource at Renner West was upgraded to an Indicated Mineral Resource
following encouraging inhouse HLS metallurgical test work conducted on 3 diamond core holes drilled in late 2019.
Heavy Liquid Separation (HLS) and screened assay analysis, washability and process simulation test work (conducted by Nagrom)
on earth core sampling of the Tailing Storage Facilities TSF 1, TSF2 and TSF 3 has been utilised to justify the newly constructed Ultra
Fines Plant (UFP). The UFP Rejects Mineral Resource is based surveyed stockpiles and the same metallurgical test work as used to
assess the UFF Tailings.
The input data is comprehensive in its coverage of the mineralisation and does not favour or misrepresent in-situ mineralisation.
Bootu Creek manganese deposits are located within a well-defined geological setting and this allows definition of mineralised zones
based on a high level of geological understanding. The Mineral Resource models have been validated by open pit mining since 2006
which reconcile well against the resource estimates.
Mineral Resource estimates are economically constrained within optimised pit shells, utilising Whittle mining software, based on
current mining, processing and logistics costs, projected sales revenue, geotechnical and deposit specific analysis of yield and
recovery parameters.
Ore Reserve estimation summary:
No 31 December 2023 Ore Reserve is quoted for the Bootu Creek Operation as it was placed under Care and Maintenance following
suspension of mining on 13 December 2021 and processing of Run of Mine (ROM) ore was completed on 7 January 2022.
There is no current mine plan for the Bootu Creek Operation. Any future re-estimation of the Bootu Creek Ore Reserve will require
re-optimisation of the remaining Mineral Resource based on updated product prices and specifications, production costs and
geotechnical parameters.
26
OM HOLDINGS LIMITED | ANNUAL REPORT 2023ASX LISTING RULES 5.8.1 & 5.9.1 SUMMARY INFORMATION JORC (2012 Edition) Table 1
Section 1 Sampling Techniques and Data
Criteria
Explanation
Sampling Techniques -
Nature and quantity of
sampling
• Mineral Resources at Bootu Creek (“BC”) were sampled by 91% Reverse Circulation (RC), 2%
Diamond Drill (DD) and 7% open percussion (PC) drilling on a nominal 50m x 25m spaced grid.
The 31 December 2021 BC Bootu Creek resource dataset (trimmed to remaining resource models)
comprised a total of 390 drill holes for 25,338 metres, and the Renner West dataset comprised a
total of 145 drill holes for 6384 metres.
•
• Collar locations are picked up by Mine Surveyors using MGA94 co-ordinates and by DGPS or
handheld GPS at the Renner Springs project.
• RC holes are sampled at 1 metre intervals, rotary split to produce 2-3 kg samples. Sample intervals
selected for analysis are generally limited to visible manganese mineralisation and adjacent host
rock. Diamond core is submitted for assay as half or quarter core intervals selected by geology and
intensity of mineralisation.
• All drill samples are crushed, dried and pulverised (total prep) to produce a sub sample for XRF
analysis. Mineralised diamond core is quarter sawn to obtain 1 metre or geological intervals for
XRF analysis, with half core retained for density determination and metallurgical test work.
Sampling is carried out under OM (Manganese) Ltd (“OMM”) protocols to ensure the representivity
of drill samples.
Tailings sampling in TSF1, TSF2 and TSF3 at Bootu Creek was undertaken by drilling 49 earth core
holes varying in depth from 7 to 12 metres.
•
•
Drilling Technique
• RC drilling with 4.5” drill rods and a 5.5” face sampling drill bit.
• Diamond core generally drilled using a HQ3 core barrel.
• Drilling is predominately vertical, and diamond core drilled prior to 2019 was not oriented.
• Holes range from 12 to 156 metres in depth.
•
Tailings sample holes were drilled utilised a track mounted Power Probe earth core drill.
Drill Sample Recovery
• RC drill sample recovery is visually estimated and recorded in geology drill log. Diamond core
recovery is measured and recorded.
• RC rods and the sample cyclone are cleared as frequently as required to maintain satisfactory drill
sample recovery and representivity.
• DD holes use HQ3 size triple tube core barrels to maximise sample recovery.
•
The mineralisation style and consistency of mineralised intervals are considered to preclude any
issue of sample bias due to recovery.
Tailings drill core samples were recovered from 1.2m length sample casings.
•
Logging
• RC chip and diamond drill core samples are geologically logged to the level of detail required
to support the Mineral Resource estimate. Logging records lithology, mineralogy, weathering,
mineralisation, alteration, colour and other features of the samples.
• Geotechnical information is collected from the BC operations open pits and from specifically
drilled Geotechnical diamond drill core holes.
• All diamond drill core and tailings earth core photographed and logged for geology and geotechnical
core holes are logged for geotechnical parameters.
The total length of all exploration and resource delineation drilling is logged.
•
Sub-sampling
• Diamond core assay samples are quarter sawn, oven dried, jaw crushed and fully pulverised
before splitting off an XRF assay sub-sample.
• RC samples are rotary split to produce a sample of an approximately 3 kg in weight. High volume,
high pressure air is used when RC drilling to ensure the sample return is kept as dry as possible.
• RC samples submitted for assay are oven dried, jaw crushed and fully pulverised before splitting
off an XRF assay sub-sample.
• QAQC procedures involve the use of field duplicates, certified BC standards (insertion rate of
approx. 1:130) and commercial laboratories standards.
• Appropriate industry standard sample preparation techniques and quality control procedures
(ISO4296/2) are utilised by the onsite laboratory and offsite commercial laboratories to maximise
sample representivity.
• Drill sample field duplicates are taken to ensure sampling is representative of the in-situ sample
•
•
material collected.
Sample sizes are appropriate for the grain size of the material being sampled based on the
mineralisation style, intersection thickness and percent assay ranges for the primary elements.
Tailings earth core samples were cut in half lengthways for assay, with the remaining half retained
for metallurgical test work.
27
OM HOLDINGS LIMITED | ANNUAL REPORT 2023ASX LISTING RULES 5.8.1 & 5.9.1 SUMMARY INFORMATION Criteria
Explanation
Quality of assay data
and laboratory tests
Verification of
sampling and assaying
•
The analytical techniques use a mine site laboratory XRF multi element suite, assaying for Mn, Fe,
Al2O3, SiO2, P, Pb, S, TiO2, MgO, K2O, BaO, CaO, Cu, Zn and Co3O4. LOI (loss on ignition) is assessed
by thermo-gravimetric determination technique.
• No geophysical tools were used to determine any element concentrations used in any of the
•
resource estimates.
Laboratory QAQC involves the use of internal laboratory standards using certified reference
material, blanks, splits and replicates.
• BC independently developed 6 reference standards in 2007 and 2010 for a range of grade values,
using blends of Mn, Fe and quartz material. These were sent to 10 commercial laboratories with
returned values in the +/-2% range against the expected value. The BC standards are submitted
with each assay batch and monitored to maintain an independent check on laboratory assays.
•
•
Significant drill intersections are verified by alternative company personnel, generally the Geology
Manager for OMM.
Twined holes were used in initial exploration/pre-feasibility phase but are not considered
necessary in the current mature mining phase.
• Data entry, verification and storage protocols are in place and were managed by a dedicated GIS/
Database Manager and recently by the Geology Manager.
• No adjustments of primary assay data (high grade cuts, etc.) are considered necessary.
Location of data points
• Drill collars used for Mineral Resource delineation are surveyed using the mine based DGPS survey
Data spacing and
distribution
equipment.
• All locations are picked up and quoted in MGA94 grid format.
• Mine lease topography is based on ortho-rectified aerial photography (2013) to produce a DTM
based on a 5 m x 5 m centred grid with +/- 0.5 m RL accuracy.
• Data spacing is generally based on a 50 m x 25 m drill grid within the Mineral Resource boundaries.
The data spacing and distribution is close enough to establish the degree of geological and grade
•
continuity appropriate for the Mineral Resource classification being quoted and for the Ore
Reserve estimate.
Sample support is consistent with 1 m RC composite sample length applied and utilised for Mineral
Resource estimate.
•
Orientation of data in
relation to geological
structure
•
The manganese deposits at Bootu Creek are shallow dipping (average dip 30o–40o), strata-bound
and relatively planar.
• Drill orientation is predominately vertical and any interaction with local faults or fold structures is
not considered to introduce bias to the sampling results.
Sample Security
Sample security is not considered a significant risk.
•
• Most exploration samples are processed by the mine site laboratory and results are validated
against the drill hole geology logs.
Audit or reviews
• No recent audits or reviews of sampling techniques, other than ongoing internal review, have been
conducted. The database was last reviewed by Optiro for the 31 December 2012 Mineral Resource
estimate.
• Minor infill delineation drilling conducted since that audit (within the remaining resource models)
included 5 RC holes in CFN and 30 RC holes in Masai 5.
• 6 new diamond core holes drilled in 2019 were for geotechnical assessment of the Shekuma and
CFN pits.
• 3 new diamond core holes drilled in 2019 were for metallurgical test work at the Renner West
deposit.
• 8 new diamond core holes drilled in 2020 and 2021 were for geotechnical assessment of the
Tourag, Zulu South and Masai 5 proposed pits
Section 2 Reporting of Exploration Results
Criteria
Explanation
Mineral tenement and
land tenure status
•
•
The relevant tenements for 2021 exploration are EL28041 and EL28604, collectively referred to as
the Renner Springs project.
The tenements were granted in 2010 and 2011 respectively and are 100% owned by OMM with no
security of tenure issues at the time of reporting.
Exploration done by
other parties
• Keys Resources NL were the last to explore the Renner Springs area, intersecting 9m @ 36.7%Mn
in percussion hole W38. (Ferenczi, 2001).
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023ASX LISTING RULES 5.8.1 & 5.9.1 SUMMARY INFORMATION Criteria
Geology
Explanation
•
•
•
The Renner Springs project is predominately located within the Namerinni Group in the Ashburton
Province of the Tennant Creek Inlier. The favourable manganese bearing horizon is hosted
principally by the Shillinglaw Formation.
The Renner Springs manganese horizons are generally shallow dipping and present with a breccia/
conglomerate texture in low outcrops.
The Bootu Creek manganese deposits are strata-bound, located at the contact between the
underlying dolomite-siltstone Attack Creek Formation and the overlying ridge forming sandstone
of the Bootu Formations in the Tomkinson Group, within the Ashburton Province of the Palaeozoic.
Drill hole Information
• 3 diamond core holes were drilled at the Renner West deposit and 6 RC holes were drilled at the
recently discovered Carruthers North prospect in 2019.
• Refer to the accompanying table of the ASX announcement for details of sample locations and
assay results.
Data aggregation
methods
• Reported assays are length weighted with no top-cuts applied.
• No metal equivalents are used for reporting exploration results.
Relationship between
mineralisation width
and intercept length
Diagrams
•
•
•
•
•
The 3 diamond drill program was undertaken to provide core for metallurgical test work at the
Renner West Mineral Resource.
The 6 RC drill program at Carruthers North prospect was a first pass test of a low laying manganese
outcrop, discovered while ground checking a gradient array IP anomaly.
The RC intersections are quoted as drill intersection lengths, as the dip of the mineralisation is yet
the be confirmed.
The Renner West Mineral Resource is located at R6 in figure below.
The Carruthers North prospect referred in this announcement is located midway between
prospects R8 and R10 shown in the figure below.
Balanced reporting
• All results are reported when publishing exploration reports.
Further work
•
Follow up RC drilling is planned for the Carruthers North and Renner Central prospects in 2024.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023ASX LISTING RULES 5.8.1 & 5.9.1 SUMMARY INFORMATION Section 3 Estimation and Reporting of Mineral Resources
Criteria
Explanation
Database integrity
Location data was imported from DGPS export files.
•
• Assay data was imported from the original laboratory issued csv files.
• All exploration drill data was moved to an Access database in 2017 and all new drill hole data is
uploaded to that database.
• Geology logs are validated for errors on import, locations checked, and assay data quality is
ensured by use of lab and field standards. Further internal validation for duplication, overlaps, etc
is carried out using Surpac software prior to any resource estimation.
Site visits
Geological
Interpretation
•
•
The Mineral Resource is located within an active mine camp and is visited regularly by OMM
Competent Persons.
There is a high degree of confidence in the geological interpretation of the Bootu Creek manganese
deposits gained through extensive close spaced drill testing, a relatively planar strata-bound
geological setting and over 15 years of active mining at this mature mining operation.
• Ore mineralogy was determined by XRD analysis and optical petrology on selected drill core, RC
chip and mineral product (gravity concentrate) samples.
The geological controls at BC are well understood from ongoing mining activity and form the basis
for the resource interpretations.
Factors affecting continuity of grade and geology include local high and low angle faulting, local
internal and adjacent high Fe associated with faulting, and the intensity and depth of supergene
alteration from weathering.
The geological interpretation is refined on an ongoing basis following the review of close spaced
grade control sampling and in pit observation and mapping of second order fault structures not
modelled in the original broader spaced resource delineation drilling.
This figure is inserted for reference to geological setting and deposit locations at Bootu Creek.
•
•
•
•
•
The Bootu Creek manganese resource models have a combined strike length of 16km, with
individual models ranging from 0.7km to 2.9km
• Bootu Creek resource models are generally limited in vertical depth by economic constraints
(imposed by strip ratios and cost of mining), by faulting or by the depth of weathering and
supergene alteration, rather than a depth termination of the mineralisation.
Individual resource model depth extents range from 50m to 120m below surface. All mining is by
open pit.
•
• Bootu Creek resource model widths (true width) range from the minimum width of 3m to a
•
maximum of around 15m.
The Renner West manganese deposit extends over a strike length of 450m and to a depth of
around 25m below surface.
Dimensions
30
OM HOLDINGS LIMITED | ANNUAL REPORT 2023ASX LISTING RULES 5.8.1 & 5.9.1 SUMMARY INFORMATION
Criteria
Explanation
Estimation and
modelling techniques
•
Estimation and modelling undertaken by independent resource consultants Optiro Pty Ltd, and
since updated by OMM technical staff.
•
• Resource models are digitised and wire-framed from interpreted geological and assay drill
cross sections prepared by OMM. These wireframes are used to select resource intersections
and composite data is extracted for Mn, Fe, SiO2, Al2O3, BaO and P based on one metre sample
increments.
‘Supervisor’ geostatistical software was used for continuity analysis to determine variograms for
grade estimation. Optiro found that the 10% Mn population generated more robust variograms
with lower nugget effects that were applied to the resource composite data during estimation.
The nugget effect from variography was found to represent only 20-30% of the total variability,
suggesting a low inherent random behaviour for the manganese mineralisation and no grade
capping is warranted.
•
• Block models are estimated using Ordinary Kriging (OK), using Surpac resource estimation
software, and coded with attributes for material type, resource classification, model domain and
for OMM survey pit pickups.
•
• Block Model Parent Cells are 25m (Y) by 10m (X) by 5m (Z) and compare favourably with maximum
drill spacing of 50m x 25m or 40m x 20m and with along strike search radius varying from 130m in
the shorter or faulted models through to 290m for the highly continuous Chugga-Gogo.
The number of samples is set at a minimum of 15 and a maximum of 32 for passes 1 & 2. The pass
3 minimum was set to 2 samples to fill model extents.
Search ranges varied from 130 m up to 290 m in deposits of up to 2.9 km strike length. The search
ellipsoids are flattened disc shapes in the plane of the mineralisation with varying anisotropic
ratios designed to model shallowly plunging manganese trends within the domains.
•
• Geological interpretation prepared by OMM has been used to construct digital wireframes and
control assay extraction from the database but are not otherwise used to control the resource
estimate.
The only assumed correlation between variables is that used for the density regression calculated
against manganese grade. There is a noted inverse relationship between manganese vs SiO2 or
Al2O3. There is a variable relationship between manganese and iron and correlations between
other elements were poor.
•
• No selective mining units were assumed in the estimates.
• Graphical 3D validation of block grades versus composite samples, used to compare modelled
grade trends against the spatial distribution of the samples, demonstrated that estimated low
and high grades were consistent with the composite samples. Density was also checked to confirm
interpolated block values honour the regression formulas.
• Validation swathe plots by Optiro show that the block model estimated grades honoured local
•
grades. All volumetric checks are within 1% of wireframes.
The significant elements specific to product quality are assayed and modelled with the only
potential issue being high Fe content in product, which is managed in the mine plan by local grade
control.
• Mineral Resource estimates are depleted for mining up to 31 December 2021 and reported above
a cut-off grade of 15% Mn.
Moisture
• All tonnage is estimated on a dry tonne’s basis.
Cut-off parameters
Mining factors or
assumptions
Metallurgical factors
and assumptions
•
•
•
•
•
The existing 15% Mn cut-off grade had been affirmed after several years of processing Bootu
Creek ore for target product grades of plus 33% Mn.
Manganese product derived from the DMS (gravity) plant is not linear in relation to head grade
and product yield and/or product grade decreases rapidly below the 15% Mn cut-off grade.
Since 2020, low grade mineralisation (10%-15% Mn) defined by in pit grade control has been mined
outside of the 15% Mineral Resource models.
It has been possible to process this lower grade material by reducing the target product grade to
around 28% Mn.
The Mineral Resource estimates were optimised by OMM technical staff utilising Whittle mining
software to limit economic open pit extents based on long term revenue, mining, processing, and
logistic parameters set by OMM.
• All mining is by open pit mining methods.
• Parameters for determining economic extraction are based on data derived from the current
mining and processing operations at Bootu Creek.
• Metallurgical assumptions are based on test work conducted on 93 composites selected from 79
diamond holes drilled into all deposits included in Ore Reserves. The test work consists largely of
individual particle pyknometry (IPP) on lump ore and Heavy Liquid Separation (HLS) on fines.
• More recent HLS and screened assay analysis, washability and process simulation test work
(conducted by Nagrom) on earth core sampling of the Tailing Storage Facilities TSF 1, TSF2 and TSF
3 has been utilised to justify the newly constructed Ultra Fines Plant (UFP).
The UFP Rejects Mineral Resource is based on surveyed stockpiles and the same metallurgical test
work as used to assess the UFP Tailings.
•
• Plant factors including product grade, yield and recovery are reviewed annually.
• Product yield assumptions for resource optimisation are now based on statistical analysis of the
resource delineation drill sample grade distribution, on a pit by pit basis, with due attention to the
extent of weathering.
• Average grade is no longer considered a reliable indicator of product yield.
31
OM HOLDINGS LIMITED | ANNUAL REPORT 2023ASX LISTING RULES 5.8.1 & 5.9.1 SUMMARY INFORMATION Criteria
Explanation
Environmental factors
or assumptions
Bulk Density
Classification
• Bootu Creek was an operating mine site and processing plant up to the end of 2021, with Mine
Management Plans submitted and approved for waste rock and tailings storage by the Northern
Territory Department of Industry, Tourism and Trade.
• Bootu Creek is currently operating on Care and Maintenance basis and continuing with the
rehabilitation of mine waste dump, open pit surrounds and associated infrastructure.
• No significant sulphides are present in the ore or mine-waste.
•
• Current bulk density regression formulae are based on 366 waxed (or waxed equivalent) HQ3 core
samples selected from 52 metallurgical composites distributed through all deposits included in
the 31 December 2020 Ore Reserve.
The bulk density measurements were determined in 2009 by Amdel (Perth) using the wet and dry
methodology. Six individual density regressions were determined for Chugga/Gogo, Shekuma,
Xhosa, Masai/Tourag, Yaka and Zulu deposits. Renner West, Foldnose and Zulu South use the Yaka
(most conservative) regression option.
•
• Measured Mineral Resource – this classification is restricted to well drilled resource blocks located
within 15m (vertical) of a mined pit floor, reflecting a high level of geological and grade confidence.
No Measured Mineral Resources are quoted in the 31 December 2021 Mineral Resource.
Indicated Mineral Resource – classified based on established grade and geological continuity
defined by the tabular nature of the Bootu Creek mineralised zones, the regular drill spacing of
50m x 25m or better, estimation parameters such as kriging efficiency and the demonstrated
mining history in most of the deposits.
The Mineral Resource estimate appropriately reflects the view of the Competent Person.
•
• All OMM Mineral Resources are economically constrained on an annual basis by optimised pit
shells using updated OMM cost, revenue, and physical parameters (see Mining Factors and
Assumptions).
Audits and reviews
•
Independent resource consultant Optiro Pty Ltd conducted a Client Review of wireframes, block
models, classification criteria, volumetric comparison, composite versus block model grades and
XYZ plots on the Mineral Resource estimate for 31 December 2013.
• Only a limited amount of additional resource delineation drilling has occurred since 2013, with 23
•
•
Discussion of relative
accuracy/confidence
RC infill holes drilled in 2017 and 2018 and a further 27 RC infill holes in 2020 and 2021.
The more significant changes applied in recent Mineral Resource estimation process account
Mineral Resource depletion by mining and/or pit backfill, updated pit optimisation parameters,
product yield estimation, and to update geological interpretation based on minor faults observed
during mining activity since 2013.
The relative accuracy of the Mineral Resource estimate is reflected in the reporting of the Mineral
Resource as per the guidelines of the 2012 JORC Code.
This statement relates to the global estimates of tonnes and grades.
•
• Annual reconciliation compares mine production with pre-mining Mineral Resource estimates,
and to update mining factors and assumptions.
Section 4 Estimation and Reporting of Ore Reserves
Criteria
Explanation
No Ore Reserve
quoted for 31
December 2023
•
•
The Bootu Creek Operation was placed under Care and Maintenance following suspension of
mining on 13 December 2021 and processing of ROM ore was completed on 7 January 2022.
There is no current Mine Plan for the Bootu Creek Operation.
32
OM HOLDINGS LIMITED | ANNUAL REPORT 2023ASX LISTING RULES 5.8.1 & 5.9.1 SUMMARY INFORMATION
Table 2.
Drilling Results - Renner West (using a cut-off grade of 15% Mn)
Hole ID
Easting
mE
Northing
mN
RL (m)
approx.
Azimuth
& Dip
RSDD001
358071
7971873
279
-90
Hole
Depth
(m)
26.9
RSDD002
358022
7971998
278
-90
27.6
RSDD003
358008
7972120
275.5
-90
17.1
Interval
From
(m)
Interval
To
(m)
Interval
Width
(m)
2.90
4.00
10.00
20.40
4.60
10.20
15.50
18.10
0.00
2.60
6.80
12.60
3.30
8.80
11.00
21.20
7.30
11.20
15.60
21.30
2.20
6.80
11.10
13.40
0.40
4.80
1.00
0.80
2.70
1.00
0.10
3.20
2.20
4.20
4.30
0.80
Table 2.
Drilling Results - Carruthers North Prospect (using a cut-off grade of 15% Mn)
Hole ID
Easting
mE
Northing
mN
RL (m)
approx.
Azimuth
& Dip
Hole
Depth
(m)
Interval
From
(m)
Interval
To
(m)
Interval
Width
(m)
RSRC0321
366096
7965923
275
-90
RSRC0322
366112
7965924
RSRC0323
366089
7965979
RSRC0324
366106
7965983
RSRC0325
366083
7966016
RSRC0326
366120
7965955
275
275
275
275
275
-90
-90
-90
-90
-90
nsv – no significant value
61
56
67
55
61
49
0
15
38
0
14
6
7
16
40
5
15
7
7
1
2
5
1
1
Mn
%
22.39
27.63
30.15
20.75
28.20
42.10
49.17
33.65
19.79
26.81
33.98
39.54
Mn
%
27.67
25.16
37.41
nsv
24.22
18.75
nsv
26.84
Fe
%
1.74
4.76
1.51
20.88
11.88
2.00
0.76
3.11
4.18
4.81
3.60
0.96
Fe
%
5.5
21.4
5.5
7.4
9.1
13.4
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023ASX LISTING RULES 5.8.1 & 5.9.1 SUMMARY INFORMATION
SUSTAINABILITY STATEMENT
CONTENTS
ABOUT THIS REPORT
IDENTIFYING AND PRIORITISING MATERIALITY IN OUR OPERATIONS
THE METHODOLOGY
MATERIALITY MATRIX
SUSTAINABLE VALUE CREATION
SUSTAINABILITY GOVERNANCE
SUSTAINABLE GOALS LEAD THE WAY
SUSTAINABLE ECONOMIC GROWTH
DEFINING TOMORROW THROUGH INNOVATIVE SOLUTIONS
TAX PRACTICES
ENTERING A GOLDEN AGE OF COMMODITIES
RESPONSIBLE SUPPLY CHAIN
ETHICS AND COMPLIANCE
GRIEVANCE MECHANISMS
MANAGING SUSTAINABILITY RISK
ENVIRONMENT
ENVIRONMENTAL POLICY
ENVIRONMENTAL MANAGEMENT SYSTEM
USING LIFECYCLE ANALYSIS TO ADDRESS ENVIRONMENTAL CONCERNS
ADDRESSING CLIMATE CHANGE
ENERGY MANAGEMENT AND CONSUMPTION
EMISSIONS MANAGEMENT
BIODIVERSITY AND CONSERVATION
WASTE MANAGEMENT
TOWARDS ZERO WASTE AND CIRCULARITY
WATER AND EFFLUENTS MANAGEMENT
LAND REMEDIATION, CONTAMINATION AND DEGRADATION
ENVIRONMENTAL COMPLIANCE
OUR PEOPLE
EMPLOYEE DEMOGRAPHICS
UNITY IN DIVERSITY
HONOURING CONTRIBUTIONS WITH EQUITABLE AND FAIR REMUNERATION
UNLOCKING POTENTIAL THROUGH TALENT ENRICHMENT
ENGAGING EMPLOYEES
HEALTH AND SAFETY
SOCIETY
COMMUNITY RELATIONS
SPONSORSHIP, DONATION AND COMMUNITY GIVING
HUMAN RIGHTS
OPERATING RESPONSIBLY
PRODUCT SAFETY
PRODUCT QUALITY
CYBERSECURITY AND DATA PRIVACY
GROUP SUSTAINABILITY PERFORMANCE DATA
36
38
38
41
42
44
44
46
46
48
48
49
50
51
52
54
54
55
55
55
57
58
59
61
62
63
64
64
64
65
67
68
69
70
70
74
74
75
76
77
77
77
78
79
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT ABOUT THIS REPORT
Scope & Boundary
Welcome to OMH’s Sustainability Statement 2023. This annual Sustainability Statement (“Statement”) outlines a consolidation of
OMH’s Economic, Environmental, Social and Governance (“EESG”) information for the financial year 2023 (“FY2023”) from 1 January
to 31 December 2023. It is a progression for the Company in its corporate reporting and strengthening of its reporting transparency.
Unless stated otherwise, the statement covers major subsidiaries: OM (Manganese) Ltd. (“OMM”) – Australia, OM Materials (S) Pte.
Ltd. (“OMS”) – Singapore and OM Materials (Sarawak) Sdn. Bhd. (“OM Sarawak”) - Malaysia. Please refer to the Corporate Structure
section in this Annual Report for more details of OMH’s subsidiaries and primary business streams.
OM Materials (S) Pte. Ltd. (“OMS”) -
Singapore
OMS primarily manages the logistics,
marketing, product flow and distribution
of OMH’s products. There is a focus on
Supply Chain Management and Product
Quality and Safety.
OM Materials (Sarawak) Sdn. Bhd.
(“OM Sarawak”) – Malaysia
OM Sarawak is OMH’s flagship
ferrosilicon and manganese alloy
smelter in Malaysia. Performance data
for environmental and social matters
will primarily come from this entity.
OM (Manganese) Ltd. (“OMM”) -
Australia
OMM owns the Bootu Creek manganese
mine. There is a particular focus on this
entity when managing and addressing
Land Remediation, Contamination or
Degradation, as well as Community
Development with a focus on the Rights
of Indigenous Peoples. The entity
ceased mining operations in December
2021, and targets to restart the UFP in
Q4 2024.
Reporting Framework
OMH aligned this Statement with the Bursa Malaysia Enhanced Sustainability Reporting Guide and the Global Reporting Initiative
(“GRI”) Universal Standards (2021). While preparing this Statement, the Company has also considered other sustainability guidelines
and principles, including the United Nations Sustainable Development Goals (“UNSDGs”), the Taskforce on Climate-related Financial
Disclosures (“TCFD”), the Taskforce on Nature-related Financial Disclosures (“TNFD”) and feedback from diverse ESG rating agencies’
indexes.
As OMH is listed on the Bursa Malaysia Securities Berhad and ASX, we have incorporated the respective requirements from these
securities exchanges. Unless specified otherwise, the Corporate Governance statement delineates governance practices for FY2023,
aligning with the ASX Corporate Governance Council recommendations.
References to ‘OMH’, ‘the Group’ and ‘the Company’ refer to OMH and its operating entities. References to ‘the Plant’ refer to the
ferroalloy smelting plant in Sarawak, Malaysia, owned and operated by OM Sarawak.
The Sustainability Management Committee thoroughly reviewed the content of this Statement to ensure its accuracy and integrity
before Board approval.
External Assurance
OMH engaged BSI Services Malaysia to provide independent verification of the Greenhouse Gas (“GHG”) emissions calculations in
FY2023. The verification was carried out in accordance with ISO 14064-1:2018 and the principles of ISO 14065:2013. The verification
was conducted at a reasonable level of assurance at a materiality of 10%. The GHG inventory report was prepared in accordance
with the requirements of ISO 14064-1:2018 Greenhouse Gases, the Greenhouse Gas Protocol Corporate Accounting and Reporting
Standard, and the Greenhouse Gas Protocol Corporate Value Chain (Scope 3).
Feedback
OMH welcomes stakeholder support and feedback for improvements as it progresses on its sustainability journey. Please direct queries
and commitments to investor.relations@ommaterials.com.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Stakeholder Engagement
OMH values its stakeholders, including those affected by operations and those influencing its decisions. Recognising their importance
to the Group’s long-term success, we have continuously engaged these stakeholders, keeping them informed and gathering feedback
on their priorities. Understanding their concerns and expectations helps us prioritise effectively and develop strategies that create
value for them.
As part of our materiality assessment, we conducted a stakeholder identification and prioritisation exercise to identify OMH’s material
Economic, Environmental, and Social (“EES”) topics. This assessment engaged both internal and external stakeholders. The table below
summarises OMH’s engagement.
Legend for engagement frequency
Annually
Semi-annually
Quarterly
Ongoing
As needed
Key
Stakeholders
Methods of Engagement &
Frequency of Engagement
Areas of Interest
Link to Material Matter
Board of
Directors and
Employees
Board meetings
Meetings and briefings
Employee performance
appraisals
Training and development
Team building and activities
Townhall sessions
• Group’s performance, direction, and
strategy
• Corporate governance
• Occupational health and safety
• Training and career advancement
• Workplace and accommodation
environment
• Climate-related risks and sustainability
• Economic performance
• Occupational health and safety
• Talent management
• Human rights
• Critical incident risk management
• Climate change and energy
Government
and Regulators
Regular compliance report
Ad-hoc surveys and reports
• Compliance with laws and regulations
• Economic impact
• Regulatory compliance
• Economic performance
• Business ethics, values and governance
• Waste management
• Water and effluents
• Pollution and non-GHG emissions
Customers
Regular communication via
telephone and emails
Ad-hoc visits
• Maintaining customer relationships
• Potential collaborations
• Climate change and sustainability
• Product quality and safety
• Climate change and energy
• Data privacy and security
Supplier surveys
Regular communications via
telephone and emails
Ad-hoc visits
• Maintaining supplier relationships
• Potential collaborations
• Quality of products procured
• Upholding fundamental human rights
• Supply chain management
• Human rights
Suppliers
Financial
Communities
Investors /
Investment
Community
Financial statements
ASX and Bursa Malaysia
announcements
Compliance reporting
Annual reports
Company presentations
Annual General Meetings
Annual reports
Company presentations
ASX and Bursa Malaysia
announcements
Analyst and retail briefings
• Business and financial performance
• Future prospects and plans
• Environmental, Social and Governance
(“ESG”) and sustainability matters
• Business and financial performance
• Future prospects and plans
• ESG and sustainability matters
• Economic performance
• Climate change and energy
• Waste management
• Water and effluents
• Land remediation, contamination and
degradation
• Economic performance
• Climate change and energy
• Waste management
• Water and effluents
• Land remediation, contamination and
degradation
• Pollution and non-GHG emissions
• Ecological impacts
• Human rights
• Community development
• Human rights
• Waste management
• Water and effluents
• Pollution and non-GHG emissions
Local
Communities
Regular community projects
Annual back to school
programmes
Sponsorships and donations
• Community development
• Employment opportunities
• Environmental preservation
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JV Partners
Regular communications via
• Maintaining partnerships
• Economic performance
telephone and emails
ASX and Bursa Malaysia
announcements
Internal Board meetings
Joint venture reporting and
meetings
OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT
IDENTIFYING AND PRIORITISING MATERIALITY IN OUR OPERATIONS
The OMH materiality study thoroughly explores critical factors influencing organisational impact. Analysing material aspects steers
the Group towards well-informed decision-making and responsible resource allocation, fostering resilience for the future. This
approach ensures that our customised sustainability initiatives effectively address pressing concerns, aligning our efforts with the
pivotal aspects of our business and societal impact.
THE METHODOLOGY
During the last quarter of FY2023, OMH engaged an external consultant to conduct an updated materiality analysis, ensuring the
confidentiality of respondents. The previous analysis was conducted in 2021. A survey was administered to stakeholders, soliciting
their evaluations on the significance of 18 sustainability areas. Respondents used a 5-point Likert Symmetric Scale, ranging from
“very unimportant” (1) to “very important” (5), with a midpoint of (3) denoting neutrality. The Board and Senior Management Team
actively participated, contributing valuable insights to OMH’s comprehensive understanding.
Stakeholder Groups Involved in OMH Materiality Study 2023
Customers
Financial
Communities
Suppliers
Government and
Regulators
Employees
Investors /
Investment
Community
JV Partners
The Group ensures its sustainability practices contribute to local stakeholders and broader goals. The material topics are aligned
with the SASB Standards for the Metals & Mining industry. The following table maps each material matter against the corresponding
GRI topics and UNSDGs.
Description of Materiality Study Topics
Topic
What We Do
Corresponding GRI
Topics & UNSDGs
Sections of the
Report
Economic
Performance
Our Sarawak flagship smelter produces vital ferrosilicon
and manganese alloys essential for steelmaking and
industrial applications, driving the transition to a low-
carbon economy and significantly contributing to the local
economy.
• Economic Performance
• Tax
Regulatory
Compliance
We ensure compliance through regular audits, including
annual Silica Fume Compliance and Special Waste
Management audits. Our operations undergo frequent
external audits and compliance checks to maintain
stringent oversight, as required by our ISO certifications.
We received no reports of non-compliance with operations,
ethical conduct, labour standards, or environmental issues
during the year.
• Anti-Corruption
• Anti-Competitive Behaviour
• Tax
Supply Chain
Management
We have integrated our sustainability supply chain approach
into our commitment to ethical, social, and environmental
principles. This process includes implementing measures
such as a Supplier Assessment Questionnaire (“SAQ”),
incorporating ISO 14001 and ISO 45001 requirements
into the Supplier Code of Conduct, requiring suppliers to
declare adherence to our Supplier Code of Conduct, and
extending relevant policies such as our Anti-Bribery and
Corruption Policy to all suppliers.
• Indirect Economic Impacts
• Procurement Practices
• Supplier Environmental
Assessment
• Supplier Social Assessment
• Defining
Tomorrow
Through
Innovative
Solutions
• Entering a
Golden Age of
Commodities
• Defining
Tomorrow
Through
Innovative
Solutions
• Ethics and
Compliance
• Environmental
Compliance
• Our People
• Responsible
Supply Chain
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Topic
What We Do
Business
Ethics,
Values &
Governance
OMH has implemented a comprehensive Code of Conduct
that extends to all operations, including business partners,
supplemented by supporting documents such as the Anti-
Bribery and Anti-Corruption Policy, Employee Handbook,
and Environmental Management Systems.
Corresponding GRI
Topics & UNSDGs
• Anti-Corruption
• Anti-Competitive Behaviour
• Public Policy
Sections of the
Report
• Ethics and
Compliance
Critical
Incident Risk
Management
We conduct materiality assessments to manage risks,
exercise precaution, and align strategy. The Company has
formalised its approach to ESG risk in its Policy for Risk
Management. In response to the climate crisis, we have
conducted comprehensive climate scenario analysis and
mapped climate-related risks and potential impacts.
• Material Topics
• Economic Performance
• Energy
• Emissions
Climate
Change &
Energy
Pollution &
Non-GHG
Emissions
Our operations demand a consistent electricity supply,
especially for the high-temperature smelting processes
crucial in transforming raw materials into ferroalloys.
Through our climate change response strategy, we aim
to expand renewable energy usage, reduce operational
emissions, and enhance energy efficiency across our
manufacturing processes.
Initiating ISO 50001:2018 certification in 2024 will further
improve energy performance and contribute to our
decarbonisation journey.
OM Sarawak minimises non-greenhouse gas emissions by
optimising production processes and employing pollution
control technologies. We conduct regular Ambient Air
Quality Monitoring and equip furnaces with Air Pollution
Control Systems (APCS). In FY2023, we upgraded one
tapping deduster, which increased its capacity to reduce air
emissions and pollution. We plan to optimise the system
further by upgrading six more.
• Identifying and
Prioritising
Materiality
in Our
Operations
• Managing
Sustainability
Risk
• Addressing
Climate
Change
• Energy
Management
and
Consumption
• Emissions
• Emissions
Management
Ecological
Impacts
OMH collaborated with the International Manganese
Institute (“IMnI”) to conduct a thorough ‘cradle-to-gate’
Life Cycle Analysis (“LCA”) focusing on manganese ore
and alloys, providing insight into environmental impact. In
FY2023, we expanded the LCA scope to include ferrosilicon.
• Biodiversity
We have partnered with SFC to restore 10 hectares of
degraded forest in Similajau National Park.
Waste
Management
We uphold a robust waste management procedure
aligned with
ISO 14001:2015, emphasising efficiency
and incorporating the principles of 3R (“Reduce, Reuse,
Recycle”). We follow regulated scheduled management
practices outlined in the Environmental Quality (Scheduled
Wastes) Regulations 2005, guided by our Environmental
Management System.
• Waste
• Using Lifecycle
Analysis to
Address
Environmental
Concerns
• Biodiversity
and
Conservation
• Waste
Management
Resource Use OM Sarawak recycles and reuses most of its by-products
(slags, dust and fines) as raw materials for production to
reduce waste. We are exploring repurposing SiMn slag as a
substitute for natural aggregates in concrete.
• Materials
• Towards Zero
Waste and
Circularity
Water &
Effluents
OM Sarawak’s municipal water supply is sourced away from
sensitive or protected water bodies, while cooling water for
the furnace system operates within a closed-loop system,
treated and recycled with minimal loss from vaporisation
in the cooling tower. Effluent discharge consistently
meets permissible limits set by the Environmental Quality
(Industrial Effluent) Regulations, 2009, throughout FY2023.
• Water and Effluents
• Water and
Effluents
Management
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Topic
What We Do
Land
Remediation,
Contamination
& Degradation
We have set precise objectives, strategies, and targets for
effective soil and land management. OMM undertakes the
rehabilitation of infrastructure areas before closure, with
plans to remediate tracks, roads, and exploration areas
that are no longer in use.
Corresponding GRI
Topics & UNSDGs
Sections of the
Report
• Biodiversity
• Land
Community
Development
We adhere to a Community Relations Policy that serves as a
framework for our engagements with society.
• Local Communities
In 2023, we exemplified our commitment to social
responsibility by making a total of RM800,000 in donations.
Remediation,
Contamination
and
Degradation
• Community
Relations
• Sponsorship,
Donation and
Community
Giving
Human
Rights
The Company and the Group’s operations follows local
and international human rights codes. The Group has
formalised its Human Rights Policy, which covers its
commitment to protecting the rights of employees,
partners, local communities, and all those affected by
OMH’s operations.
• Labour Management
• Human Rights
Relations
• Diversity and Equal
Opportunity
• Non-Discrimination
• Freedom of Association
and Collective Bargaining
• Child Labour
• Forced or Compulsory
Labour
• Security Practices
• Rights of Indigenous
Peoples
Talent
Management
OMH believes in fair remuneration and provides attractive
benefits to its employees.
• Market Presence
• Training and Education
We also provide customised training to equip every
employee with the necessary skills and opportunities for
job performance and career advancement. Additionally, we
collaborate with UNIMAS on a Certificate in Manufacturing
Technology
talent
development in the local community.
(Smelting) programme,
foster
to
• Honouring
Contributions
With Equitable
and Fair
Remuneration
• Unlocking
Potential
Through
Talent
Enrichment
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Topic
What We Do
Occupational
Health &
Safety
We ensure compliance in every country where we operate.
For example, in the Northern Territory of Australia, we
adhere to the Work Health and Safety (National Uniform
Legislation) Act 2011, while in Malaysia, we comply with
requirements set by the Department of Occupational
Safety and Health (“DOSH”).
Our operations undergo regular external audits and
compliance checks to maintain stringent oversight. OM
Sarawak obtained ISO 45001:2018 certification in 2023.
Corresponding GRI
Topics & UNSDGs
Sections of the
Report
• Occupational Health and
• Health and
Safety
Safety
Product
Quality &
Safety
We subject our products to rigorous testing following the
“United Nations Recommendations on the Transport of
Dangerous Goods, Manual of Tests and Criteria Part III –
33.4.1.4”. Additionally, as part of our quality control system,
we have established quality and inspection procedures for
raw materials and finished products.
• Customer Health and
Safety
• Marketing and Labelling
• Product Safety
• Product
Quality
Data
Privacy &
Cybersecurity
We enforce Data Protection and Privacy practices
throughout the Group. Additionally, OMH maintains a
robust cybersecurity infrastructure, bolstering its digital
defences against cyber threats.
• Customer Privacy
• Cybersecurity
and Data
Privacy
MATERIALITY MATRIX
The results of our FY2023 materiality assessment showed a similar trend as the 2021 assessment. Five new material topics were
identified, namely, Pollution & Non-GHG Emissions, Ecological Impacts, Resource Use, Data Privacy & Cybersecurity, and Critical
Incident Risk Management. Regulatory Compliance, Talent Management, and Product Quality & Safety increased in importance, while
Land Remediation, Contamination & Degradation, Waste Management, and Water & Effluents have decreased in importance.
Legend:
Economic
Environmental
Social
l
s
r
e
d
o
h
e
k
a
t
S
o
t
e
c
n
a
t
r
o
p
m
I
Regulatory Compliance
Occupational Health &
Safety
Critical Incident Risk
Management
Economic
Performance
Water & Effluents
Talent Management
Climate Change & Energy
Pollution & Non-GHG
Emissions
Product Quality & Safety
Business Ethics, Values &
Governance
Community
Development
Ecological Impacts
Data Privacy &
Cybersecurity
Waste Management
Human Rights
Supply Chain
Management
Land Remediation,
Contamination &
Degradation
Resource Use
Relevance to OMH
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT
SUSTAINABLE VALUE CREATION
Our value creation model illustrates how OMH harnesses valuable resource inputs, or “capitals”, to deliver long-term value for
customers, investors, employees, society and the Company. We aligned the capital categories with the International Integrated Reporting
Framework. All capitals are interrelated, and business activities often require a mix of capital. We aim to allocate our resources based
on these capitals effectively by maximising their potential value and minimising their negative impacts as part of our continuous drive
to improve. The created shared value strengthens the capitals and becomes a source of further value creation. By repeating this cycle,
we strive to achieve sustainable growth.
INPUTS
FINANCIAL
CAPITAL
Appropriate cash, equity and debt
levels for organic growth
• Share Capital: US$33.0m
• Equity: US$414.6m
• Debt: US$265.5m
MANUFACTURED
CAPITAL
OMH, through OM Sarawak, owns and
operates a ferroalloy and silicon metal
smelter complex in Sarawak, Malaysia,
the core asset of the Group.
• Property, Plant & Equipment (PPE):
US$426.1m
• Capital Expenditures: US$21.3m
NATURAL
CAPITAL
INTELLECTUAL
CAPITAL
HUMAN
CAPITAL
• Manganese Ore: 493,083 t
• Mill Scale: 43,030 t
• Quartz: 379,937 t
• Reductants: 283,577 t
• Electrode Paste: 12,482 t
• Electricity: 8.96 million GJ
• Diesel: 78.7 thousand GJ
• Water withdrawal: 1,668 ML
OMH possesses more than two
decades of know-how in the
manganese ore and ferroalloy
industry. We strive for continuous
innovation and improvements
in line with our global values, via
internal controls and processes,
consistent and timely maintenance,
and implementation of accredited
management systems.
Our employees are fundamental to
our success. We review our training
and development programmes to
ensure that they deliver business
value and opportunities for our
2,372 employees.
•
Investment in training (incl.
subsidies): US$142k
SOCIAL &
RELATIONSHIP
CAPITAL
• Diversified customer base
• Over 400 suppliers engaged
• Community engagement
• Collaboration with local
•
universities
Industry and government
participation
Units
t: tonne
kt: kilotonne
GJ: gigajoule
ML: megalitre
OUR PURPOSE
Our purpose is to create sustainable value
for our shareholders and stakeholders
through developing and acquiring cost
competitive resource assets, managing
them in a safe and optimised manner, and
realising their full potential by marketing
effectively
b ilit y
a
s t a i n
u
S
A
cc
Inte
o
u
nta
grity &
bility
C
o
l
l
a
b
o
r
a
t
i
o
n
OUR
VALUES
&
e
r
a
C
t
c
e
p
s
e
R
E
In
ntre
n
o
v
pre
atio
n
e
u
n &
rial
g
a f e t y &
e i n
W e ll- B
S
STRATEGIC OBJECTIVES
Strive to deliver stable margins
Grow as a sustainable ferroalloy producer
to the world’s steelmakers
Continue to optimise the capital structure
by balancing total debt and sustainable
dividends
Strive to achieve highest purity grade for
silicon metal to diversify into the polysilicon
industry
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT
OUTPUTS
OUTCOMES
DIRECT ECONOMIC VALUE CREATED & DISTRIBUTED TO STAKEHOLDERS
Revenue: US$589.2m
Economic Value Distributed:
• Operating Costs (excl. employee wages and benefits): US$516.7m
• Employee wages and benefits: US$41.0m
• Payments to providers of capital: US$34.7m
• Taxes paid: US$6.0m
• Donations to and sponsor of local activities: US$180k
Contributed RM70 million per month to Sarawak economy in FY2023 via purchases of raw materials, goods & services
PRODUCTION
Ferrosilicon: 139,529 t
Manganese alloys: 294,432 t
SALES
1,909,869 t of ores and alloys traded globally
EMISSIONS & WASTE
• GHG Emissions: 1,759.23 kt CO2e
• Non-GHG Emissions: 760.7 kt
• Scheduled Waste generated: 174.6 kt
• Solid Waste generated: 0.31 kt
• Scheduled Waste reused: 110 kt
• Water discharge: 20.14 ML
SUSTAINABLE OPERATIONS
• Smelter complex powered predominantly by hydropower
• Continuous optimisation of smelter processes resulting in less than
1% of unscheduled downtime in FY2023 over total operational hours
SUSTAINABLE OFFERING
• OM Sarawak achieved ISO 14001 (Environmental Management
System) certification in FY2023
• Completed upgrading of first tapping deduster in FY2023 to reduce
air emissions and pollution
• 800 trees planted and RM74,500 contributed to the local community
as part of the Rewilding Project
RELIABLE PARTNER
OMH continues to retain long-term contracts and strong relationships with stakeholders as proof of our commitment to upholding high standards
of service and conducting continuous improvements.
A SAFE WORK ENVIRONMENT WITH GOOD OPPORTUNITIES
Opportunities for competence and career development for employees
• Average training hours per employee: 74.3 hr
A healthy and safe work environment for OMH’s employees and contractors with zero fatalities
• LTIR (employees & workers who are not employees): 3.79 per million manhours
• OM Sarawak achieved ISO 45001 (Occupational Health & Safety Management System) certification in FY2023
SUPPLY CHAIN
• Supplies manganese ore to China
• Supplies ferroalloys to over 10 countries, predominantly Japan,
South Korea, Taiwan, USA and the EU
RESPONSIBLE PARTNER
Creation of local employment through own operations and local
sourcing
• Local employment: >1,400
• Local suppliers engaged: 92.3%
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT SUSTAINABILITY GOVERNANCE
At OMH’s top governance level, the Board of Directors (“Board”)
supervises the formulation and adoption of sustainability
related policies. The Sustainability
strategies alongside
Management Committee is responsible for outlining execution
plans and overseeing the implementation of Board-sanctioned
strategies.
Every significant subsidiary instituted working groups dedicated to
overseeing the business’s environmental, social, and governance
aspects. These groups specifically concentrate on executing and
OMH Board
of Directors
Sustainability
Management
Committee
OMM
OM
Sarawak
OMS
Other
Subsidiaries
ESG Working
Group
ESG Working
Group
ESG Working
Group
ESG Working
Group
implementing corresponding strategies and initiatives. These
working groups comprise representatives from the material
subsidiaries and relevant departments.
We also established a dedicated Environmental Regulatory
Compliance Monitoring Committee
Environmental
Performance Monitoring Committee. These committees monitor
the implementation and efficacy of environmental policies and
formulate additional
if deemed
necessary.
implementation measures
and
OMH Board of Directors
Sets the strategic roadmap, reviews and
approves the Group’s Sustainability Statement.
Sustainability Management Committee
1. Sets out the execution plans, oversees and
reviews the implementation of sustainability
strategies approved by the Board.
2. Responsible for reviewing and updating the
materiality matrix when required.
3. Reports to the Board.
Subsidiaries
1.
Implements and delivers sustainability
strategies.
2. Responsible for monitoring, providing
quantitative reporting and identifying key
improvement areas.
3. Reports to the Sustainability Management
Committee.
SUSTAINABLE GOALS LEAD THE WAY
The 2030 Agenda for Sustainable Development, adopted by all United Nations member states, provides a blueprint for people and
the planet to eliminate poverty, fight inequality, safeguard our oceans and forests and halt climate change. UNSDGs reflect three
dimensions: Climate and Environment, Economy, and Social Conditions.
OMH’s work relating to sustainability focuses on the following four goals:
OMH upholds a robust ethical framework, prioritising the health and safety of employees, supply chain partners,
and all workers and contractors. Our employment practices safeguard human rights, the environment, and other
determined requirements. Together, we deliver inclusive and sustainable economic growth.
OMH actively contributes to this goal by providing manganese ores and ferroalloys, essential elements for
manufacturing high-quality steel required to transition to a low-carbon economy. OMH promotes economic growth
through sustainable industrialisation, focusing on research and development to consistently develop cleaner and
environmentally friendly production technologies. Continual infrastructure enhancements help meet forthcoming
sustainability demands. Our emphasis on innovation, science and technology remains imperative to achieving
sustainable industrialization and driving economic growth.
OMH remains committed to investing in research and development, continually striving for improvement, and
actively reducing resource consumption and emissions. Our dedication to responsible consumption and production
involves optimising resource use, mitigating emissions, reducing waste, and minimising environmental impacts
while fostering sustainable economic growth.
OMH optimises energy usage through process refinement and operational enhancements, and exploring energy
recovery solutions. OMH also invests in new and alternative technologies to reduce direct carbon emissions from
production operations. This proactive approach aligns with the Company’s commitment to sustainable practices for
improved energy efficiency and decreased intensity of greenhouse gas emissions across operations.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT OMH’s Short-Term Sustainability Targets
Material
Topics
Occupational
Health and
Safety
Short-Term Targets (2023-2026)
Target Year
Progress
Achieve Zero (0) workplace fatalities
Continuous
✓ Target achieved. Zero workplace
fatalities reported in FY2023
Achieve ISO 45001 Occupational Health and
Safety Management System
2023
✓ Target achieved. Certification
obtained in December 2023
Talent
Management
60 local employees trained to replace foreign
staff at OM Sarawak
Continuous
Achieve 75% localisation rate for key smelting
operation positions* by prioritising local talent
recruitment and training & development
2025
*Consists of stoking operators, smelter listing operators
and tapping operators
✓ Target achieved. A total of 91 local
employees were trained to replace
foreign staff in FY2023
🕔 Ongoing work in progress. Year
2023:
Stoking Operator: 79%
Tapping Operator: 50%
Smelter Lifting Operator: 48%
Power Distribution Operator: 50%
Environmental
Management
Achieve ISO 14001 Environmental Management
System certification
2023
✓ Target achieved. Certification
obtained in December 2023
Energy
Management
Achieve
System
ISO 50001 Energy Management
2024
Air Emissions
To eliminate fugitive fumes from tapping
process. Complete 3
tapping deduster
construction for 3 FeSi production workshops.
2024-2026
Climate
Change
Establish Decarbonisation Plan
Achieve ISO 14067 Product Carbon Footprint
Certification
Complete feasibility study for waste heat
recovery and power generation
2024
2026
2026
🕔 Ongoing work in progress.
Implementation expected to take
9-10 months.
🕔 Ongoing work in progress.
Construction of tapping deduster
for 1 workshop completed on 2
January 2024.
🕔 Ongoing work in progress
🕔 Ongoing work in progress
🕔 Feasibility study in progress
Waste
Management
Repurpose 80% of scheduled waste within the
circular economy framework
Continuous
✓ Target achieved. >90% scheduled
waste recycled in FY2023
Achieve
Accreditation
ISO/IEC 17025 Silica Fume Lab
2024
🕔 Ongoing work in progress
Establish
silicomanganese slag
“Green Aggregate Product”
for
2025
🕔 Ongoing work in progress
Achieve ISO 9001 Quality Management System
2025
🕔 Ongoing work in progress
Quality
Management
Biodiversity
To plant 10,000 native tree species in Similajau
National Park
2026
🕔 Ongoing work in progress. Planted
800 trees in FY2023. To continue
to plant 2,528 trees in 2024, 3,336
trees in 2025 and 3,336 trees in
2026
🕔 Ongoing work in progress. Year
2023:
Code of Conduct: 61%
Anti-Bribery & Corruption: 87%
Responsible
Supply Chain
100% of suppliers to comply with OMH’s
Supplier Code of Conduct, and Anti-Bribery &
Corruption Policy
2026
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT SUSTAINABLE ECONOMIC GROWTH
OMH remains steadfast in its commitment to driving growth and value creation, benefiting customers, shareholders and employees
while responding to the imperative for a sustainable future. As a leading manganese and silicon company in the region, we consistently
excel in economic competitiveness and environmental standards, owing to our extensive knowledge accumulation, targeted
investments, and ongoing organisational development. Continuously pursuing advancements in technology and operations, OMH
strengthens its position and contributes to economic sustainability, setting pioneering industry benchmarks and propelling the nation
towards a more sustainable future.
DEFINING TOMORROW THROUGH INNOVATIVE SOLUTIONS
Our flagship smelter in Sarawak manufactures ferrosilicon and manganese alloys, essential additives in steelmaking and various
industrial applications. These ferroalloys have no substitutes and are critical for producing the most fundamental steel products,
playing a crucial role in transitioning to a low-carbon economy and promoting global sustainable solutions. Our operations substantially
contribute to Sarawak’s economy through significant expenditures and investments.
HIGH SOCIO-ECONOMIC RETURN
RM70 million per month contributed to Sarawak economy in FY2023
Medical,
Insurance,
Security &
Welfare
Raw
Materials
Consumables
- Hardware, PPE
Stationery,
Uniforms, IT
Crushing & Logistics
- Imports & Exports
Salaries
Utilities
- Electricity,
Water,
Internet, etc.
RM 70
Million
per month
Food,
Accommodation,
Transportation,
Rental of Equipment
Legal &
Professional,
Training
Plant &
Infrastructure
Maintenance
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT OMH’s Key Activities
Mining & Exploration
Smelting & Sintering
Manganese is one of the world’s most commonly used
industrial metals, with no available substitutes. The Group
previously mined manganese ore from its wholly-owned Bootu
Creek mine in Australia, which ceased mining operation in
December 2021. OMH has a 13% interest in the Tshipi Borwa
mine in South Africa through a strategic partnership with a local
partner. The Group undertakes various exploration projects
to secure a long-term material pipeline for its customers and
smelters.
Smelting converts raw ores mined from the ground into
semi-finished alloys used in various industrial applications.
Sintering is the process of heating and fusing powdered ore
into higher-grade, semi-processed ores. The Group owns two
smelting plants in Samalaju (Sarawak, Malaysia) and Qinzhou
(Guangxi, China). The flagship smelter complex in Samalaju
produces
ferrosilicon, silicomanganese and high-carbon
ferromanganese, while the smelter in Qinzhou has the capacity
to produce high-carbon ferromanganese and sintered ore.
Production at the Qinzhou plant ceased in December 2021
due to high power tariffs in China. A Share Sale Agreement for
the sale of a 90% equity interest in OMQ was executed on 1
November 2023 and OMS has retained a 10% interest in OMQ.
Marketing & Trading
Investments
With origins in marketing and distributing ores and ferroalloys,
the Group has retained its extensive distribution network and
edge in connecting raw materials with buyers and users. Based
in Singapore, the division is active in ore and ferroalloy markets
and leverages economies of scale of the Group’s operations to
streamline raw material procurement and product sales. The
division also operates in China, distributing manganese ore
domestically since 1994.
We constantly evaluate opportunities on the horizon to expand
our resource base and build a pipeline of quality materials, from
investments in greenfield projects to farm-in partnerships with
proven resource companies. Our long history and experience
influences our investment strategy in marketing ores and
ferroalloys. We only invest in assets that produce products we
can price and market effectively.
Exports help develop the nation, facilitating international trade and stimulating domestic economic activity by creating employment,
production and revenues. OM Sarawak exports approximately 90% of its products, primarily to Japan, South Korea, Taiwan, Southeast
Asia, USA and the EU.
Today, the Group supplies manganese ore, manganese alloys and ferrosilicon, and seeks to be the leading ferroalloy supply partner to
distributors and major steel mills globally. We supply products from our Asia-Pacific base to customers worldwide through our global
trading network.
What is steel made from? Many people know that steel is made of iron, but few realise it contains manganese and silicon. Although
the amount of manganese and silicon used to create a tonne of steel is minimal (approximately 3 to 4 kilograms per tonne of regular
carbon steel), it is just as essential as iron to produce this fundamental building block of modern industrial societies. Simply put, you
can’t make steel without manganese and silicon.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT OMH attributes its success to sustained emphasis on talent development, operational improvements, leveraging economies of scale,
and increased efficiencies across the supply chain from raw material procurement to manufacturing and product sales.
We minimise the adverse impacts of our activities by building partnerships to support sustainable development and growth. OMH is a
member of the International Manganese Institute (“IMnI”), which facilitates transformative change in the manganese industry through
collaborative efforts with industry peers.
TAX PRACTICES
Taxes are crucial in generating government revenue, shaping fiscal policies and maintaining macroeconomic stability within nations.
As a good corporate citizen, it is our responsibility to adhere to tax laws and be accountable for maintaining high standards in tax
management.
Read more about our tax practices within the FY2023 Financial Statements.
THRIVING IN THE GLOBAL SHIFT - PRODUCING YESTERDAY’S COMMODITIES TODAY, SUSTAINABLY
OMH is one of the world’s lowest-quartile ferroalloy smelting operators. Economic recovery and a structural supply disruption caused
by global decarbonisation have created significant demand. These conditions make OMH a prime beneficiary of rising power prices
and the global transition to renewables.
Aluminium, silicone, semiconductor and solar applications consume silicon as silicon metal. Primarily consumed by the aluminium and
silicones sectors, the consumption growth of silicon metal is anticipated to grow with a surge in demand from the solar industry. We
aim to produce the highest grade possible for silicon metal, as higher purity levels result in higher profit margins.
Energy costs account for a substantial share of smelting costs. Silicon metal production requires twice as much energy as ferrosilicon
production. OM Sarawak’s access to clean and renewable energy contracted at fixed prices over a 20-year Power Purchase Agreement
(valid until 2033) strengthens the average long-term margins compared to other producers. Access to clean, renewable and competitive
energy also lowers the smelter’s total carbon footprint compared to our peers.
We are maintaining existing core products for the steel industry with diversification into electronic, chemical and solar sectors.
Metals for today and tomorrow
Ferroalloys
Silicon Metal
TODAY
TOMORROW
• First quartile cost
producer
• Large demand
base
• Hydropower
green credentials
• Solar a key renewable, fully
dependent on the supply of
silicon metal
• Supply security concerns
Supplying
Supplying
Steel Mills + Foundries
Polysilicon + Silicone + Aluminum Plants
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT RESPONSIBLE SUPPLY CHAIN
OM Sarawak follows standard operating procedures for annual performance evaluations concerning spare parts, auxiliary equipment
and service providers. The assessment encompasses five criteria: Price, Delivery, Quality, Technical Aspects, and Responsiveness,
considering our Risk-Based Responsible Sourcing Strategy. In Singapore, OMS oversees the Group’s product and trade flow and
conducts performance evaluations for raw material suppliers.
The production and sourcing
of metals and minerals
The procurement of goods
and services
We ingrained our sustainable supply chain approach in our commitment to ethical, social, and environmental principles. Prioritising
these values in our interactions with suppliers and customers aligns our operations with sustainability goals.
Central to our approach is the comprehensive understanding and proactive management of risks related to human rights violations,
environmental impacts, and other pertinent concerns within our supply chain. Through risk-based due diligence, an integral part of
our responsible sourcing strategy, we identify and evaluate risks associated with Conflict-Affected and High-Risk Areas (“CAHRAs”). This
meticulous assessment allows us to adopt a collaborative approach to mitigate these risks, particularly those linked to human rights
violations, throughout the supply chain.
As part of our rigorous standards, all raw material suppliers since 2018 must furnish a Declaration Letter of Compliance. This declaration
verifies their adherence to sustainable practices and confirms the absence of child and forced labour within their operations. This
mandatory requirement ensures that our suppliers align with our commitment to ethical and responsible practices, fostering a
sustainable and conscientious supply chain ecosystem.
This year, OMS implemented a Supplier Self-Assessment Questionnaire (“SAQ”) for its primary suppliers to enhance our supply chain
due diligence. The SAQ gained deeper insights into how suppliers identify and manage their Environmental, Social, and Governance
impacts and risks. This initiative allowed us to engage our key suppliers actively, demonstrating our commitment to responsible
sourcing.
Topics in Supplier Code of Conduct Self-Assessment Questionnaire
Business
Integrity &
Ethics
Non-
discrimination
Harassment &
Abuse
Forced Labour
Child Labour &
Young Workers
Wages &
Benefits
Freedom of
Association
& Collective
Bargaining
Dormitories
Environmental
Protection
Health &
Safety
OM Sarawak has integrated ISO 14001 and ISO 45001 requirements into its Supplier Code of Conduct. In FY2023, 61% of 244 eligible
suppliers signed the Supplier Code of Conduct declaration. No suppliers were disqualified due to ethical or human rights violations in
FY2023.
OM Sarawak extended its Anti-Bribery and Corruption Policy to suppliers as part of our continued monitoring of risks across the supply
chain. As of FY2023, 87% of the 244 suppliers had submitted the Anti-Bribery and Corruption policy.
As at 31 December 2023, the Group has 422 suppliers providing its production entities, with raw materials, energy, goods, services and
logistics. OMH diligently oversees and maintains detailed supplier and purchasing information for these subsidiaries.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT OMH prioritises sourcing and procuring goods and services from local suppliers, fostering support for the local economy. Auxiliary
materials suppliers and service providers are primarily domestic. In FY2023, we engaged 422 suppliers, of which approximately 92%
were local. However, given the highly specialised nature of ferroalloy production, specific feedstock, such as ore or metallurgical coke,
are only available in particular geographic locations. As such, we often purchase bulk raw materials from foreign suppliers as they are
unavailable locally. In FY2023, foreign supplier purchases accounted for approximately 90% of total purchases.
Company
No. of Suppliers
Supplier Location (%)
Purchase Location (%)
OMM (Australia)
OM Sarawak (Malaysia)
OMQ (China)
48
359
15
ETHICS AND COMPLIANCE
Local
100%
91.0%
100%
Foreign
-
9.0%
-
Local
100%
9.7%
100%
Foreign
-
90.3%
-
Upholding ethical conduct and compliance is the cornerstone of our organisational ethos. We trust our employees and business
partners to understand and adhere to the ethical, legal and job-specific policy requirements. Any perceived breaches of the law or our
Group’s Code of Conduct are strongly encouraged to be reported, fostering a culture of accountability and transparency.
Our Code of Conduct is a comprehensive guide, meticulously outlining our standards, legal responsibilities, and expected behaviour.
Covering essential facets, including business ethics, conflict resolution, fair competition, sustainability, human rights, and community
welfare, it serves as a guiding beacon for ethical conduct within OMH. The Code of Conduct stipulates that we must conduct all
business dealings solely in the business’s best interests and actively avoid conflicts of interest.
We encourage our business partners to acknowledge and affirm their commitment to upholding the Code of Conduct before formalising
any agreements in alignment with our dedication to ethical practices. This pledge ensures a shared commitment to ethical conduct,
sustainability, and the well-being of our communities, fostering an ecosystem built on integrity and responsibility.
OM Sarawak implemented an Anti-Bribery and Anti-Corruption Policy in 2022 as a proactive measure to ensure operations remain free
from any form of corruption or bribery. This policy strictly follows all relevant laws and regulations in Malaysia, including the Malaysian
Anti-Corruption Commission Act 2009, the Companies Act 2006, and the Penal Code.
Anti-Bribery and Corruption
OMH maintains a staunch commitment to ethical business practices, adhering to laws and regulations while maintaining a zero-
tolerance policy towards bribery and corruption.
OMH Anti-Bribery and Corruption Standard sets personnel’s responsibilities, including dealings with and through third parties. This
Standard applies to all directors, full-time and part-time employees, agents, suppliers, contractors, business partners, intermediaries
and other parties acting for or representing the Group.
OMH - ANTI-BRIBERY AND CORRUPTION STANDARD
Protecting
personnel seeking
to comply with
this standard
Deals with false
reports
Investigations
Consequences for
breaches
Examples of
improper conduct
(including red
flags)
Contact with
government
officials
Donations,
non-cash gifts
and corporate
hospitality
Political and
charitable
contributions and
sponsorships
Facilitation
payments
Secret
commissions
Money
laundering
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT OM Sarawak aligned its anti-corruption policy with the Malaysian Anti-Corruption Commission (“MACC”) guidelines. This policy strongly
supports OM Sarawak’s stance against bribery and corruption. It regulates gifts, entertainment, corporate hospitality, facilitation
payments, and interactions with suppliers, business partners and public officials. The policy also lists some red flags: unusual payments,
bypassing the usual process, unusual behaviour, illogical decision-making, no checks and balances and non-beneficial contracts.
Responsibilities of Employees and Business Associates
Employees
Business Associates
• Read and comply with the policy, seeking guidance for any
• Must act in a way that is consistent with the policy at all
unclear matters
times
• Attend mandated anti-bribery and corruption training
• Report any suspected violations of laws through the
•
whistleblowing hotline
The Managing Director, Board of Directors and Department
Heads must familiarise themselves with the policy and
ensure it is available and adhered to by all employees
• Acknowledge and agree to read and comply with the policy
as part of their contractual agreements
Sign a declaration form to abide by the terms of the policy
•
• Report any suspected violations of laws through the
whistleblowing hotline
OM Sarawak organised refresher training sessions on anti-bribery and corruption throughout the current year as part of our ongoing
commitment. Staff members received comprehensive training and reminders regarding OM Sarawak’s anti-corruption policy, which
includes a thorough understanding of bribery prevention. 46% of the OM Sarawak management completed the refresher training in
FY2023.
OMS conducted Anti-Bribery and Corruption training sessions for specific departments. This targeted training encompassed key
functional areas: Trade, Finance, Supply Chain, and Trade Operations. The goal was to provide relevant departments with insights and
knowledge to effectively navigate and mitigate risks associated with bribery and corruption within their respective domains. 100% of
employees from the key functional areas completed the training.
Anti-Bribery and Corruption Committee
GRIEVANCE MECHANISMS
OM Sarawak is planning to establish an Anti-Bribery and
Corruption Committee
(“ABCC”) to oversee, communicate,
implement and enforce the Anti-Bribery and Corruption Policy.
The ABCC will consist of personnel possessing the necessary
qualifications, skills, authority, independence, competencies, and
experience.
The ABCC will aim to regularly conduct comprehensive risk
assessments on operations related to ethical conduct, including
bribery and corruption, through the implementation of due
diligence audits. These audits will cover all operational areas,
identifying potential risk factors within
internal processes,
questionable financial transactions, and adherence to protocols
governing OM Sarawak’s engagements with business partners
and third parties. OM Sarawak has established procedures to
address corruption in operations deemed “high risk,” providing
comprehensive coverage of corruption and bribery.
The ABCC will deliver regular training sessions and communication
initiatives for employees and serves as a resource centre, offering
information, guidance, and advice on all matters concerning anti-
bribery and corruption issues.
The Board exercises comprehensive oversight of anti-corruption
initiatives, ensuring a thorough and encompassing approach
to addressing anti-corruption measures. The ABCC will be
responsible for providing the Board with regular reports on
the effectiveness of the programmes, their performance, and
enforcement measures taken.
Political Contributions
OMH’s policy is not to make political donations at the departmental
or OMH site level. The OMH Board must authorise any political
donations, disclose them as required by law and record them in
the corporate accounts.
OMH – ANTI-BRIBERY AND CORRUPTION STANDARD
All operations have
legitimate, accessible, predictable and
transparent grievance processes. These carefully designed
processes align with the effectiveness criteria outlined in the
United Nations Guiding Principles (“UNGP”). They serve as an
open invitation for employees and stakeholders to voice their
concerns without fear of retribution. We are committed to
conducting thorough investigations into all reported matters.
As part of our comprehensive onboarding process, OMH ensures
that each new employee receives thorough briefings on the
Group’s Grievance Policy, including during their induction into
OMH. Displaying informative posters in multiple languages
(English, Mandarin, and Malay) across our office premises and
plant buildings heightens awareness and accessibility, ensuring
that employees and contractors know our grievance mechanism.
During the year, the Group received and resolved 23 grievances.
Whistleblowing
OMH actively encourages employees, officers, and contractors
to report unlawful, improper, or unethical conduct within
the organisation. To facilitate this, OMH has implemented a
comprehensive Whistleblower Protection Standard. This standard
provides a secure and confidential avenue where whistleblowers
can voice their concerns anonymously without fearing reprisals
or detrimental treatment. Our whistleblowing system addresses
instances of bullying and harassment with managers trained in
handling such cases.
The Whistleblower Protection Standard outlines the eligibility
criteria for disclosures and the specific matters this policy
protects.
It further delineates a well-defined process for
reporting breaches. It enumerates the protections available to
whistleblowers, protecting individuals who raise concerns and
supporting them throughout the process, and shielding them
against potential victimisation.
OMH – WHISTLEBLOWER PROTECTION STANDARD
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT MANAGING SUSTAINABILITY RISK
The Company has formalised its approach to risk in its Policy for Risk Management. This policy aims to mitigate ESG risks, including
sustainability risks from the environment, human capital, sustainability, occupational health and safety, and ethical conduct.
OMH considers the reasonable expectations of stakeholders, particularly to preserve the reputation and success of the business.
OMH’s risk management system is always evolving. It is an ongoing process and will grow to be commensurate with the development
and growth of OMH’s activities.
OMH – POLICY FOR RISK MANAGEMENT
Climate Scenario Analysis
The effects of global warming are becoming increasingly apparent, with governments across the globe committing to decarbonisation.
Businesses must understand and manage their climate-related risks to remain sustainable and competitive in transitioning to a low-
carbon economy. In line with the TCFD recommendations, OMH conducted its second climate scenario analysis in FY2023. The Company
conducted a qualitative assessment of both physical and transition risks and opportunities across the Group’s key operations, adopting
two different climate scenarios developed by the Network for Greening the Financial System (“NGFS”). The assessment also referred
to the following resources:
•
•
•
The World Bank Group and the Asian Development Bank (Climate Risk Country Profile),
World Resources Institute (WRI Aqueduct Floods), and
Climate Impact Explorer (Climate Analytics).
Climate Scenarios – Characteristics
NGFS Scenario *
Description
< 2°C scenario
> 2°C scenario
Orderly scenario: Below 2°C
Too-little too-late scenario: Fragmented World
• Climate policies are
• Delayed and divergent climate policy ambition
introduced immediately
and become gradually more
stringent
• Net-zero CO2 emissions
achieved after 2070
• Relatively low physical and
globally
• Countries with net zero targets achieve them only
partially (80% of the target), while other countries
follow current policies
•
Elevated transition risks in some countries
• High physical risks internationally due to the
transition risks
overall ineffectiveness of the transition
Temperature Rise by 2100
1.7°C
2.3°C
Policy Reaction
Technology Change
Carbon Dioxide Removal
Regional Policy Variation
Immediate and smooth
Delayed & fragmented
Moderate change
First, slow, then fragmented
Medium use
Low variation
Low-medium use
High variation
* Details of the NGFS scenarios taken from the NGFS scenario portal
OMH assessed these risks and opportunities over the short term (0-5 years), medium term (5-10 years) and long term (>10 years).
OMH’s senior management team and the OMH Board validated the scenario analysis. The findings of the scenario analysis are a crucial
component of the Company’s overall risk management, long-term roadmap planning and business strategy.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Climate-Related Risks and Potential Impacts
l
a
c
i
s
y
h
P
n
o
i
t
i
s
n
a
r
T
Climate-related
Risks
Acute
•
Increased
frequency
and severity
of extreme
weather
events
Chronic
• Rising mean
temperatures
• Altered
precipitation
patterns
• Rising sea
level
Policy and Legal
•
Enhanced
emissions-
reporting
obligations
Increased
pricing
of GHG
emissions
•
transition
to lower
emissions
technology
Market
• Changing
customer
behaviour
Increased
cost of raw
materials
•
Reputational
•
Increased
stakeholder
concern
Time Horizon
Potential Impacts
Medium –
long term
Long term
Global warming is likely to cause an increase in the intensity and frequency of extreme
weather events. Exposure to heatwaves and droughts can increase operational costs,
decrease productivity, and, in extreme cases, halt operations, particularly for our
manufacturing plant in Sarawak, due to the nature of smelting operations. With the
smelting complex near Sungai Similajau, a projected increase in floods frequency
could also cause operational disruptions, affecting long-term financial planning due
to damage to the Plant’s infrastructure.
Longer-term shifts in climate patterns, particularly higher average temperatures,
can reduce labour productivity. Most notably, our manufacturing plant in Sarawak
is at high risk due to our workers’ constant exposure to the outdoors and the nature
of smelting operations. There might be a need to increase expenditure on facilities
and amenities to ensure a conducive and safe environment for work, adapt to the
changing climate and prevent disruptions in operations.
Changes in precipitation resulting in more severe dry spells may affect water supply,
with surface water being the plant’s primary source. Furthermore, as the plant
is predominantly powered by hydropower, water scarcity may cause the plant’s
electricity supply to be reduced or disrupted.
The sea level around the Sarawak coastline is projected to rise by ~1m by 2100,
and the smelting plant is within 1km of the coastline. Coastal flooding risks affect
operations and potentially result in increased operational costs.
Short –
medium-term
Governments may progressively implement carbon pricing mechanisms to reduce
greenhouse gas emissions to meet their Nationally Determined Contributions. A
prime example is the EU Carbon Border Adjustment Mechanism (CBAM), which will be
phased in from 2026. The Sarawak government passed the Environment (Reduction
of Greenhouse Gases Emission) Bill in 2023, which includes annual carbon emissions
reporting, setting carbon emissions thresholds, and potential carbon levies.
Such developments in carbon pricing and associated enhanced reporting requirements
may increase compliance costs and affect competitiveness. The entire supply chain
costs can increase significantly as companies from various stages throughout the
value chain work towards increased disclosure and transparency on GHG emissions
and climate-related compliance. OMH has begun to improve its internal systems and
data reporting processes in anticipation of more stringent reporting requirements,
incorporating carbon pricing within its CAPEX planning.
With the transition towards a low-carbon economy, companies may be expected to
invest more in R&D and alternative technologies to transition to low-carbon products,
raising overall capital expenditures.
Short term
In line with the steel industry’s efforts to decarbonise, steel mills are anticipated to
increasingly prioritise raw materials with lower carbon emissions. Such a move may
cause increased competition from ferroalloy producers with low-carbon product lines.
In addition, demand for low-carbon materials may cause increased costs throughout
the supply chain as companies invest to reduce their carbon intensity and enhance
their carbon reporting.
Medium-term Companies perceived as contributing to climate change or taking insufficient action
to address such issues may face reputational damage, harming their brand and
customer loyalty.
Technological
• Costs to
Medium –
long term
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Climate-Related Opportunities and Potential Impacts
Climate-related
Opportunities
Time
Horizon
Potential Impacts
Growth in
demand for low-
carbon ferroalloys
Short term As governments and the industrial market continue to push for decarbonisation, the demand
for low-carbon products will increase across the value chain. This shift presents an opportunity
for OMH to retain a competitive edge with our low-carbon product offerings. The Group plans
to invest in alternative technologies and continue conducting R&D to further reduce the carbon
intensity of its products, enhance our competitiveness and increase our market share.
Reduced costs
of low-carbon
technologies and
increased access
to capital
Long term A significant source of carbon emissions from ferroalloy production is using fossil carbon as
a reductant. New and alternative technologies often face barriers to entry, such as higher
production costs. With increased demand for low-carbon ferroalloys and projected increases
in carbon taxes, such technologies are anticipated to become more readily available and cost-
competitive. As such, there is an opportunity to enhance OMH’s low-carbon product offerings
and market competitiveness. OMH plans to explore and implement such alternative technologies
where economically viable.
Furthermore, investors, financial institutions and lenders increasingly seek companies that address
climate change and may be more willing to finance projects that aim to reduce the Company’s
overall climate impact.
In line with its commitments to the Paris Agreement, Malaysia has announced a carbon-
neutrality target of 2050, including continued efforts to decarbonise its national energy grid. This
commitment provides an opportunity to reduce the carbon intensity of OMH’s products, as energy
usage during ferroalloy production is a significant source of carbon emissions. OMH will continue
to engage with the relevant stakeholders to capitalise on opportunities to maintain low production
emissions.
Increased
availability of low-
emission energy
sources
Medium –
long term
ENVIRONMENT
The production of manganese alloy and ferrosilicon is an energy-intensive chemical process which requires carbon sources to serve
as reductants in the carbothermic reduction of metal oxides. This smelting process generates emissions of carbon dioxide (“CO2”),
nitrogen oxides (“NOx”), sulfur oxides (“SOx”) and dust. In light of the effects of global warming and the transition towards a low-carbon
economy, companies must decarbonise their operations or face substantial transition risks. Moreover, with biodiversity declining at
an unprecedented rate, critical ecosystem services, upon which businesses and societies rely on, are diminishing, posing significant
challenges to economies worldwide. Due to the nature of the chemical reactions involved in ferroalloy smelting, significant emissions
reductions rely on technological advancements. Innovative strategies are implemented by systematically improving operational
performance to mitigate the environmental impact associated with these manufacturing processes.
THE CHALLENGE
The world is undergoing a green industrial revolution. The Intergovernmental Panel on Climate Change stipulated that limiting the
Earth’s average temperature increase to 2°C is critical for controlling climate change. Achieving this goal requires a 95% reduction in
greenhouse gas emissions by 2050. Greenhouse gas emissions should be reduced in our industry within the next 35 years, making the
status quo unsustainable.
ENVIRONMENTAL POLICY
OMH is committed to implementing robust environmental management practices across all its operations. To achieve elevated
environmental performance across all functions, the Group has instituted a comprehensive Environmental Policy which covers:
•
•
•
•
•
•
•
•
Complying with applicable environmental laws, regulations, codes, corporate and industry standards and other legal and
contractual requirements;
Identifying, assessing and managing all environmental risks and impacts related to Group operations;
Implementing industry practices and environmental management systems such as evaluations at all levels, including
exploration, development, operations, decommissioning, closure and rehabilitation;
Preventing and mitigating pollution from Group operations;
Regularly reviewing environmental performance;
Reporting environmental performance transparently;
Establishing grievance mechanisms for all stakeholders where environmental complaints can be received and addressed; and
Ensuring all personnel are aware of this policy and their environmental-related responsibilities, raising awareness and
minimising the potential environmental impacts of the Group’s operations.
The Executive Chairman/Chief Executive Officer is accountable to the Board for effectively implementing this policy. The Group delivers
training and awareness sessions on this policy as required.
OMH – ENVIRONMENTAL POLICY
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT ENVIRONMENTAL MANAGEMENT SYSTEM
Effective environmental stewardship is crucial for sustainability across operational areas. OMH’s subsidiaries integrate Environmental
Management Systems to maintain consistent and optimal environmental practices throughout its smelting operations. Projects
undergo thorough planning and environmental responsibility identification, and management protocols are implemented from
inception to operation. Oversight by environmental professionals ensures compliance, fostering positive practices and delivering
excellent outcomes.
OM Sarawak achieved ISO
14001:2015 Environmental
Management Systems
certification on 4 December
2023, underscoring the
Plant’s commitment
to environmental
sustainability.
OMH’s flagship smelter in Sarawak aligns with ISO 14001 Environmental Management Systems and industry standards, ensuring
adherence to top-tier environmental practices. The Group complies with legislative requirements while working closely with stakeholders
to meet community expectations. These practices highlight management’s dedication to enhancing the Company’s environmental
performance and operational efficiency.
USING LIFECYCLE ANALYSIS TO ADDRESS ENVIRONMENTAL CONCERNS
Previously, OMH partnered with the IMnI to conduct a comprehensive ‘cradle-to-gate’ LCA focusing on manganese ore and manganese
alloys. This evaluation enabled a clearer understanding of our environmental impact and allowed benchmarking against industry
peers. The LCA encompassed all processes within the plant gate, covering resource extraction and processing (smelting). The LCA
model was subsequently analysed further using GaBi software.
In FY2023, we extended the LCA to include ferrosilicon alloys. These assessments are valuable for our customers and major regional
steel mills, helping them make environmentally sound decisions to enhance sustainability in their supply chains.
ADDRESSING CLIMATE CHANGE
Climate change is a critical threat to humanity, significantly impacting our business operations. We recognise the significance of climate
change risks and their direct relevance to our business. We have implemented a climate change response strategy that expands
renewable energy use, reduces operating gases, and improves energy efficiency throughout our manufacturing process.
THE IMPORTANCE OF STEEL IN A ZERO-EMISSION SOCIETY
Despite being resource-intensive, steel, manganese alloy, and ferrosilicon are crucial for achieving a zero-emission vision. Steel is 100%
recyclable, with the global steel industry recycling 680 million tonnes in 2021, saving nearly 1 billion tonnes of CO2 emissions*. Steel
consumption surged sevenfold since 1950 and is projected to increase by 50% by 2050. Steel relies on ferrosilicon and manganese
alloy, which are highly valued for their durability, with 3-4 kg and 10 kg used per tonne of steel, respectively. Its importance lies in its
pivotal role in sustainable development and meeting the goals of a green paradigm shift.
*Worldsteel Association: Sustainable Steel
We recognise the devastating effects of climate change and its associated short and long term business risks. OMH remains firmly
committed to mitigating these effects by enhancing operational efficiency. Our climate change strategy encompasses collaboration
with employees and supply chain partners to implement energy-saving processes and comprehensively assess climate change risks.
Our ferroalloy production is inherently energy-intensive. With our Sarawak plant located at Samalaju Industrial Park, electricity supplied
is predominantly generated from renewable sources. We are also committed to addressing the issue of climate change and improving
efficiency by adopting new and green technology in development and implementing energy efficiency measures, where applicable.
We recognise the potential risks associated with climate change, both physical and regulatory. As part of climate-related risk management,
we have included a climate risk scenario analysis (pg 52-54), which forms part of the foundation for formulating the business strategy
and selecting future R&D and technological investments. We also work closely with regulators, such as the Department of Environment
(“DOE”), and regularly consult on ways to address challenges brought by climate change, such as through public policy implementation.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Our Sustainability Management Committee sets out execution plans and oversees and reviews the implementation of sustainability
strategies, including climate-related initiatives to manage and minimise our environmental footprint. Progress reports on energy
management, pollution monitoring and other sustainability proposals and progress are presented to the Board.
Climate change affects operating costs (“OPEX”) and capital expenditure (“CAPEX”). Efficiency, output and performance of assets and
equipment can decrease due to changing climate conditions. Additional CAPEX may be required due to asset damage or to upgrade
facilities and equipment to comply with regulatory demands. OPEX may increase as a result of reduction in labour productivity due to
heat stress, and increased cost of raw materials, amongst other climate-related impacts.
As part of our sustainability initiatives, we are exploring the development of a decarbonisation roadmap that will outline a clear path
towards a low-carbon future for OMH. This roadmap will consider various strategies, including further investments in renewable
energy sources, technological advancements and operational optimisation initiatives.
Greenhouse Gas Verification
Site visit was conducted from 27 to 30 November 2023 at the Sarawak Plant as part of the GHG verification procedure
The Group conducted an independent verification of its GHG emissions for FY2023 to establish a base year inventory, facilitate this
process and track progress over time. The GHG inventory report was prepared in accordance with the requirements of ISO 14064-
1:2018, the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, and the Greenhouse Gas Protocol Corporate
Value Chain (Scope 3). The Group has adopted an Operational Control consolidation approach to quantify its GHG emissions.
Scope of GHG Verification
ISO 14064-1: 2018
GHG Protocol
Category 1: Direct GHG emissions and removals
Scope 1: Direct GHG emissions
Category 2: Indirect GHG emissions from imported energy
Scope 2: Indirect emissions from purchased electricity
Scope 3, Category 3: Fuel and energy-related activities
Category 3: Indirect GHG emissions from transportation
Scope 3, Category 4: Upstream transportation and distribution
Category 4: Indirect GHG emissions from products used by the
organisation
Category 5: Indirect GHG emissions associated with the use of
products from the organisation
Scope 3, Category 6: Business travel
Scope 3, Category 7: Employee commuting
Scope 3, Category 1: Purchased goods and services
Scope 3, Category 2: Capital goods
Scope 3, Category 5: Waste generated in operations
Scope 3, Category 10: Processing of sold products
Category 6: Indirect GHG emissions from other sources
Scope 3, Category 15: Investments
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Greenhouse gas emissions (kilotonnes CO 2e)
Base year*
Breakdown of greenhouse gas emissions for
FY2023 (kilotonnes CO 2e)
Scope 1,
1031.36, 59%
Scope 3, 232.38,
13%
1,137.08
1,187.15
Greenhouse gas emissions intensity (kilotonnes
CO 2e / tonne of product)
1,759.23
Scope 2, 495.49,
28%
Scope 1,
1,031.36,
59%
5.66
2021
6.10
2022
5.94
GHG Emissions
2023
Greenhouse gas emissions intensity (kilotonnes
CO 2e / tonne of product)
*FY2023 has been designated as the base year for OMH, which
includes Scope 1, 2 and 3 emissions. In FY2021-2022, only Scope 1
and 2 emissions were examined.
5.66
2.50
6.10
2.50
5.94
2.20
2.23
Greenhouse gas emissions intensity
(kilotonnes CO 2e / tonne of product)
2021
2.20
2022
2.23
Ferrosilicon
5.66
Manganese Alloy
2023
6.10
5.94
2021
2022
2023
Ferrosilicon
Manganese Alloy
2.50
2.20
2.23
2021
2022
2023
Ferrosilicon
Manganese Alloy
The breakdown of Scope 3 emissions can be found in the
Performance Summary table (pg 79).
ENERGY MANAGEMENT AND CONSUMPTION
The Group is formally committed to addressing energy use,
aiming to reduce environmental impact and enhance overall
efficiency. OM Sarawak operates on a 202.35-hectare site within
the Samalaju Industrial Park (“SIP”), designed explicitly for energy-
intensive industries. At the inception of our plant, we secured
a 20-year power purchase agreement (“PPA”) with the State’s
power company. This agreement ensures a consistent and
competitively priced electricity supply until 2033, initially set at
a capacity of 350 MW. The electricity predominantly comes from
renewable sources. However, our primary smelting operations
are electricity-dependent; diesel fuel powers logistics and on-land
transportation of raw materials and finished goods.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT 5.66
2.50
Greenhouse gas emissions intensity (kilotonnes
CO 2e / tonne of product)
5.66
6.10
5.94
Greenhouse gas emissions intensity (kilotonnes
CO 2e / tonne of product)
2.50
6.10
2.20
5.94
2.23
2021
2.20
Ferrosilicon
Energy Intensity (GJ / tonne of product)
2023
2022
31.97
Manganese Alloy
2.23
31.78
32.17
2021
2022
2023
Ferrosilicon
Manganese Alloy
13.89
13.86
13.21
2021
2022
2023
Ferrosilicon
Manganese Alloy
Examples of OM Sarawak’s Energy-Efficiency Initiatives
Our operations demand a consistent electricity supply, especially
for the high-temperature smelting processes crucial in transforming
raw materials into ferroalloys. The electric arc furnace operates
at temperatures over 1200°C, reducing metal oxides to create
various ferroalloys. Powering our production processes with
predominantly hydroelectricity significantly reduces our carbon
footprint. Diesel fuel is used in the sintering process and logistics
operations, including on-land transportation of raw materials and
finished goods. Monitoring our monthly energy consumption
helps us assess our performance and set annual targets.
OM Sarawak will begin its ISO 50001:2018 Energy Management
Systems certification in 2024. Implementing ISO 50001:2018 in OM
Sarawak would benefit OM Sarawak’s Energy Management System
by establishing and implementing a structured, process-based
energy management framework to improve energy performance,
thereby significantly reducing energy consumption and costs over
time.
Static Vac (“SVC”)
system
Supervisory
Control and
Data Acquisition
(“SCADA”) system
Furnace
maintenance plan
Furnace
power factor
compensator
system
Implementing a SVC system at the plant’s high-voltage substation provides energy management advantages. This system acts as
a dynamic voltage regulator, injecting or absorbing reactive power to maintain stable voltage levels, especially during periods of
fluctuating load. This process minimises energy losses from voltage drops and improves the overall stability and reliability of the
plant’s electrical system.
In FY2023, the upgrading of the plant’s Substation SCADA system contributed significantly to enhanced energy management. A
modern SCADA system provides real-time data on energy consumption and equipment performance, allowing for better energy usage
monitoring, analysis, and optimisation.
Periodic substation preventative maintenance ensures equipment efficiency and reduces energy wastage caused by unexpected
downtimes.
OM Sarawak has worked on and implemented a robust furnace maintenance plan. By minimising downtime and ensuring optimal
operation, furnaces can significantly reduce their energy consumption per tonne of produced product through regular inspections,
timely repairs, and optimising smelting settings and insulation to minimise heat losses. A well-maintained furnace saves energy and
extends its lifespan, reducing operational costs.
OM Sarawak also utilises a power factor compensator system specifically designed for the plant’s smelting furnace. This system corrects
the phase difference between voltage and current, leading to a closer unity power factor. This adjustment reduces the reactive power
demand on the grid, lowering energy costs and improving overall smelting efficiency.
EMISSIONS MANAGEMENT
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT OM Sarawak’s approach to air emissions management revolves
around optimising production processes to minimise the
generation of non-greenhouse gas
(non-GHG) emissions.
Additionally, we employ pollution control technologies such as
bag filter systems to reduce atmospheric pollution.
OM Sarawak complies with the Environmental Quality Act 1974,
the Environmental Quality (Clean Air) Regulations 2014, and the
Malaysia Ambient Air Quality Standard 2020.
OM Sarawak conducted Ambient Air Quality Monitoring for
ambient air quality, measuring key pollutants such as particulate
matter (“PM10 and PM2.5”), carbon monoxide (“CO”), sulfur dioxide
(“SO2”), and nitrogen dioxide (“NO2”). Our readings during the
FY2023 monitoring period were well below the Malaysian
Ambient Air Quality Standard Concentration Limit, except for PM10
and PM2.5 at one sampling point within the plant boundary that
exceeded the stipulated limit during the first quarter. However,
readings for PM10 and PM2.5 at the sampling point outside the
plant boundary were well below the limit, which indicated that
dust dispersion was localised within the plant boundaries.
Within the plant, a Continuous Emissions Monitoring System
(“CEMS”) oversees the emission of total particulate matter
(“TPM”) through the stacks. Gas analysers positioned at emission
stacks continuously monitor and measure the emissions. The
collected readings are recorded and stored within the CEMS
and automatically transmitted to the DOE for monitoring and
regulatory purposes.
Quarterly Stack Emission Monitoring (“SEM”) ensures the Plant’s
adherence to the Malaysian Ambient Air Quality Standard
Concentration Limit. OM Sarawak utilises this data for several
critical purposes:
•
•
•
Assessing the environmental
production processes
Identifying potential sources of pollution
Implementing strategies to minimise emissions and
enhance air quality
impact resulting from
We have equipped the ferrosilicon and manganese alloy
furnaces with an Air Pollution Control System (“APCS”). This
system includes trombone air coolers, twin cyclones, baghouse
systems, extraction fans, and chimneys to safeguard air quality.
The Utilities and Dedusting System Department (“UDSD”) at
OM Sarawak, overseen by competent personnel, manages and
maintains the Plant’s APCS. All operators in this department are
Certified Environmental Professionals in Bag Filter Operations
(“CePBFO”) accredited by the DOE. UDSD personnel perform daily
inspections and preventive maintenance, changing filter bags as
needed to manage air pollution effectively.
Recognising the need to enhance the efficiency of our APCS, OM
Sarawak implemented a pilot project utilising high-quality bag
filter filtration media. We successfully tested ePTFE membranes in
several key dedusters, achieving a demonstrably positive impact
on dust filtration efficiency. OM Sarawak regularly engages
with external experts who specialise in APCS and bag filters to
enhance the APCS.
Benefits of ePTFE Membrane
Better dust
filtration
efficiency
Extended
filter bag life
Minimal bag
changeouts
Chemical
resistance
Thermal stability
up to 260°C
Reduced stack
emissions well
within limits
OM Sarawak is committed to reducing air pollution (i.e. fugitive
fume emissions).
In FY2023, OM Sarawak completed the
upgrading of one tapping deduster, significantly enhancing
its capacity. Following the success of the upgrading works, OM
Sarawak intends to further optimise the system by upgrading an
additional six tapping dedusters.
BIODIVERSITY AND CONSERVATION
OMH recognises the importance of environmental stewardship
and biodiversity conservation. Similajau National Park lies within
a 3 km radius of our flagship smelting complex. The National Park
consists of a mixture of habitats, including rainforests, mangroves
and beaches, and boasts a rich diversity of local flora and fauna,
which should be conserved.
We are dedicated to addressing biodiversity concerns, and this
commitment involves actively working towards reducing and
avoiding adverse impacts on biodiversity. OM Sarawak conducts
Quarterly Environmental Monitoring, which includes monitoring
the concentrations of pollutants (such as manganese, iron, silica
and sulfur) in foliar and fruits. Our quarterly readings for FY2023
were well below the baseline concentration limits identified
during the Detailed Environmental Impact Assessment (“DEIA”)
conducted before the smelting complex’s construction.
Committed to responsible business practices, OM Sarawak is
collaborating with local experts to develop a comprehensive
Biodiversity Management Plan. This plan underscores our
commitment to mitigating our operations’ potential ecological
impacts and preserving the unique biodiversity of Similajau
National Park and the surrounding ecosystem.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT REWILDING – CONTRIBUTING TO THE ENVIRONMENT & LOCAL COMMUNITY
Biodiversity conservation through rewilding is crucial for rejuvenating damaged habitats, combating climate change, and
safeguarding the original flora and fauna of the land.
OMH signed a Memorandum of Understanding (“MoU”) with the Sarawak Forestry Corporation (“SFC”) on 29 November
2022 to undertake a rewilding project within Similajau National Park. The project aims to restore 10 hectares of degraded
ecosystems in Totally Protected Areas (“TPAs”) by planting 10,000 native tree species, including indigenous food trees, that
support wildlife survival and ecosystem restoration in these degraded zones. It reflects our commitment to the UNSDG 15
to halt and reverse land degradation and biodiversity loss through forest management.
OMH, through OM Sarawak will contribute RM482,600 from 2022 to 2025 to this initiative; SFC will contribute RM396,000 over
19 years to gather and monitor plant growth and biomass data, assessing the project’s effectiveness in restoring degraded
areas. SFC botanists and other experts will oversee and guide the process following the SFC Restoration Framework.
The rewilding project also engages the local community and enhances local livelihoods. The project intends to turn “poachers”
into “guardians” of the TPAs and facilitate community empowerment and ownership. The project hires the community to
cultivate seedlings, prepare planting lines, plant seedlings at degraded sites, and maintain the transplanted seedlings. As of
2023, the project contributed RM 74,500 to the local community.
Local community involvement in preparation and tree planting
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT
WASTE MANAGEMENT
At OM Sarawak, a waste policy is implemented to address its commitment to reducing or avoiding the impact through improved
efficiency. We formulate our processes with a keen emphasis on optimising resource use efficiency, and we consistently enhance our
operations to minimise waste generation and prevent land pollution.
OM Sarawak has implemented a robust waste management plan aligned with ISO 14001:2015 Environment Management Systems. With
effect from 1 March 2023, this procedure details clear and consistent instructions for safe, efficient, and environmentally responsible
waste handling practices. It outlines best practices for handling, storing, disposing and reporting waste across OM Sarawak’s operations.
OM Sarawak conducts regular
waste management training to
ensure staff are well-informed
on proper procedures. An
internal training on proper
scheduled waste management
and spillage handling was held
on 17 July 2023.
OM Sarawak prioritises efficient waste management, integrating the 3R (“Reduce, Reuse, Recycle”) principles. Within the Plant, the open
scrap yard manages recyclable materials, complemented by strategies such as streamlined data entry with electronic forms, scrap
paper reuse, and Google Forms. The 3R Centre, established in 2022, advocates sustainable waste practices, curbing environmental
impact, and nurturing a circular economy. This centre is aligned with the Group’s commitment to environmental sustainability.
OM SARAWAK WASTE MANAGEMENT HIGHLIGHTS
✓ A DOE-certified third-party auditor conducted an annual Silica Fume Compliance Audit
✓ We developed Silica Fume (SW104) Special Management guidelines for on-site recovery
✓ We perform weekly self-regulated inspections and audits
Scheduled waste management is regulated. Guided by its Environmental Management System, OM Sarawak manages its waste following
the Environmental Quality (Scheduled Wastes) Regulations 2005. The generated waste is recorded in the Electronic Scheduled Waste
Information System (“eSWIS”) and submitted monthly to the DOE. Purpose-built on-site scheduled waste storage facilities contain and
prevent environmental contamination.
SIRIM Behad (“SIRIM”), a national industrial research and technology organisation in Malaysia, has conducted tests for silicomanganese
slag and silica fume according to DOE Guidelines for Application of Special Management of Scheduled Waste under Regulation 7 (1).
SIRIM certified both silicomanganese slag and silica fume as non-reactive and unlikely to endanger human health except through
oral and nasal consumption. Both by-products are within the threshold limits for organics and inorganics based on the Toxicity
Characteristic Leaching Procedure (“TCLP”) analysis.
At the Bootu Creek Mine in Australia, waste rock and processing tails are stored on-site and are not acid-generating. We manage these
wastes following Waste Management Plans for waste rock and tailings storage approved by the Northern Territory Department of
Industry, Tourism and Trade.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT TOWARDS ZERO WASTE AND CIRCULARITY
Businesses must shift from a linear process of take-make-waste to a circular economy approach to tackle climate change and other
environmental issues such as pollution and biodiversity loss. A circular economy approach eliminates waste, recovers resources and
reduces environmental pressure. OM Sarawak recycled and reused most of its by-products as raw materials for production to reduce
waste.
Products
Ferrosilicon (FeSi)
Generated By-products
Recycling and Repurposing
FeSi Slag
Silica Fume or Micro silica
Silicomanganese (SiMn)
SiMn dust
High Carbon Ferromanganese
(HCFeMn)
Manganese-rich Slag
Sinter Ore
Manganese ore fines
In FY2023, 8,118 tonnes of FeSi slag was
recycled as Si units for the SiMn smelting
process.
Reused for ingot tray preparation before
casting
from
the SiMn production
Collected
process’s de-duster and fed into sintering
lines to agglomerate into sintered ore
lumps and recycled in manganese alloy
production
In FY2023, 34,398 tonnes of Mn-rich slag
was recycled as Mn unit feed for the SiMn
smelting process.
from manganese
Collected
alloy
production for reuse as raw materials for
manganese alloys
OM Sarawak repurposes wood from broken wooden pallets and other wood waste materials to preheat the start-up furnace following
major maintenance.
SILICA FUME
Silica fume, or microsilica, is a by-product collected
from the FeSi smelting production’s baghouse after
the silica
fume densification process. Globally,
several hundred thousand tonnes of silica fume
find applications across various industrial sectors.
Due to its physical characteristics, it is a very fine
pozzolanic material widely used in concrete materials
and a valuable addition to the cement industry. Its
international trade has diversified its usage across
different industries. Notably, its utilisation contributes
significantly
the sustainability of
buildings by curbing their carbon footprint and
fostering a circular economy approach.
to enhancing
OM Sarawak has undertaken a strategic initiative to repurpose these materials into saleable products. Implementing a
robust dust collection system, specifically baghouse filters, is pivotal for capturing silica fume and reducing atmospheric
emissions. This proactive measure significantly enhances workplace conditions while preventing valuable materials from
being disposed of in landfills. To optimise the collection of silica fume, OM Sarawak has plans to install four additional
densification silos.
The DOE approved managing silica fume as a recycled product under Reg. 7 Special Waste Management of Environmental
Quality (Scheduled Waste) Regulation 2005 in 2019. OM Sarawak is required to conduct a third-party compliance audit at
least once a year to ensure it fulfils all the requirements in this Special Waste Management.
OM Sarawak is seeking accreditation for silica fume testing in accordance with ISO 17025:2017 General Requirements
for the Competence of Testing and Calibration Laboratories. This accreditation will be instrumental in ensuring the
competence and reliability of OM Sarawak’s silica fume testing laboratory, increasing test results accuracy and credibility,
and promoting material quality, safety, and regulatory compliance. OM Sarawak is targeting to obtain ISO 17025:2017
accreditation in 2024.
This success story aligns closely with multiple objectives encompassing industrial emissions reduction, carbon footprint
mitigation, resource efficiency, circular economy advocacy, adherence to workplace legislation, compliance with industrial
specifications, waste reduction, air quality improvement, and the promotion of innovation policies.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT SiMn slag has potential uses in various
construction materials as a substitute for
natural aggregates in concrete. OM Sarawak is
collaborating with the local university, UNIMAS, to
research the environmental safety and application
of SiMn slag in construction, potentially
transforming slag from waste into a valuable
resource.
WATER AND EFFLUENTS MANAGEMENT
Water is pivotal for business operations. OM Sarawak is firmly committed to optimising water usage and preventing water pollution by
ensuring effluent meets stringent regulatory water quality standards before its release into the environment.
Regarding the water management plan, OM Sarawak’s municipal water supply is not extracted from sensitive or protected water
bodies. We do not source water from areas experiencing water stress. The Plant’s water reservoir stores up to 48 hours of continuous
water flow for plant operations in case of water supply disruption from the Municipal Water Supply Board.
We are committed to saving water and have implemented comprehensive measures throughout the Plant to reduce water use. OM
Sarawak uses water in plant production operations, particularly in furnace system cooling and silica quartz washing. The cooling
water utilised for the furnace system operates within a closed-loop system, where water is treated and recycled, with most water loss
occurring from vaporisation in the cooling tower. A dedicated sediment pond efficiently treats water used in silica quartz washing,
allowing heavier particles and sediments to settle, thereby enabling water reuse in the washing process.
OM Sarawak directly channels domestic wastewater from sanitary facilities and canteen operations to SIP’s centralised sewage
treatment plant. This treatment complies with Standard B of the Environmental Quality (Sewage) Regulations 2009.
Effluent is typically generated from surface runoff, and a sedimentation pond effectively eliminates suspended solids, reducing the
overall environmental impact. Throughout FY2023, our discharged effluent consistently adhered to permissible limits stipulated by the
Environmental Quality (Industrial Effluent) Regulations, 2009.
Monitoring Wastewater Quality
Parameter
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Temperature (°C)
pH value
Iron (mg/L)
Manganese (mg/L)
Site 1
Site 2
Site 1
Site 2
Site 1
Site 2
Site 1
Site 2
26.0
7.51
0.558
0.273
25.8
8.37
0.184
0.080
27.2
7.50
1.416
0.779
27.2
8.50
0.250
0.339
25.7
8.27
0.350
0.098
25.6
8.17
0.049
N.D.
(<0.01)
26.3
8.18
0.401
0.086
26.4
8.38
0.360
0.337
TSS (mg/L)
31
15
17
4
85
6
14
7
In FY2023, OM Sarawak implemented the following initiatives to enhance water management:
1.
2.
3.
Installation of flowmeters at 41 locations to monitor daily water consumption
Retrofitted drift eliminators at three locations of cooling towers to reduce the loss of water from evaporation
Installation of a water chemical treatment automated dosing controller (NALCO 3D Trassar) at water pump stations to improve
water quality and increase the efficiency of the cooling tower recirculation system
Other Ongoing Water Management Initiatives
Recording
daily water
consumption
Limiting pressure
for hydrant pump
piping
Inspecting piping
daily to detect
leakage
Limiting water
consumption to
less than 3,800m3/
month from the
water pump
station
Implementing a
water recirculation
(closed-loop water
cooling) system
Installing
flowmeters to
monitor daily
water withdrawal
Utilising dual-flush
in some buildings
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT LAND REMEDIATION, CONTAMINATION AND DEGRADATION
Land and soil management are vital components within the mining
operations conducted in Australia’s Northern Territory, characterised
by its semi-arid temperate climate. Given the potential environmental
impacts of mining activities, we must identify and address these effects
during business operations.
OMM, overseeing operations at the Bootu Creek Mine, establishes
precise objectives, strategies, and targets for adequate soil and land
management. This approach ensures regulatory compliance and benefits
various stakeholders, including landowners and shareholders.
involves rehabilitating
Post-mining activities, a significant criterion
disturbed areas to restore the lease area to its original condition for
landowners. OMM rehabilitates infrastructure areas before closure, with
plans to remediate tracks, roads, and exploration areas no longer in use.
OMM demonstrates its commitment through progressive rehabilitation
and revegetation initiatives across diverse waste rock dumps within the
site to mitigate erosion, prevent the introduction of invasive plant species,
and safeguard nearby waterways.
The Mine rehabilitation program in 2024 will continue to focus on the
repair of damaged landforms (washouts and other water damage) and
prepare the Tourag Waste Rock Dump for seeding during the dry season.
ENVIRONMENTAL COMPLIANCE
OMM’s Timeline for Land Remediation at the Bootu Creek Mine
2019
Bioremediation of hydrocarbon-contaminated
areas
2020
Trial to small test areas
2021
A wider bioremediation campaign commenced
in FY2021 to treat contained contaminated
areas which resulted in successful remediation,
confirmed by laboratory analysis of Total
Recoverable Hydrocarbons (“TRH”)
2022
All Hydrocarbon contaminated areas
successfully remediated
2023
Additional rehabilitation works were conducted.
This consisted of clearing the wash-out areas
that have previously been seeded, creating
walls to prevent further erosion, clearing of
weeds and parasitic plants, and preparation for
the next seeding cycle.
We have remained free from environmental fines or penalties throughout the year, underscoring our commitment to compliance and
responsible practices. We have not experienced non-compliance with energy, waste and water quality/quantity permits, standards or
regulations.
OUR PEOPLE
People are the cornerstone of our achievements. Within our environment, we foster inclusivity, embracing the rich tapestry of
backgrounds, cultures, and beliefs. We nurture an inclusive culture, valuing diverse backgrounds, cultures, and beliefs while vehemently
opposing all racial and sexual discrimination and workplace harassment. Upholding human rights is paramount as we prioritise
fairness, dignity, and respect for everyone. We welcome and empower individuals irrespective of gender, age, cultural background,
ethnicity, nationality, or religion, ensuring a safe, equitable workplace with fair compensation, job security, and ample development
opportunities for all.
The Company’s policy on labour standards is communicated to all employees and translated into relevant languages. As part of our due
diligence process, we conduct labour issues risk assessments for both potential and existing operations and projects.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT EMPLOYEE DEMOGRAPHICS
Employees by region and gender
Employees by contract type and gender
8
2
11
8
1,967
331
15
30
2
1
6
1
11
8
434
47
1,533
284
1
15
29
AUSTRALI A
CHI NA
MALAYSI A
SI NGAPORE
AUSTRALI A
CHI NA
MALAYSI A
SI NGAPORE
Female Male
Permanent (Female) Permanent (Male)
Contract (Female)
Contract (Male)
Employees by working time and gender
Employees by category and gender
1
8
1
15
30
11
8
1,967
331
78.9%
81.4%
71.1%
62.3%
21.1%
18.6%
28.9%
37.7%
86.9%
13.1%
AUSTRALI A
CHI NA
MALAYSI A
SI NGAPORE
Full-time (Female)
Full-time (Male)
Part-time (Female)
Part-time (Male)
C-SUI TE
SENI OR
MANAGEMENT
MI DDLE
MANAGEMENT
EXECUTI VE
NON-
EXECUTI VE
Female Male
Employees by category and age group
Employees by category and ethnicity
6.3%
6.7%
5.3%
7.1%
13.3%
28.6%
20.0%
71.4%
75.6%
4.4%
73.7%
26.3%
39.8%
53.4%
63.4%
30.4%
C-SUI TE
SENI OR
MANAGEMENT
MI DDLE
MANAGEMENT
EXECUTI VE
NON-
EXECUTI VE
89.5%
90.0%
80.0%
33.0%
1.0%
63.4%
5.3%
C-SUI TE
2.9%
SENI OR
MANAGEMENT
6.7%
MI DDLE
MANAGEMENT
2.6%
EXECUTI VE
68.9%
2.6%
23.5%
4.9%
NON-
EXECUTI VE
<30 years
30-50 years
>50 years
Malay
Chinese
Indian
Other Races & Indigenous Groups
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Employee Hires and Turnover
New employee hires by region and gender
New employee hires by region and age group
1
1
2
1
699
70
2
8
1
2
1
1
24
266
479
1
6
3
AUSTRALI A
CHI NA
MALAYSI A
SI NGAPORE
AUSTRALI A
CHI NA
MALAYSI A
SI NGAPORE
Female Male
<30 years
30-50 years
>50 years
New
employee
hire rate*
Female
Male
Total
Australia
China
Malaysia
Singapore
Total
10.0%
10.0%
20.0%
5.3%
10.5%
15.8%
3.7%
37.0%
40.7%
20.5%
5.1%
25.6%
4.1%
36.0%
40.1%
New
employee
hire rate*
Australia
China
Malaysia
Singapore
Total
<30 years
0%
10.5%
30-50 years
10.0%
>50 years
Total
10.0%
20.0%
0%
5.3%
15.8%
25.4%
14.1%
1.3%
40.7%
7.7%
15.4%
2.6%
25.6%
24.7%
13.9%
1.4%
40.1%
*New employee hire rate is calculated based on the total employees at the beginning of the financial year
Employee turnover by region and gender
Employee turnover by region and age group
1
1
1
1
419
48
3
1
1
1
1
1
46
232
189
3
1
AUSTRALI A
CHI NA
MALAYSI A
SI NGAPORE
AUSTRALI A
CHI NA
MALAYSI A
SI NGAPORE
Female Male
<30 years
30-50 years
>50 years
Employee
turnover
rate*
Female
Male
Total
Australia
China
Malaysia
Singapore
Total
10.0%
10.0%
20.0%
5.3%
5.3%
10.5%
2.3%
20.0%
22.3%
2.4%
7.1%
9.5%
2.4%
19.6%
22.0%
Employee
turnover
rate*
Australia
China
Malaysia
Singapore
Total
<30 years
0%
30-50 years
10.0%
>50 years
Total
10.0%
20.0%
5.3%
0%
5.3%
10.5%
9.0%
11.1%
2.2%
22.3%
0%
7.1%
2.4%
9.5%
8.8%
10.9%
2.2%
22.0%
*Employee turnover rate is calculated based on the average number of employees during the financial year
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Performance Reviews
Performance reviews conducted by gender
Performance reviews conducted by employee
category
Performance reviews conducted by employee
category
85.8%
FEMALE
82.5%
82.5%
MALE
88.2%
59%
88.2%
67%
84.7%
84.7%
77%
90.8%
90.8%
88.2%
54%
88.2%
78%
82.2%
82.2%
C-SUI TE
C-SUI TE
SENI OR
MANAGEMENT
SENI OR
MANAGEMENT
MI DDLE
MANAGEMENT
MI DDLE
MANAGEMENT
EXECUTI VE
EXECUTI VE
NON-
EXECUTI VE
NON-
EXECUTI VE
UNITY IN DIVERSITY
OMH’s Commitment to Diversity
Global operations demand appreciation and adaptation to
diverse cultures and customs while upholding our corporate
ethos and benchmarks. Diversity spans gender, race, ethnicity,
nationality, disability, age, sexual orientation, gender identity,
marital or family status, and religious or cultural backgrounds.
Our Group’s unwavering dedication to diversity is integral to our
merit-based organisational culture, which focuses on attracting
and retaining top-tier talent across all echelons, including the
Board. Embracing workplace diversity aligns with our corporate
goals and fortifies the Company’s standing, allowing us to attract
and retain exceptional individuals from a varied pool of talented
candidates.
We support the community by addressing the employment needs
of underprivileged groups, including individuals from deprived
backgrounds or those lacking formal education or qualifications.
OMH’s Diversity and Inclusion Policy champions an inclusive
workplace, valuing diversity, upholding meritocracy, and fostering
an environment that appreciates differences for the benefit of
our business and employees.
Providing
access to equal
opportunities at
all levels of work
based on merit
Welcoming
people from
diverse
backgrounds
Operating
as an equal-
opportunity
employer
Fostering a
corporate culture
that embraces
diversity
Not tolerating
workplace
discrimination,
harassment,
vilification and
victimisation
Respecting the
diversity of
customers, clients
and stakeholders
As at 31 December 2023, there were no persons with disabilities
employed by OMH.
OMH – DIVERSITY AND INCLUSION POLICY
Gender Diversity
OMH prioritises fair representation across genders, which is central to its Diversity and Inclusion Policy. Clear, measurable gender
diversity goals require senior management to report progress. Supportive measures like parental leave and flexible work arrangements
help employees manage domestic responsibilities. OMH diligently conducts regular reviews and annual reporting on its advancements
in achieving measurable gender diversity objectives.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Parental Leave
Number of
employees
Entitled to
Parental Leave
Took Parental
Leave
Due to Return
Returned to
Work
Return Rate (%)
Female
Male
Total
37
406
443
19
56
75
0
0
0
19
56
75
100%
100%
100%
HONOURING CONTRIBUTIONS WITH EQUITABLE AND FAIR REMUNERATION
As fair remuneration and attractive benefits are paramount, we instituted a transparent process that evaluates employee performance
based on merit. Complying with the minimum wage regulations and advocating for a living wage to provide a sustainable income for
all workers supports economies and drives growth. Our Human Resources Team consistently reviews fixed compensation for full-time
employees, ensuring it surpasses minimum legal requirements and its alignment with our commitment to equitable and competitive
remuneration.
Examples of Employee Benefits
Leave:
Annual, maternity and paternity
Retirement benefits
Flexible working arrangements
Transportation and
accommodation
Allowances, subsidies and
reimbursements
Medical benefits
• General hospitalisation scheme
• General personal accident
• On-site healthcare facility and
treatment
• Yearly health check programme (for
employees who have served at least
one year)
• Panel clinic and in-house ambulance
Benefits Provided to Employees Based on Contract Type
Benefit
Australia
China
Malaysia
Singapore
Permanent &
Full-time
Contract
Permanent &
Full-time
Contract
Permanent &
Full-time
Contract
Permanent &
Full-time
Life Insurance
Not provided
Not provided
Provided
Provided
Not provided
Not provided
Provided
Medical Insurance
Not provided
Not provided
Provided
Provided
Provided
Provided
Provided
Parental Leave
N.A.
Recognition / Performance Review
Provided
N.A.
N.A.
Provided
Not provided
Provided
Not provided
Provided
Provided
Provided
Provided
Not provided
Provided
Contract
Provided
Provided
Provided
Provided
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT UNLOCKING POTENTIAL THROUGH TALENT ENRICHMENT
The Group’s expertise in handling manganese ore and ferroalloys is exceptional, and continuous training is required to maintain high
skill levels. Our customised group-level training helps employees acquire new skills, collaborate effectively and advance their careers,
providing every employee with opportunities for professional growth. We collaborate with local universities to tailor training content
for local operators, ensuring comprehensive development opportunities.
Examples of Internal and External Training Programmes in 2023
Rigging and
slinging
Fire safety
Radiation safety
awareness
ISO 17025:2017
Internal Audit
Risk management
and continuous
improvement
Basic knowledge of
chemical reactions
in producing
ferrosilicon and
manganese alloy
Overhead
crane training
programme
Machinery hazard
safety awareness
ISO14001:2015
and
ISO45001:2018
training
Thermal hazard
assessment
Understanding
wastewater
quality analysis in
industrial effluent
At our core, we believe in nurturing employees’ passions and ambitions. Our upskilling programs equip individuals with sought-after
skill sets, facilitating their professional development. These initiatives open gateways to burgeoning fields, ensuring sustained career
growth. Our commitment extends to providing diverse skill training and educational programmes, empowering trainees to take the
required steps forward in their career paths.
Gender
Employee Category
Total
Male
Female
C-Suite
Senior
Management
Middle
Management
Executive
Non-Executive
176,246.1
160,229.2
16,016.9
171.5
1,390.0
1,428.5
3,811.2
169,444.9
74.3
80.1
43.2
9.0
19.9
31.7
20.0
82.8
Total training
hours
Average
training
hours
The Company also commits to employees’ personal development through training and up-skilling opportunities, ensuring continuous
growth and skill enhancement within the organisation. Examples include IT literacy training, language leadership and effective
communication classes.
We are committed to alleviating youth unemployment by implementing apprenticeships and graduate programmes with local
universities. We have an ongoing collaboration with UNIMAS in a Certificate in Manufacturing Technology (Smelting) programme
that accepted the first batch of students in FY2022. Graduates from this programme have a well-rounded, holistic knowledge and
experience, including theoretical modules and industrial training. The programme will be accepting its second batch of students in
FY2024.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT ENGAGING EMPLOYEES
OMH fosters a united workforce, valuing collaboration and togetherness. Our commitment to employee engagement is evident
through diverse corporate activities and employee bonding sessions to cultivate a vibrant workplace. We organise various engagement
initiatives, including festive celebrations, to create a dynamic and inclusive environment where team members feel connected and
motivated.
Clockwise from top-left: OMS Annual Dinner 2023, OMS Staff Appreciation Dinner, OM Sarawak Dinner & Dance 2023 (bottom left and right)
HEALTH AND SAFETY
As the process of smelting and producing ferroalloys carries inherent risks and safety is our top priority. Our operations involve intricate
processes that demand continuous vigilance to prevent incidents and safeguard the well-being of all employees, contractors and third
parties. Our Occupational Health and Safety Policy prioritises safety across all managed operations and extends to all internal and
external stakeholders and contractors. We rigorously implement this policy as part of our commitment to continuous improvement
and reducing the health and safety impact.
Occupational Safety and Health Management Systems (“OSHMS”)
OMH ensures all OSHMS in its operating subsidiaries comply with national work health and
safety legislation, relevant codes of practice, and international standards. Our operations
undergo regular external audits and compliance checks to maintain stringent oversight. OM
Sarawak has achieved ISO 45001:2018 Occupational Health and Safety Management Systems
certification in FY2023.
The OSHMS includes periodic audits of the risk management process and subsequent
implementation of recommendations. Worker engagement in hazard reporting is encouraged
through daily toolbox briefings, bi-weekly production meetings, and quarterly Health and Safety
meetings.
A meticulous approach to managing risks involves identifying, assessing, monitoring and controlling hazards. Continually refining
safety procedures and performance fosters a safe environment for all employees and stakeholders involved in our business.
OM Sarawak has implemented a Stop Work Policy to protect workers from reprisals or discrimination. The policy outlines steps for
workers to cease work in the presence of imminent threats, notify superiors, address the issues, and resume work once concerns have
been adequately resolved. OM Sarawak management gives workers full support, the right to halt work without fear of reprisal and the
ability to address safety and health concerns before resuming work.
Our ultimate aim is to reduce workplace incidents, emphasising shared responsibility among all individuals for ensuring a safe
working environment.
Before engaging third-party contractors, we establish prevention plans, scrutinise work permits, and provide customised briefings and
safety training. We equip employees with Personal Protective Equipment (“PPE”) that meets the required standards. For instance, we
provide aluminised protective clothing and hand gloves to protect individuals from heat radiation and potential molten splash events.
Identifying and Minimising Workplace and Work-Related Hazards
We conduct health and safety risk assessments for new and existing operations and projects as part of our due diligence process. This
proactive approach identifies and mitigates potential health and safety hazards at the workplace.
OM Sarawak thoroughly evaluates all work activities following prescribed Hazard Identification, Risk Assessment, and Risk Control
(“HIRARC”) procedures. OM Sarawak has established, implemented, and maintains a robust process for hazard identification to
eliminate or control risks through the hierarchy of controls, including elimination, substitution, engineering controls, administrative
controls, and personal protective equipment. Individuals performing, facilitating, and reviewing the HIRARC undergo formal training to
ensure process proficiency.
We continuously monitor the effectiveness of control measures through inspections, maintenance log reviews, and discussions with
workers. Adequate supervision is essential to verify correct implementation. The risk management process is subject to review and
revision in response to incidents or when better controls are identified.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Incident Investigation and Corrective Action
OM Sarawak has established procedures for classifying, notifying and reporting work-related incidents within its controlled premises.
These protocols cover incident investigation methods, report production and preventative measures. The analysis of incidents helps
identify underlying causes, including incompatible procedures, training adequacy, process failures and communication gaps. Recording
corrective actions leads to improvements in revised HIRARC and Work Instructions, subject to regular reviews.
Health and Safety Compliance
Australia
• Despite being in care and maintenance, OMM, owns the Bootu Creek Mine in Northern Territory, Australia, must comply with
the Occupational Health and Safety (“OHS”) requirements in the Northern Territory Work Health and Safety (National Uniform
Legislation) Act 2011 that sets out the legislative health and safety requirements of a mine site and the activities associated with
mining.
Malaysia
• Our smelting operations in Sarawak, Malaysia, must comply with the Occupational Safety and Health Act 1994 and its regulations,
Guidelines and Code of Practices as enforced by DOSH under the Ministry of Human Resources Malaysia.
• We are also governed by the Factories and Machinery Act 1967, under which DOSH officers periodically inspect our lifting and
hoisting equipment, unfired pressure vessels and general installations in our Sarawak plant.
Two safety audits were conducted as part of the Safety Improvement and Management Hazards Campaign (“SIMHAC”) in FY2023.
•
Health and Safety Governance
OMH places safety at the core of its governance, exemplified through a
robust Safety Governance framework. This dedicated structure ensures
comprehensive oversight and application of safety protocols across
our operations. Top management leads our safety governance model,
integrating safety measures, compliance frameworks, risk management
strategies, and continual improvement initiatives.
OM Sarawak’s Health and Safety Committee meets on a quarterly
basis, facilitating collaboration among management and employees.
This committee, chaired by OM Sarawak’s Managing Director, General
Manager and Deputy General Manager of HSE and Sustainability,
develops, implements and monitors safety measures. With a balanced
representation of managerial and non-managerial staff, the committee
ensures a holistic approach to safety implementation and compliance. The
committee representative also reports key health and safety data to the OMH
Board on a quarterly basis.
Various Committee Functions
Developing
• Safety and
health rules and
procedures
Analysing
•
• Unsafe acts, conditions
Incident trends
or practices
Recommending
• Corrective action to
the management
• Any revisions to the
Occupational Safety
and Health Policy
Reviewing
• The effectiveness
of the Occupational
Safety and Health
Management System
• The Occupational
Safety and
Health
Policy
Medical Team
• Comprises professional medical personnel
• Organises health awareness talks and programmes for employees
• Provides 24-hour on-site treatment
Fire Protection and
Rescue Team
• Maintains the plant fire protection equipment
• Conducts emergency and fire drills
Emergency
Response Team
• Maintains a current and accurate accounting of emergency response activities
• Responds to accidents and incidents in accordance with the Emergency Response
Plan (“ERP”)
Recovery Team
• Monitors affected areas, such as asset damage by fire, hazardous chemical spillage,
natural disasters and structural failure
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Safety Training
The Group prioritises safety through comprehensive training, extending to employees, contractors, and all workers. Extensive coaching
is offered to all relevant employees and contractors, ensuring continual safety education. Additionally, regular safety refresher training
sessions are provided to reinforce a culture of safety and awareness across operations.
Safety display room at OM Sarawak, set-up in 2023, showcasing
OSHMS procedures and case studies
Mass toolbox session held for our drivers to instil a culture of
safety on-site
Type of Training
Safety Induction
Employees
Workers who are not employees
No. of Workers
No. of Training Sessions
No. of Training Hours
945
2,623
164
476
2,747
3,275
Internal OSH Training
Topics include conveyor belt safety training, machinery hazards safety awareness, forklift handling training, smelting front liner
refresher training, rigging and slinging training, noise exposure awareness, fire safety, chemical handling, confined space entry
training, Permit to Work training, Sinter plant safety training and overhead crane training
Employees
Workers who are not employees
1,636
27
100
16
4,009
41
External OSH Training
Topics include rigging and slinging training, National Institute of Occupational Safety and Health - OM Safety Passport (“NOMSP”)
training, Tripod Beta Incident Investigation, Construction Industry Development Board (“CIDB”) training, first aid, basic fire fighting
training (ERT), emergency response combined drill training, chemical spillage, electrical safety, lifting supervisor, radiation safety,
authorised gas tester and entry supervisor, HIRARC training and ISO 45001:2018 awareness
Employees
1,587
83
Total Training Hours
17,328
27,400
Safety and Performance
Safety Performance
Number of incidents
Fatalities (employees)
Fatalities (workers who are not employees)
Recordable* work-related injuries (employees)
Recordable* work-related injuries (workers who are not
employees)
Total hours worked
Manhours worked (employees)
Manhours worked (workers who are not employees)
Lost Time Incident Rate (LTIR)
LTIR (employees)
LTIR (workers who are not employees)
Overall LTIR
2021
2022
2023
1
0
5
0
0
0
4
1
0
0
23
11
3,459,559
3,661,227
4,851,389
201,035
1,952,825
3,881,454
Number
Number
Number
Number
Hours
Hours
No. per million manhours
No. per million manhours
No. per million manhours
1.45
0.00
0.72
1.09
0.51
0.80
4.74
2.83
3.79
Safety performance data for FY2023 included OM Sarawak, OMME and OMML. FY2021-2022 data included OM Sarawak only.
*Recordable incidents include fatalities
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Collaboration, Engagement and Other Safety Initiatives
Organising systematic, regular engagements with employees, vendors, contractors, suppliers and external organisations helps identify
and monitor potential OHS impacts. Various initiatives promote a collaborative safety and health culture.
OM Sarawak’s Dynamic
Alliance with NIOSH
OM Sarawak collaborated with NIOSH
to introduce the NIOSH-OM Safety
Passport (“NOMSP”) programme.
Initially trialled at the Plant in Q1
2023, the complete programme
officially launched in the second
quarter of 2023. 900 workers attended
the NOMSP induction in FY2023,
showcasing our continued commitment
to safety training and protocols.
Emergency Drills
In FY2023, we diligently executed six emergency drills, across a variety of scenarios, including fire evacuation, medical evacuation, oil
spillage control, and vehicular medical rescue. By incorporating a range of emergency scenarios into our safety regimen, we strive to
ensure comprehensive readiness and response.
Clockwise from top-left: fire evacuation drill; vehicular accident medical rescue; chemical spillage fire evacuation drill; medical rescue and oil spillage
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT OM Sarawak OHSE Week
OM Sarawak orchestrated the Occupational Health, Safety, and Environment (“OHSE”) Week from 10 to 14 July 2023, coinciding with
the State Level Occupational Health and Safety Week. Collaborating with external government agencies such as the Fire Department,
DOSH, DOE, and the National Anti-Drug Agency, the event encompassed diverse activities such as health talks, an emergency drill, a
fire awareness talk, safety awareness sessions and blood donation drives.
Occupational Health Services
Comprehensive worker health management involves various facets, including pre-employment health check-ups, health surveillance,
medical removal, health promotion, pre-placement medical exams, and ongoing monitoring of vulnerable groups. The medical team
actively engages in emergency response, and a designated first aid room, compliant with the Guidelines on First Aid in the Workplace (2nd
Edition), 2004, is available. Ensuring 24/7 availability, a dedicated medical personnel team supports the first aid facility, complemented
by two Type B ambulances. As a proactive measure, strategically placed Automated External Defibrillators (“AEDs”) enhance emergency
preparedness in densely populated buildings.
Workplace Health Promotion
OM Sarawak has appointed a panel clinic to provide workers easy access to non-work-related medical services, mainly focusing on minor
illnesses. OM Sarawak also initiated a health check-up programme for eligible employees, during which external medical providers
conduct comprehensive assessments, including blood and urine tests, chest X-rays, electrocardiograms, and physical examinations.
Occupational Health Doctors review the results and provide consultations based on the findings. OMS provides an annual on-site
health screening for all employees, which includes blood and urine tests.
SOCIETY
We create a brighter future in our communities. At the heart of our mission lies a commitment to nurturing relationships that empower
the community. Supporting the underprivileged cultivates a stronger, more inclusive society, fuelling collective growth and prosperity.
COMMUNITY RELATIONS
Exploration, mining, smelting, marketing, and trading are pivotal pillars for fostering sustainable community development, which
sparks positive economic and social transformations. OMH prioritises respectful engagement with local communities, always mindful
of its role as temporary visitors in diverse international landscapes. We meticulously balance economic, environmental, and social
considerations throughout all project phases.
The Company operates under a guiding Community Relations Policy, acting as a framework that shapes our engagements and
collaborations within society, fostering positive and responsible interaction. OMH fulfils its community relations objectives by:
•
•
•
•
•
•
•
•
•
•
•
Following the laws and regulations of host countries;
Considering how our decisions impact the community;
Respecting and responding to local customs, traditions and cultures unless they conflict with OMH policies and standards;
Contributing to the economic development of local communities;
Being open and transparent in all communications and dealings with local communities and responding in a timely fashion to
any community-based grievances;
Establishing grievance mechanisms for all stakeholders where community-related complaints can be received and addressed;
Investing in projects that are mutually beneficial to OMH and the local community;
Ensuring that any unavoidable resettlement complies with local laws and such that resettled parties are constructively engaged
and fairly treated with the principles of free prior informed consent and consultation;
Embracing sound principles of local procurement and employment practices that contribute to local economic development;
Encouraging, where practical, suppliers and contractors to adopt the same or similar policies, standards and practices; and
Undertaking activities that help ensure the local operating company remains a responsible community member.
OMH – COMMUNITY RELATIONS POLICY
We place a high value on volunteering within our organisation, acknowledging its considerable impact on our internal culture and the
communities we engage with. We sincerely appreciate individuals who generously contribute their time and skills, fostering a culture
of community engagement and shared responsibility for creating positive change.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT OM Sarawak’s strategic sponsorship garnered global exposure
for the brand, enhancing
international recognition among
industry leaders. This initiative aligns with our commitment to
global engagement, innovation, and corporate responsibility.
Empowering Students to Soar
The Group supports children’s rights to education in alignment
with its commitment towards the Children’s Rights and Business
Principles. OM Sarawak recently organised the ‘Empowering
Students to Soar’ event across multiple schools, including SMK
Bandar Bintulu, SK Kampung Nyalau, SK Sungai Bukit Balai, and
SK Kuala Nyalau. This ongoing effort underscores our dedication
to community empowerment and education.
SPONSORSHIP, DONATION AND COMMUNITY
GIVING
Our commitment to making a difference extends beyond financial
contributions as we actively engage as a community partner.
OMH’s contributions, donations, and sponsorships are intricately
linked with our business strategy, aligning with targeted focus
areas to amplify our positive impact on communities and
reinforce our commitment to social responsibility. We collaborate
with organisations dedicated to educating and supporting the
underprivileged, particularly emphasising our impactful initiatives
during the festive season, where generosity flourishes.
Our community investments focus on specific, well-defined
areas such as education, welfare and community well-being.
We carefully choose these areas to address key needs or
opportunities, enabling us to make a meaningful impact. By
strategically directing our resources, we aim to maximise
positive outcomes and contribute to sustainable change in the
communities we serve.
During the year, the Group’s cumulative donations of more
than USD180,000 underscore our dedication to creating lasting
positive change in the communities we serve. In this section, we
would like to highlight some notable contributions.
Sponsor for the Upgrading of Bintulu General
Hospital
OM Sarawak expresses gratitude for the services provided by
Bintulu General Hospital and highlights a RM17,620 sponsorship to
enhance healthcare capabilities. This support improves facilities,
acquires advanced medical equipment, and elevates patient care
standards, reinforcing the regional healthcare infrastructure.
The contribution represents an investment in healthcare and
showcases OM Sarawak’s unwavering commitment to social
responsibility.
Trade Nexus: Navigating the Digital Age with
Innovation
OM Sarawak proudly sponsored WCIT|IDECS 2023, a leading
global platform in the information technology industry since
1978. The event took place from 4 to 6 October 2023 at Borneo
Convention Centre Kuching, making it the largest international
event with unparalleled opportunities
trade
connections. The total sponsorship amounted to RM530,000.
for global
WCIT, a renowned international event, facilitates global trade
connections and attracts industry experts, policymakers, and
entrepreneurs globally. Simultaneously,
IDECS, a Sarawak
Government-led conference, aligns with the UNSDGs, focusing
on financial well-being, societal equity, and ecological health to
drive progress in the digital age.
Key activities comprised a donation drive, career talks, and
environmental awareness initiatives. The event yielded positive
outcomes by providing valuable insights into career paths
and fostering environmental responsibility. Additionally, the
contributions totalling RM134,040 catered to immediate needs,
providing students with essential tools for academic success.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT HUMAN RIGHTS
OMH operates in line with the Universal Declaration of Human Rights (“UDHR”), the United Nations Guiding Principles on Human
Rights, the International Bill of Human Rights and the OECD Responsible Business Conduct guidelines:
•
•
The UDHR, a global human rights standard established in 1948, promotes equality and dignity for all individuals.
The OECD integrates human rights considerations, ensuring respect for human rights and conducting due diligence across
value chains to prevent adverse impacts.
The Board oversees human rights, allocating clear day-to-day responsibilities and resources to relevant functions. Human rights
expectations are communicated transparently to stakeholders, including business partners.
Formalising its commitment, OMH implements a comprehensive Human Rights Policy, ensuring respect for stakeholders’ rights,
preventing violations, and committing to:
•
•
•
•
•
•
•
Respect the rights and dignity of employees, partners, local communities, and all affected by OMH’s operations;
Provide equal opportunities and foster a discrimination-free environment concerning race, religion, gender, age, sexual
orientation, disabilities and nationality;
Support the principles of freedom of association and collective bargaining;
Reject forced, compulsory, or child labour;
Careful verification of identifications while ensuring that we do not retain any such documentation as a proactive measure to
prevent child and forced labour within the Company;
Ensure a secure environment for business operations to safeguard personnel and assets; and
Commit to a living wage and exceed minimum wage standards
OMH – HUMAN RIGHTS POLICY
OMH conducts training and awareness sessions on this policy as needed. All employees and stakeholders must adhere to the terms
of the Human Rights Policy and report any incidents or violations to management. The Executive Chairman/Chief Executive Officer is
accountable to the Board for ensuring the effective implementation of this policy.
Our commitments regarding human rights encompass various facets, including ensuring equality and preventing discrimination,
providing fair wages, maintaining reasonable working hours, supporting fair employee representation, ensuring security, offering
primary health care, upholding labour rights within our supply chain, and engaging in informed consultation processes.
We place particular emphasis on assessing and addressing the impact of our operations on the human rights of vulnerable groups,
notably indigenous populations, women, and children. Additionally, the Company participates in initiatives to improve labour standards
and address specific topics within the industry.
The Company supports and respects where applicable international human rights guidance documentation and seeks to conduct its
businesses in accordance with the relevant spirit and intent. This includes concepts such as equal pay for equal work that compensates
employees fairly and impartially, as well as elimination of excessive working hours.
At OM Sarawak, we ensure strict compliance with the Group’s Labour Policy, which prohibits the employment of children and young
persons. As per the Sarawak Labour Ordinance, a ‘child’ is identified as an individual under 15 years old, while ‘young persons’
encompass those above 15 but below 18 years of age. We ensure that our suppliers, business associates, and all involved parties
refrain from employing child or forced labour in their operations.
We systematically and proactively evaluate the impact of our operations on human rights as an integral part of our core business
processes. We have implemented several key actions to prevent potential human rights issues.
As a part of our due diligence in managing human rights risks across our value chain, we identify and evaluate risks associated with
CAHRAs. This comprehensive assessment enables us to adopt a collaborative approach to mitigate these human rights risks throughout
the supply chain.
Furthermore, since 2018, all raw material suppliers must furnish a Declaration Letter of Compliance. This declaration verifies adherence
to sustainable practices and confirms the absence of child and forced labour within their operations. This mandatory requirement
ensures that our suppliers align with our commitment to ethical and responsible practices, fostering a sustainable and conscientious
supply chain ecosystem.
OMH has a grievance mechanism to address and rectify any identified human rights concerns. Instituting formal mechanisms to
address human rights explicitly provides confidentiality to internal and external stakeholders. The Company has also introduced
mechanisms such as regular engagement to allow employee representatives to engage with management. We remedy situations if we
have caused or contributed to human rights impacts.
In FY2023, there were no substantiated complaints concerning incidents of discrimination or human rights violations, including
violations of the rights of Indigenous peoples.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Addressing Salient Human Rights Issues in the Mining Sector
Security guard issues are one of the salient human rights concerns in the mining sector. It is of utmost importance that security
practices are aligned with international standards, such as the Voluntary Principles on Security and Human Rights, whereby human
rights, risk assessments, proper training and transparency are emphasised. Bootu Creek Mine is situated over 110km north of Tennant
Creek in the Northern Territory of Australia. As it is located far from any settlements or towns, OMM does not hire security guards for
the mine site.
Another salient human rights issue identified in the mining sector is the rights of Indigenous communities. We adhere to principles
dedicated to protecting and respecting their rights. We commit to conducting informed consultations and obtaining prior informed
consent to demonstrate our commitment to their well-being.
We pledge to actively engage stakeholders to identify and address these salient human rights issues. Our commitment involves
fostering collaboration, gathering insights and implementing effective measures to ensure the well-being and rights of all individuals
involved.
OPERATING RESPONSIBLY
Prioritising responsible operations at OMH focuses on continual improvement for sustained competitiveness and long-term
sustainability. We conducted a thorough ‘cradle-to-gate’ LCA of our manganese alloys, in collaboration with IMnI, as well as our
ferrosilicon alloys. The detailed assessment meticulously examined our environmental impact from extraction to processing (smelting),
shedding light on our ecological footprint and enabling comparisons with industry counterparts. These insights empower our regional
steel mill clients to make informed, eco-conscious choices, bolstering sustainability within their supply chains. Our commitment to
responsible operations is entrenched in minimising impact while maximising value creation across our operational landscape.
PRODUCT SAFETY
Product safety
is paramount, especially
concerning our range of products, including
ferrosilicon, silicomanganese, and high-carbon
to stringent
ferromanganese. To adhere
safety standards, we subject our products to
rigorous testing in accordance with the “United
Nations Recommendations on the Transport of
Dangerous Goods, Manual of Tests and Criteria
Part III – 33.4.1.4”. While our products are not
classified as Class 4.3 Dangerous Goods, we
remain committed to ensuring comprehensive
safety measures for our employees.
Our safety protocols encompass various facets,
including provisions for first-aid, firefighting,
and safe handling and storage practices.
Meticulously
initiatives
safeguards the well-being of our workforce
and upholds the highest safety standards
within our operations. We regularly provide
customers with an updated product safety
information sheet. Even though our products
are not hazardous goods, this sheet offers
precise instructions for third parties and customers, ensuring safe handling and storage. It encompasses extensive details such as
product classification, composition, handling instructions, first-aid protocols, firefighting procedures, accidental release guidelines,
exposure controls, stability and reactivity information, toxicological and ecological insights, disposal recommendations, and regulatory
specifics. This comprehensive document facilitates proper product management and ensures safety across all stages of handling and
usage.
implementing these
In FY2023, there were no incidents of non-compliance concerning the health and safety impacts of OMH’s products and services, and
product and service information labelling.
PRODUCT QUALITY
At OM Sarawak, our Quality Inspection Center (“QIC”) is the custodian of product quality management within our smelting plant. This
dedicated unit established and maintains the quality control management system. Its responsibilities encompass vigilant oversight of
weighing, sampling and issuing detailed analysis reports for incoming feedstock and finished products.
The QIC plays a crucial role in our operations by ensuring rigorous quality checks and adherence to set standards. Moreover, it efficiently
categorises natural blocks based on their grade and facilitates their allocation to the designated crushing areas. This meticulous
approach underscores our commitment to delivering consistent and superior-quality products throughout our production processes.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Quality and Inspection Procedures For Raw Materials and Finished Products
Raw materials
•
The QIC samples and analyses all raw materials upon arrival and sends the analysis report to the Raw Materials
Warehouse (“RMW”) and relevant departments
• A third-party surveyor performs additional sampling and analysis at the loading and discharging port to ensure the
accuracy of product volumes and tracking of any variances recorded.
Finished product
•
The QIC takes ladle sampling, analyses and grades the natural block from each tapping. Different grades are
processed separately based on product grading. The QIC inspects the crushing process to ensure quality.
• Third-party surveyors conduct sampling and analysis before shipping
At the OM Sarawak plant, the QIC staff includes lab technicians, five of whom are chemists registered by the Department of Chemistry,
Malaysia. Product testing performed by the QIC involves advanced equipment, such as the X-ray Fluorescence Spectrometer (“XRF”)
and the Inductively Coupled Plasma Spectrometer (“ICP”), among other sophisticated instruments.
CYBERSECURITY AND DATA PRIVACY
Our foremost commitment is to secure the confidentiality and safety of data entrusted to our Company by customers, employees and
other stakeholders. We enforce robust Data Protection and Privacy practices throughout the Group, establishing a sturdy framework
for safeguarding valuable information assets. In FY2023, we received no substantiated complaints concerning breaches of customer
privacy.
Regular employee training and communication updates our workforce on emerging cyber threats and provides refresher courses on
Company policies. This proactive approach ensures that our employees stay informed and equipped to uphold the pinnacle of data
security and privacy standards within the organisation.
Our robust cybersecurity infrastructure includes an upgraded firewall, mandatory password resets for email accounts every six months,
automatic synchronization and backup of files from company servers to cloud servers, Two-Factor Authentication for emails, Microsoft
Defender, routine IT maintenance, data backup to secure cloud servers, controlled removable device access, and the deployment of
Endpoint Security Software. Additionally, we have enlisted a professional cybersecurity firm to conduct penetration tests and have
implemented remediation advice based on completed reports. This comprehensive setup strengthens our digital defences and shields
our systems against cyber threats.
7878
O M H O L D I N G S L I M I T E D | A N N UA L R E P O R T 2 0 2 3
OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT GROUP SUSTAINABILITY PERFORMANCE DATA
Climate Change and Energy Management
Greenhouse Gas Emissions1
Scope 1
Scope 2
Scope 3
- Category 1: Purchased goods and services
- Category 2: Capital goods
- Category 3: Fuel- and energy-related activities not
included in Scope 1 or Scope 22
- Category 4: Upstream transportation and distribution
- Category 5: Waste generated in operations
- Category 6: Business travel
- Category 7: Employee commuting
- Category 10: Processing of sold products3
- Category 15: Investments
Greenhouse Gas Emissions Intensity4
Ferrosilicon5
Manganese Alloy
Energy Consumption (within the organisation)
Electricity
Diesel
Gasoline
Energy Intensity
Ferrosilicon
Manganese Alloy
Kilotonnes CO2e
Kilotonnes CO2e
Kilotonnes CO2e
Kilotonnes CO2e
Kilotonnes CO2e / tonne
Kilotonnes CO2e / tonne
Thousand GJ
Thousand GJ
Thousand GJ
Thousand GJ
GJ / tonne
GJ / tonne
2021
2022
2023
1,137.08
1,187.15
1,759.23
724.00
413.08
759.51
1,031.36
427.64
495.49
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5.66
2.50
6.10
2.20
232.38
128.56
5.44
0.00
63.79
0.01
0.14
2.29
14.83
17.31
5.94
2.23
7,575.08
7,835.46
9,042.43
7,510.48
7,775.28
8,963.63
64.60
60.18
-
-
31.97
13.89
31.78
13.86
78.72
0.09
32.17
13.21
Aggregate data from OM Sarawak, OMS and OMML. Data may not add up to the total due to rounding differences.
1. GHG Emissions: 2023 - verification by BSI Services Malaysia (reasonable, 10%) for OM Holdings Ltd. Reporting scopes: Scopes 1, 2 and 3.
GHG gases included: CO2 , CH4 , N2O, HCFCs, HFCs. Organisational boundary: OM Sarawak, OMS, OMML. 2022 - verification by BSI Services
Malaysia (reasonable 10%) for OM Sarawak. Reporting scopes: Scope 1, 2 and 3 (employee commuting only). 2021 - reporting boundary:
OM Sarawak. Reporting scopes: Scope 1 and 2.
2. Category 3: upstream emissions of electricity generation for OM Sarawak & OMML were accounted for under Scope 2. T&D loss data was
unavailable for OM Sarawak & OMML. Category 3 emissions from OMS were negligible.
3. Category 10: consists of carbon content in the alloys sold, which would be released during the steel-making process. Emissions arising from
electricity used to process the alloys during steel-making were not included. The emissions were deemed to be insignificant (<1% of Scope
3 emissions) and reliable emission factors were not available.
4. GHG Emissions Intensity consists of Scope 1 and 2 emissions. Calculation is based on SEB’s published grid emission factor. For 2021-2022,
the grid emission factor of 0.198 tCO2e/MWh was used. For 2023, the grid emission factor of 0.199 tCO2e/MWh was used.
5. Emissions intensity for FeSi for 2021 and 2022 have been restated due to (a) updated grid emission factor from SEB of 0.198 tCO2e/MWh
(2021), (b) inclusion of emissions from CH4 released during production.
O M H O L D I N G S L I M I T E D | A N N UA L R E P O R T 2 0 2 3
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT SUSTAINABILITY STATEMENT
2021
2022
2023
Emissions Management
Non-Greenhouse Gas Emissions
Ozone-depleting substances (ODS)
Kilotonnes of CFC-11-eq
0.02
0.03
Nitrogen oxides (NOx)1
Sulfur oxides (SOx)1
Particular matter (PM10)
Aggregate data from OM Sarawak, OMME and OMML
1. Reporting of NOx and SOx emissions commenced in 2023
Towards Zero Waste and Circularity
Raw Material Use
Manganese ore
Mill scale
Quartz
Reductants
Electrode paste
Waste Management
Total waste generated
Scheduled waste generated
Solid waste generated
Total waste diverted from disposal
Scheduled waste prepared for onsite reuse
Scheduled waste sent for offsite recycling
Solid waste sent for offsite recycling
Total waste directed to disposal
Scheduled waste directed to disposal
Solid waste sent for offsite landfilling
Recycled input materials used
Total slag recycled
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Kilotonnes
Percentage
Kilotonnes
-
-
-
-
0.19
0.13
0.03
0.94
759.64
0.13
2021
2022
2023
971.68
1,168.46
407.62
493.08
933.59
399.68
40.80
250.02
233.04
10.04
44.22
266.72
242.31
10.82
148.97
148.76
151.31
150.96
0.21
0.20
-
0.01
0.20
20.77
20.56
0.21
12.2
0.35
1.81
-
0.02
1.79
18.49
18.14
0.35
11.5
43.03
336.29
283.58
12.48
174.91
174.60
0.31
110.30
110.00
0.03
0.28
16.22
15.91
0.31
13.2
113.63
111.83
154.73
Aggregate data from OM Sarawak, OMME and OMML. Data may not up add to the total due to rounding differences.
Water Management
Total water withdrawal (third-party water, freshwater)
Megalitres
1,196.54
1,318.89
1,668.02
Total water discharge (surface water)
Total water consumption
Megalitres
Megalitres
16.41
10.73
20.14
1,180.12
1,308.16
1,647.89
2021
2022
2023
Aggregate data from OM Sarawak, OMME and OMML. Data may not up add to the total due to rounding differences.
80
8080
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81
OM HOLDINGS LIMITED | ANNUAL REPORT 2021 Health and Safety
Occupational Safety and Health Management System (OSHMS)
Workers covered by OSHMS that has been audited by an external party1
Employees
Workers who are not employees
Safety Performance2
Fatalities as a result of work-related injury
Fatalities (employees)
Rate of fatalities (employees)
Number
Number
Number
No. per million manhours
Fatalities (workers who are not employees)
Number
Rate of fatalities (workers who are not employees)
No. per million manhours
High-consequence work-related injuries (excluding fatalities)
High-consequence work-related injuries (employees)
Number
Rate of high-consequence work-related injuries
(employees)
No. per million manhours
High-consequence work-related injuries (workers who
are not employees)
Number
2021
2022
2023
-
-
-
-
1,605
741
1
0.29
0
0.00
0
0.00
0
0
0.00
0
0.00
1
0.27
0
0
0.00
0
0.00
1
0.21
0
Rate of high-consequence work-related injuries (workers
who are not employees)
Recordable work-related injuries3
No. per million manhours
0.00
0.00
0.00
Recordable work-related injuries (employees)
Number
Rate of recordable work-related injuries (employees)
No. per million manhours
Recordable work-related injuries (workers who are not
employees)
Number
Rate of recordable work-related injuries (workers who
are not employees)
No. per million manhours
5
1.45
0
0.00
4
1.09
1
0.51
23
4.74
11
2.83
Total hours worked
Manhours worked (employees)
Manhours worked (workers who are not employees)
Lost Time Incident Rate (LTIR)
Hours
Hours
3,459,559
3,661,227
4,851,389
201,035
1,952,825
3,881,454
LTIR (employees + workers who are not employees)
No. per million manhours
0.72
0.80
3.79
Fatalities as a result of work-related ill health
Fatalities (employees)
Fatalities (workers who are not employees)
Recordable work-related ill health
Recordable work-related ill health (employees)
Recordable work-related ill health (workers who are not
employees)
Safety Training3
Safety Induction
No. of participants (employees)
No. of participants (workers who are not employees)
Internal OSH Training
No. of participants (employees)
No. of participants (workers who are not employees)
External OSH Training
No. of participants (employees)
Aggregate data from OM Sarawak, OMME and OMML
Number
Number
Number
Number
Number
Number
Number
Number
Number
0
0
0
0
-
-
-
-
-
0
0
0
0
-
-
-
-
-
0
0
0
0
945
2,623
1,636
27
1,857
1. OM Sarawak achieved ISO 14001 certification in 2023
2.
3. Data disclosure by worker type (employees and workers who are not employees) commenced in 2023. In 2021-2022, aggregate data was reported.
Safety performance data for 2023 included OM Sarawak, OMME and OMML. 2021-2022 data included OM Sarawak only.
80
O M H O L D I N G S L I M I T E D | A N N UA L R E P O R T 2 0 2 3
O M H O L D I N G S L I M I T E D | A N N UA L R E P O R T 2 0 2 3
81
81
OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT SUSTAINABILITY STATEMENT
Our People
Workforce
Total number of employees
Percentage of employees that are contractors or
temporary staff
New employee hires
New hire rate1
Employee turnover
Employee turnover rate
Breakdown of Workforce by Gender and Age Group1
C-Suite
Female
Male
<30 years
30-50 years
>50 years
Senior Management
Female
Male
<30 years
30-50 years
>50 years
Middle Management
Female
Male
<30 years
30-50 years
>50 years
Executive
Female
Male
<30 years
30-50 years
>50 years
Non-Executive
Female
Male
<30 years
30-50 years
>50 years
Senior Management Hired from the Local Community1
Australia
China
Malaysia
Singapore
Breakdown of Directors by Gender
Female
Male
Number
Percentage
Number
Percentage
Number
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
2021
2022
2023
2,086
-
297
-
493
23.6
1,990
24.1
553
-
733
36.8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28.6
71.4
33.3
66.7
2,372
20.4
784
40.1
475
22.0
21.1
78.9
0
26.3
73.7
18.6
81.4
0
71.4
28.6
28.9
71.1
4.4
75.6
20.0
37.7
62.3
30.4
63.4
6.3
13.1
86.9
53.4
39.8
6.7
100.0
100.0
89.7
100.0
33.3
66.7
82
8282
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83
OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT Training Hours
Average training hours
Total training hours
Training Hours by Employee Category1
C-Suite
Senior Management
Middle Management
Executive
Non-Executive
Other Workers1
Hours
Hours
Hours
Hours
Hours
Hours
Hours
46.6
60.9
74.3
74,510.0
93,680.0
176,246.1
-
-
-
-
-
-
-
-
-
-
171.5
1,390.0
1,428.5
3,811.2
169,444.9
Workers who are not employees
Number
-
-
56
1. Data disclosure commenced in 2023.
Society
2021
2022
2023
Total amount invested in the community
US Dollars
92,770
17,000
182,911
Sustainable Economic Growth
Financial assistance received from government1
US Dollars
-
-
116,350
2021
2022
2023
1. Data disclosure commenced in 2023. Consists of financial assistance received in the form of subsidies for training.
Sustainable Supply Chain
Supplier Location
Local suppliers engaged
Foreign suppliers engaged
Purchase Location
Local supplier purchases
Foreign supplier purchases
Supplier Environmental and Social Assessment
No. of existing suppliers1
Aggregate data for OMM, OM Sarawak and OMQ
Percentage
Percentage
Percentage
Percentage
Number
2021
2022
2023
94.3
5.7
6.5
93.5
93.7
6.3
12.0
88.0
92.3
7.7
10.3
89.7
-
-
8
1.
The Supplier Environmental and Social Assessment was first conducted in FY2023 for all primary suppliers of the Company. The assessment was conducted for
all major Mn ore producers that the Company regularly purchases from, and the main supplier for each bulk raw material.
Operating Ethically and Responsibly
Anti-Bribery and Corruption
No. of confirmed incidents of corruption
Number
Human Rights
No. of substantiated complaints concerning human
rights violations
Number
Data Privacy and Cybersecurity
No. of substantiated complaints concerning breaches of
customer privacy and losses of customer data
Number
Marketing and Labelling
No. confirmed incidents of non-compliance regarding
marketing communications
Number
2021
2022
2023
0
0
0
0
0
0
0
0
0
0
0
0
82
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83
83
OM HOLDINGS LIMITED | ANNUAL REPORT 2021SUSTAINABILITY STATEMENT GRI CONTENT INDEX
Statement of use
: OM Holdings Limited has reported in accordance with the GRI Standards for the period 1
GRI 1 used
: GRI 1: Foundation 2021
January 2023 to 31 December 2023.
Applicable GRI Sector Standard(s) : OMH intends to report in accordance with the GRI 14: Mining Sector 2024 standard when
it comes into effect, where applicable to our operations, and adopt the sector standard for
Metals Processing, once it is available
CODE
DISCLOSURE
General disclosures
GRI 2: General Disclosures 2021
Organisational details
Entities included in the organisation's sustainability reporting
Reporting period, frequency and contact point
Restatements of information
External assurance
Reference /
Reason for Omission
8, 9
36
36
Energy intensity for FeSi, disclosed
on pg 57-58, 79
The Sustainability Statement has
not undergone verification by an
external assurer. However, it was
reviewed by the management
and approved by the Board. OMH
engaged BSI Services Malaysia to
provide independent verification
of GHG emissions, disclosed on pg
36, 56-57.
Activities, value chain and other business relationships
Employees
Workers who are not employees
8-12
65-66, 82-83
83
Governance structure and composition
44, 91, 93-96, 98-99
Nomination and selection of the highest governance body
Chair of the highest governance body
Role of the highest governance body in overseeing the management of
impacts
Delegation of responsibility for managing impacts
Role of the highest governance body in sustainability reporting
Conflicts of interest
Communication of critical concerns
Collective knowledge of the highest governance body
Evaluation of the performance of the highest governance body
Remuneration policies
Process to determine remuneration
Annual total compensation ratio
96
91-93
44, 93-94
44, 94
44
94
100
92
103-104
104
103-104
Information on the Executive
Director’s compensation can be
found in the Corporate Governance
section, on pg 103.
Statement on sustainable development strategy
Policy commitments
Embedding policy commitments
Processes to remediate negative impacts
42-43
49-51, 76
49-51, 76
51
2-1
2-2
2-3
2-4
2-5
2-6
2-7
2-8
2-9
2-10
2-11
2-12
2-13
2-14
2-15
2-16
2-17
2-18
2-19
2-20
2-21
2-22
2-23
2-24
2-25
84
O M H O L D I N G S L I M I T E D | A N N UA L R E P O R T 2 0 2 3
SUSTAINABILITY STATEMENT GRI CONTENT INDEX
CODE
DISCLOSURE
Reference /
Reason for Omission
2-26
2-27
2-28
2-29
2-30
Mechanisms for seeking advice and raising concerns
51
Compliance with laws and regulations
48-51, 59, 61, 63-64, 68, 70-71
Membership associations
Approach to stakeholder engagement
Collective bargaining agreements
48
37
Refer to OMH's Human Rights
Policy, as linked on page 76
Material Topics
GRI 3: Material Topics 2021
3-1
3-2
Process to determine material topics
List of material topcs
Sustainable Economic Growth
GRI 3: Material Topics 2021
3-3
Management of material topics
GRI 201: Economic Performance 2016
201-1
201-2
201-3
201-4
Direct economic value generated and distributed
Financial implications and other risks and opportunities due to climate
change
Defined benefit plan obligations and other retirement plans
Financial assistance received from government
GRI 203: Indirect Economic Impacts 2016
203-1
203-2
Infrastructure investments and services supported
Significant indirect economic impacts
GRI 207: Tax 2019
Approach to tax
Tax governance, control, and risk management
207-1
207-2
207-3
207-4
37-38
38-41
44, 46-48
42-43, 115
52-54
68
83
60, 75
74-75
48
120-121
Stakeholder engagement and management of concerns related to tax
102
Country-by-country reporting
114-115, 117, 138, 146, 162, 166-
168
Responsible Supply Chain
GRI 3: Material Topics 2021
3-3
Management of material topics
44-45, 48-50
GRI 204: Procurement Practices 2016
204-1
Proportion of spending on local suppliers
GRI 308: Supplier Environmental Assessment 2016
308-1
308-2
New suppliers that were screened using environmental criteria
Negative environmental impacts in the supply chain and actions taken
GRI 414: Supplier Social Assessment 2016
414-1
414-2
New suppliers that were screened using social criteria
Negative social impacts in the supply chain and actions taken
50, 83
49, 83
49, 83
49, 83
49, 83
O M H O L D I N G S L I M I T E D | A N N UA L R E P O R T 2 0 2 3
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OM HOLDINGS LIMITED | ANNUAL REPORT 2021 GRI CONTENT INDEX
CODE
DISCLOSURE
Ethics and Compliance
GRI 3: Material Topics 2021
Reference /
Reason for Omission
3-3
Management of material topics
44-45, 50-51
GRI 205: Anti-Corruption 2016
205-1
205-2
205-3
Operations assessed for risks related to corruption
50-51
Communication and training about anti-corruption policies and procedures
50-51
Confirmed incidents of corruption and actions taken
50-51, 83
GRI 206: Anti-Competitive Behaviour 2016
206-1
Legal actions for anti-competitive behaviour, anti-trust, and monopoly
practices
GRI 415: Public Policy 2016
415-1
Political contributions
Climate Change and Energy Management
GRI 3: Material Topics 2021
50
51
3-3
Management of material topics
44-45, 54-58
GRI 302: Energy 2016
302-1
302-2
302-3
302-4
302-5
Energy consumption within the organisation
Energy consumption outside of the organisation
Energy intensity
Reduction of energy consumption
Reductions in energy requirements of products and services
GRI 305: Emissions 2016
305-1
305-2
305-3
305-4
305-5
Direct (Scope 1) GHG emissions
Energy indirect (Scope 2) GHG emissions
Other indirect (Scope 3) GHG emissions
GHG emissions intensity
Reduction of GHG emissions
57-58, 79
57-58, 79
58, 79
58, 79
58, 79
56-57, 79
56-57, 79
56-57, 79
56-57, 79
OMH has identified FY2023 as
the base year, and will report
on GHG emissions reductions
in subsequent years, where
applicable.
Non-GHG Emissions Management
GRI 3: Material Topics 2021
3-3
Management of material topics
44-45, 58-59
GRI 305: Emissions 2016
305-6
305-7
Emissions of ozone-depleting substances (ODS)
80
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions
80
Towards Zero Waste and Circularity
GRI 3: Material Topics 2021
3-3
Management of material topics
44-45, 61-63
86
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 CODE
DISCLOSURE
GRI 301: Materials 2016
301-1
301-2
301-3
Materials used by weight or volume
Recycled input materials used
Reclaimed products and their packaging materials
GRI 306: Waste 2020
306-1
306-2
306-3
306-4
306-5
Waste generation and significant waste-related impacts
Management of significant waste-related impacts
Waste generated
Waste diverted from disposal
Waste directed to disposal
Water and Effluent Management
GRI 3: Material Topics 2021
GRI CONTENT INDEX
Reference /
Reason for Omission
80
80
OMH's sold products are
intermediary products used
primarily in steel-making. As
such, it is not practical to reclaim
our products. However, OMH
procures mill scale from steel mills
as raw materials to produce new
ferroalloys.
61-62, 80
61-62
80
80
80
3-3
Management of material topics
44, 63
GRI 303: Water and Effluents 2018
303-1
303-2
303-3
303-4
303-5
Interactions with water as a shared resource
Management of water discharge-related impacts
Water withdrawal
Water discharge
Water consumption
Biodiversity
GRI 3: Material Topics 2021
63
63
80
80
80
3-3
Management of material topics
44-45, 59-60, 64
GRI 304: Biodiversity 2016
304-1
304-2
304-3
304-4
Operational sites owned, leased, managed in, or adjacent to, protected areas
and areas of high biodiversity value outside protected areas
59
Significant impacts of activities, products and services on biodiversity
59, 64
Habitats protected or restored
IUCN Red List species and national conservation list species with habitats in
areas affected by operations
60
59
Health and Safety
GRI 3: Material Topics 2021
3-3
Management of material topics
44-45, 70-74
GRI 403: Occupational Health and Safety 2018
403-1
403-2
403-3
Occupational health and safety management system
Hazard identification, risk assessment, and incident investigation
Occupational health services
70-71
70-71
70-71, 74
87
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 GRI CONTENT INDEX
CODE
DISCLOSURE
Reference /
Reason for Omission
Worker participation, consultation, and communication on occupational
health and safety
70-71
Worker training on occupational health and safety
Promotion of worker health
Prevention and mitigation of occupational health and safety impacts directly
linked by business relationships
72-74, 81
73-74
70, 73-74
Workers covered by an occupational health and safety management system
71, 81
Work-related injuries
403-10
Work-related ill health
Our People
GRI 3: Material Topics 2021
3-3
Management of material topics
44-45, 64-70
GRI 202: Market Presence 2016
202-1
Ratios of standard entry level wage by gender compared to local minimum
wage
OMH complies with all local
regulations, including local
minimum wage laws
202-2
Proportion of senior management hired from the local community
82
GRI 401: Employment 2016
New employee hires and employee turnover
66, 82
Benefits provided to full-time employees that are not provided to temporary
or part-time employees
403-4
403-5
403-6
403-7
403-8
403-9
401-1
401-2
401-3
Parental leave
GRI 402: Labour/ Management Relations 2016
402-1
Minimum notice period regarding operational changes
GRI 404: Training and Education 2016
404-1
404-2
404-3
Average hours of training per year per employee
Programmes for upgrading employee skills and transition assistance
programmes
Percentage of employees receiving regular performance and career
development reviews
GRI 405: Diversity and Equal Opportunity 2016
405-1
405-2
Diversity of governance bodies and employees
Ratio of basic salary and remuneration of women to men
GRI 406: Non-discrimination 2016
406-1
Incidents of discrimination and corrective actions taken
GRI 407: Freedom of Association and Collective Bargaining 2016
407-1
Operations and suppliers in which the right to freedom of association and
collective bargaining may be at risk
Our Communities
GRI 3: Material Topics 2021
3-3
Management of material topics
44, 74-77
88
72, 81
81
68
68
64
69, 83
69
67
65, 82
67, 76
76
76
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 CODE
DISCLOSURE
GRI 408: Child Labour 2016
GRI CONTENT INDEX
Reference /
Reason for Omission
408-1
Operations and suppliers at significant risk for incidents of child labour
49, 76
GRI 409: Forced or Compulsory Labour 2016
409-1
Operations and suppliers at significant risk for incidents of forced or
compulsory labour
49, 76
GRI 410: Security Practices 2016
410-1
Security personnel trained in human rights policies or procedures
GRI 411: Rights of Indigenous Peoples 2016
411-1
Incidents of violations involving rights of indigenous peoples
GRI 413: Local Communities 2016
413-1
413-2
Operations with local community engagement, impact assessments, and
development programmes
Operations with significant actual and potential negative impacts on local
communities
Operating Responsibly
GRI 3: Material Topics 2021
3-3
Management of material topics
GRI 416: Customer Health and Safety 2016
416-1
416-2
Assessment of the health and safety impacts of product and service
categories
Incidents of non-compliance concerning the health and safety impacts of
products and services
GRI 417: Marketing and Labelling 2016
77
76
60, 75
59, 74
44, 77-78
77-78
77
417-1
417-2
Requirements for product and service information and labelling
77-78
Incidents of non-compliance concerning product and service information and
labelling
417-3
Incidents of non-compliance concerning marketing communications
GRI 418: Customer Privacy 2016
77
83
418-1
Substantiated complaints concerning breaches of customer privacy and
losses of customer data
78, 83
89
OM HOLDINGS LIMITED | ANNUAL REPORT 2023 OM Holdings Limited (the “Company”) is committed to implementing and maintaining high standards of corporate governance.
In determining what those high standards should involve, the Company has had regard to the fourth edition of the ASX Corporate
Governance Council’s Corporate Governance Principles and Recommendations 4th Edition (February 2019). The ASX Listing Rules require
the Company to report on the extent to which it has followed those principles and recommendations during its 2023 financial year.
This statement outlines the main corporate governance practices in place during the 2023 financial year, all of which comply with
the ASX Corporate Governance Council recommendations unless stated otherwise.
Further information about the Company’s corporate governance practices is set out on the Company’s website at www.
omholdingsltd.com.
The Company’s Board of Directors (the “Board”) is responsible for corporate governance, that is, the system by which the Company
and its subsidiaries (together, the “OMH Group”) are managed.
1.
BOARD OF DIRECTORS
1.1
Role of the Board and Management
The Board’s role is to govern the OMH Group. In governing the OMH Group, the Board must act in the best interests of the OMH
Group as a whole. It is the role of senior management to manage the OMH Group in accordance with the directions and delegations
of the Board and it is the responsibility of the Board to oversee the activities of management in carrying out these delegated duties.
In carrying out its governance role, one of the primary tasks of the Board is to drive the performance of the OMH Group. The Board
must also ensure that the OMH Group complies with all of its contractual, statutory and any other legal obligations, including the
requirements of any relevant regulatory body. The Board has the final responsibility for the successful operations of the OMH
Group.
To assist the Board in carrying out its functions, it has developed a Code of Ethics and Conduct to guide the Company’s directors
(“Directors”), key executives and all employees in the performance of their respective roles. The Code of Ethics and Conduct, along
with a number of the Company’s other policies and protocols, is available on the Company’s website at http://www.omholdingsltd.
com/aboutus/corporate-governance/
The Board represents shareholders’ interests in relation to optimising the Company’s investment in its ferro alloy smelter and
sinter ore facilities, marketing and trading businesses. This objective extends to managing its various strategic investments in the
carbon steel materials industry and its development and operational initiatives in Malaysia, Singapore, Australia, China and South
Africa. This integrated strategy seeks to achieve medium to long-term financial returns for shareholders while seeking to minimise
risk. The Board believes that this diversified strategy will ultimately result in the interests of all stakeholders being appropriately
addressed when making business decisions.
The Board is responsible for ensuring that the OMH Group is managed in such a way so as to best achieve this desired result. Given
the comparative size of the OMH Group’s smelting, marketing and trading activities commensurate with its market share, the Board
currently undertakes an active, not passive role in its management of the Company’s business and investment goals.
The Board is responsible for evaluating and setting the strategic direction of the OMH Group, establishing goals for management
and monitoring the achievement of these goals. The Executive Chairman (Chief Executive Officer) is responsible to the Board for
the day-to-day management of the OMH Group.
Among other things, the Board has sole responsibility for the following matters:
•
•
appointing (and where appropriate removing) the Chief Executive Officer, any other executive director and the Company
Secretary and determining their respective remuneration and conditions of employment;
determining the strategic direction of the OMH Group and measuring the performance of management against approved
strategies;
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE •
•
•
•
•
•
•
•
•
•
•
•
•
•
monitor the operational and financial position of the Company specifically and the Group generally;
reviewing the adequacy of resources for management to properly carry out approved strategies and business plans;
adopting operating (including production), capital and development expenditure budgets at the commencement of each
financial year and ensuring adherence to those budgets by monitoring both financial and non-financial key performance
indicators;
monitoring the OMH Group’s medium-term capital, exploration and cash flow requirements;
approving and monitoring financial and other reporting to regulatory bodies, shareholders and other key stakeholders;
determining that satisfactory arrangements are in place for auditing the OMH Group’s financial affairs;
setting the OMH Group’s values and standards;
appointing the external auditors of the OMH Group;
reviewing and ratifying systems of risk management and internal compliance and control, codes of conduct and compliance
with all applicable legislative requirements;
ensuring the health, safety and well-being of employees in conjunction with management, and monitoring and reviewing
the effectiveness of occupational health, safety and environmental practices at each of the OMH Group operations;
authorising the issue of shares, options, equity instruments or other securities;
authorising borrowings, other than in the ordinary course of business, and the granting of any security over the undertakings
of the OMH Group or any of its assets;
approving the acquisition, establishment, disposal or cessation of any significant business of the OMH Group; and
ensuring that policies and compliance systems consistent with the OMH Group’s objectives and best practice are in place
and that the OMH Group and its officers act legally, ethically and responsibly at all times.
The Board’s role, and the OMH Group’s corporate governance practices, are being continually reviewed and improved as the OMH
Group’s businesses further expand.
The Board may from time to time delegate some of its responsibilities listed above to its senior management team.
The Executive Chairman (Chief Executive Officer) is responsible for managing the operations of the OMH Group (in accordance
with the requirements of his Executive Service Agreement) under delegated authority from the Board and for implementing the
policies and strategy set by the Board. In carrying out his responsibilities, the Chief Executive Officer must report to the Board in a
timely manner and ensure all reports to the Board present a true and fair view of the OMH Group’s operational results and financial
position.
The role of management is to support the Executive Chairman (Chief Executive Officer) and implement the running of the general
operations and financial business of the OMH Group, in accordance with the delegated authority of the Board.
1.2
Composition of the Board
To add value to the OMH Group, the Board, which comprises of a majority of independent Directors has been formed so that it has
an effective composition, size and commitment to adequately discharge it responsibilities and duties. The names of the Directors
and their qualifications and experience are disclosed in the ‘Directors’ section of the Annual Report. Directors are appointed based
on the specific governance skills required by the OMH Group and on the independence of their decision-making and judgment. The
OMH Group ensures that each Director and senior executive enters into a written agreement with the OMH Group which sets out
the terms of their appointment.
The current Executive Chairman and five Non-Executive Directors have a mix of legal, commercial, exploration, project development,
mining, commodities processing, ore and alloy trading and financial skills and experience. Accordingly the composition, diversity
of skills and experience is appropriate to effectively review and challenge the performance of management and to exercise
independent judgement in discharging their responsibilities and in making decisions.
In addition to the Directors’ experience outlined in the Annual Report, the below table sets out the skills, attributes and experience
of the Directors serving on the Board as at 31 December 2023.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE Domain Area
Board Skills and Experience
As at
31 December 2023
(out of 6 Directors)
Legal and Governance
Experience in a large organisation with a strong focus on and adherence to
high governance standards
Listed entity board and/or sub-committee experience
Experience in corporate legal affairs and/or regulatory/governmental
departments
Relevant legal tertiary degree or professional qualification
Constructively challenge and contribute to Board discussions and
communicate effectively with management and other Directors. Build
consensus, negotiate and obtain stakeholder support for Board decisions.
Executive Management Experience as Director, CEO, CFO or other office holder or similar in medium
to large entities
Strategy
Identifying and critically assessing strategic opportunities and threats to
the OMH Group and developing and implementing successful strategies in
context to an organisations policies and business objectives
Mining, Production,
Manufacturing
Resources, Marketing,
Commodity Expertise
Mining, production,
manufacturing,
marketing
or resources
industry executive
management
Technical skills
Health, Safety
Environment and
Community
Capital projects,
engineering and
construction
Government relations
Senior executive, advisory or board experience
in a large mining, production, manufacturing or
resources organisation
Senior executive responsibility for exploration
or production or processing or long-term board
experience
large mining and resources
organisation with exploration, production or
processing as a key part of its business
in a
Executive or board sub-committee experience
in a mining and resources organisation with
responsibility for health and workplace safety,
and/or environmental and social responsibility
Senior executive experience with capital projects
and/or engineering in a mining or resources
environment; tertiary or professional engineering
Includes contract negotiations,
qualification.
project management and projects with long term
investment horizons
Senior executive experience working in diverse
international,
regulatory
business environments
political,
cultural,
Senior executive expertise in commodities, mining, trading or resources
sector.
Human Resources/
Organisational
Development & Culture
Senior executive management in people management and remuneration
policy development or board remuneration and nomination sub-committee
experience
Finance, Commerce
and Accounting
Financial accounting and reporting, internal financial and risk controls,
corporate finance and, restructuring corporate transactions (eg: joint
ventures, listings etc).
Board audit sub-committee experience
Relevant tertiary degree or professional qualification
Risk Management
Senior executive experience in risk management
Board risk sub-committee experience
92
6
6
6
2
6
6
6
3
1
4
1
3
4
6
5
5
2
4
4
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE The OMH Group recognises the importance of independent Non-Executive Directors and the external perspective and advice that
such Directors can offer. The Board consists of the following independent Non-Executive Directors: Mr Zainul Abidin Rasheed, Mr
Tan Peng Chin, Dato Abdul Hamid Bin Sh Mohamed and Ms Tan Ming-li. Ms Julie Wolseley is also a Non-Executive Director but is not
viewed as independent due to her also providing company secretarial services to the OMH Group. It should be noted however, that
the value of such services is not considered to constitute a material supply arrangement to the Company.
While the Board strongly believes that boards need to exercise independence of judgment, it also recognises (as noted in Principle
2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations 4th Edition) that the need for
independence is to be balanced with the need for skills, commitment and a workable board size. The Board believes it has recruited
members with the skills, experience and character necessary to discharge its duties and that any greater emphasis on independence
would be at the expense of the Board’s effectiveness.
As the OMH Group’s activities increase in size, nature and scope, the size of the Board will be reviewed and the optimum number
of Directors required for the Board to properly perform its responsibilities and functions will continue to be re-assessed. The
Remuneration Committee is responsible for conducting the appropriate checks prior to the appointment of a person as a director of
the Company or prior to putting forward to shareholders a new candidate for election as a director. These processes are governed
by the Group’s Remuneration Committee Charter. Checks undertaken may include checks as to the person’s character, experience,
education, criminal record and bankruptcy history. Material information relevant to a decision on whether to elect or re-elect a
Director is provided to shareholders in all Notice of Meetings which contain director election or re-election resolutions.
Appropriate background checks are also conduct on senior executives before employment, where deemed necessary.
The Company’s current Executive Chairman and Chief Executive Officer, Mr Low, is not considered by the Board to be independent
having regard to the relationships set out in Box 2.3 entitled ‘Factors relevant to assessing the independence of a director’ in the
ASX Corporate Governance Council’s Principles and Recommendations 4th Edition. The Board has regard to the relationships set out
in Box 2.3, among other things, together with the Company’s materiality thresholds, when forming a view as to the independent
status of a Director.
Notwithstanding Recommendation 2.5 of the ASX Corporate Governance Council’s Corporate Governance Principles and
Recommendations 4th Edition (being the requirement for the Chairman of the Company to be an independent director and for the
position of Chairman to not be fulfilled by the same person who fulfils the position of Chief Executive Officer), the Board considers
that Mr Low’s position as Executive Chairman (and Chief Executive Officer) is appropriate given his world-wide experience and
specialised understanding of the global manganese industry. The Board believes that Mr Low has the range of skills, knowledge,
and experience necessary to effectively govern the Company and understand the industries and market segments in which the
Company operates. Mr Low was a founding Director of the Company and has been a major force in its evolution and success. Mr
Low has been instrumental in advancing the OMH Group’s Malaysian operational strategy which represents a unique opportunity
for the OMH Group to be an active participant in one of the world’s lowest cost and strategically located ferro alloy plants with
unparalleled competitive advantages. In particular, Mr Low has proactively sought and secured the Malaysian smelting project’s
unique competitive advantages including, but not limited to, access to competitively priced long term hydroelectric power supply,
identification of coastal industrial land with direct access to dedicated port facilities, geographical proximity to both raw materials
and Asian steel mills and tax incentives as well as comprehensive purpose-built industrial infrastructure. The Board believes that
there are sufficient internal controls in place to ensure adequate accountability, transparency and effective oversight by the Board
such that an appropriate balance of power and authority is exercisable by the Board for objective decision-making in the best
interests of the OMH Group. The Board is therefore of the view that given Mr Low’s technical, commercial and financial experience
and knowledge of the Company, and his continuing contribution to the Board, it is appropriate that he remain in his current position
and that it is currently unnecessary to effect a separation of the role of Executive Chairman from that of Chief Executive Officer
to facilitate the Company’s decision-making and implementation process. Mr Zainul Abidin Rasheed is the independent Deputy
Chairman who has regular and direct contact with the Executive Chairman and seeks to ensure in conjunction with the Executive
Chairman, that the Board is effective, has the right balance of diversity, skills, experience and independence.
The membership of the Board, together with its activities and composition, are subject to periodic review and renewal. The criteria
for determining the identification and appointment of a suitable candidate for the Board includes the quality of the individual, their
background of experience and achievement, their compatibility with other Board members, their intellectual ability to contribute
to Board duties and their physical ability to undertake Board duties and responsibilities.
The Board believes that renewal is an important responsibility of the Board. The Board recognises the importance of renewal to
facilitate new ideas and independent thinking whilst retaining adequate expertise and corporate knowledge. Additionally, as part of
its assessment, the Board will review its composition and size, to ensure that it is appropriate to support the effective functioning
and decision making ability of the Board and its Committees and remains appropriate for the size, nature, and complexity of the
OMH Group’s operations located in various international jurisdictions.
Directors are initially appointed by the Board subject to re-election by shareholders at the subsequent Annual General Meeting.
Under the Company’s Bye-laws, the tenure of Directors (other than the Chief Executive Officer) is subject to re-appointment by
shareholders not later than the third anniversary following his/her last appointment by shareholders. Subject to the requirements
of the law, the Board does not subscribe to the principle of retirement age and there is no maximum period of service as a Director.
A Chief Executive Officer may be appointed for any period and on any terms the Directors think fit and, subject to the terms of any
agreement entered into, the Board may revoke that appointment.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE
1.3
Responsibilities of the Board
In general, the Board is responsible for, and has the authority to determine, all matters relating to the policies, practices,
management and operations of the OMH Group. It is required to do all things that may be necessary to be done in order to carry
out the objectives and strategic imperatives of the OMH Group.
Without limiting the authority and role of the Board, the principal functions and responsibilities of the Board include the following:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Leadership of the OMH Group - overseeing the OMH Group and establishing codes, policies and protocols that reflect the
values of the OMH Group and guide the conduct of the Board, management and employees;
Strategy Formulation - working with senior management to set and review the overall strategy and goals for the OMH Group
and ensuring that there are policies in place to govern the operations of the OMH Group;
Overseeing Planning Activities - overseeing the development of the OMH Group’s strategic plans (including operating,
capital, exploration and development programmes and initiatives) and approving such plans as well as the annual budget;
Shareholder Liaison - ensuring effective communications with shareholders through an appropriate communications policy
and promoting participation at general meetings of the Company;
Monitoring, Compliance and Risk Management - overseeing the OMH Group’s risk management, compliance, control and
any updated forecasts accountability systems and monitoring and directing the operational and financial performance of
the OMH Group;
OMH Group Finances - approving expenditure in excess of that which falls outside the approved authority matrix, approving
expenditure materially outside the annual budget and approving and monitoring acquisitions, divestments and financial
and other reporting;
Human Resources - appointing, and where appropriate, removing the Chief Executive Officer as well as reviewing the
performance of the Chief Executive Officer and monitoring the performance of senior management in their implementation
of the OMH Group’s strategy;
Ensuring the Health, Safety and Well-Being of Employees - in conjunction with the senior management team, developing,
overseeing and reviewing the effectiveness of the OMH Group’s work health and safety systems to ensure the well-being of
all employees; and
Delegation of Authority - delegating appropriate powers to the Chief Executive Officer to ensure effective day-to-day
management of the OMH Group and establishing and determining the powers and functions of the various Committees of
the Board.
Full details of the Board’s role and responsibilities are contained in the Board Charter, a summary of which is contained on the
Company’s website.
1.4
Board Policies
1.4.1 Conflict of Interest
Directors must:
•
•
disclose to the Board any actual or potential conflict of interest that may or might reasonably be thought to exist between
the interests of the Director and the interests of the OMH Group; and
if requested by the Board, within seven days or such further period as may be permitted, take such necessary and reasonable
steps to remove or mitigate any such conflict of interest.
If a Director cannot or is unwilling to remove a conflict of interest then the Director must, in accordance with the requirements of
the law, remove himself/herself from the boardroom when discussion in relation to or concerning matters relating to that conflict
occur and/or abstain from voting on matters about which the conflict relates.
1.4.2 Commitments
Each member of the Board is committed to spending sufficient time to enable them to carry out their duties as a Director of the
Company.
1.4.3 Confidentiality
In accordance with legal requirements and agreed ethical standards, the Directors, key executives and all employees of the OMH
Group have agreed to keep confidential, information received in the course of the exercise of their duties, and will not disclose non-
public information except where disclosure is authorised or legally mandated.
Independent Professional Advice
1.4.4
The Board collectively and, each Director individually, has the right to seek independent legal, accounting or other professional
advice at the OMH Group’s expense, up to specified limits, to assist it or them (as applicable) in carrying out its or their (as applicable)
responsibilities.
1.4.5 Board Access to Information
Subject to the Directors’ Conflict of Interest guidelines referred to in Section 1.4.1 above, Directors have direct access to the
Company’s management and to all Company information in the possession of management.
1.4.6 Related Party Transactions
Related party transactions include any financial transaction between a Director and the OMH Group. Unless there is an exemption
under the Companies Act 1981 of Bermuda or any other relevant laws or regulations (including the ASX Listing Rules) from the
requirement to obtain shareholder approval for the related party transaction, the Board cannot approve the transaction.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE 1.5
Board Meetings
The Executive Chairman (who is also the Chief Executive Officer), in conjunction with the senior management, sets the agenda for
each meeting of the Board. Any Director may request a matter be included on the agenda.
Typically, at Board Meetings the agenda will include:
•
•
•
•
•
•
minutes of the previous Board meeting and matters arising;
the Executive Chairman’s/Chief Executive Officer’s Report;
the Group Financial Controller’s Report;
operating and financial reports from each key business unit;
reports on major projects and current issues; and
specific business proposals.
All Directors and Committees of OMH have access to the Company Secretary for advice and services.
The number of meetings of the Directors held in the period each Director held office during the 2023 financial year and the number
of meetings attended by each Director were:1
Director
Low Ngee Tong
Julie Wolseley
Tan Peng Chin
Zainul Abidin Rasheed
Dato Abdul Hamid Bin Sh Mohamed
Tan Ming-li
Board of Directors’ Meetings
Held
Attended
4
4
4
4
4
4
4
4
4
4
4
4
During the financial year there were four general Directors’ meetings for which formal notice of meeting was given.
2.
BOARD COMMITTEES
Except for the Committees mentioned in Sections 2.1 and 2.2 below, the Board considers that the affairs of the OMH Group are not
sufficiently complex to justify the formation of numerous special Board committees at this time. The Board as a whole is able to
address the governance aspects relating to the full scope of the OMH Group’s activities and to ensure that it adheres to appropriate
ethical standards.
The Board has however established a framework for the management of the OMH Group, including a system of internal controls, a
business risk management process and the establishment of appropriate ethical standards.
The Board also holds meetings at such times as may be necessary to address any general or specific matters as required.
If the OMH Group’s activities increase in size, scope and nature, the establishment of separate or special Board committees will be
considered and implemented, if appropriate.
2.1
Audit Committee
To ensure the integrity of the financial statements of the OMH Group and the independence of the external auditor, an Audit
Committee has been formally established by the Board. The Audit Committee comprised of two independent Non-Executive
Directors, being Dato Abdul Hamid Bin Sh Mohamed (chairman of the Audit Committee), Ms Tan Ming-li and Non-Executive
Director Ms Julie Wolseley. All Audit Committee members have sufficient financial expertise and experience to discharge the Audit
Committee’s mandate.
During the financial year ended 31 December 2023, the Audit Committee held two meetings and all committee members were in
attendance.
The Audit Committee is responsible for reviewing the annual and half-yearly financial statements of the Company and any reports
which accompany those financial statements.
The Board, in conjunction with the Audit Committee, considers the appointment of the external auditor and reviews the appointment
of the external auditor, their independence, the audit fee and any questions of resignation or dismissal. The Audit Committee also
reviews the scope of work of the internal audit function and reviews the internal audit reports tabled by the internal auditors. The
Board is responsible for establishing, and ensuring adherence to, policies on risk oversight and management.
The role of the Audit Committee is to assist the Board to meet its oversight responsibilities in relation to the Company’s financial
reporting, compliance with legal and regulatory requirements, internal control structure and the external audit function.
1
In accordance with Recommendation 1.4, the company secretary of the Company is directly accountable to the Board, through the Executive Chairman, on all
matters to do with the proper functioning of the Board.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE
Key activities undertaken by the Audit Committee include:
•
•
•
•
•
approval of the scope, plan and fees for the external audit;
reviewing the independence and performance of the external auditor;
reviewing significant accounting policies and practices;
appointment of the internal auditor and approving the scope, plan and fees for the internal auditor; and
reviewing OMH Group’s half year and annual financial statements.
Members of the Audit Committee and their qualifications are outlined in the ‘Directors’ section of the Annual Report.
The Audit Committee Charter is available on the Company’s website.
2.2
Remuneration Committee
The Remuneration Committee reviews and makes recommendations to the Board on remuneration policies applicable to executive
officers and Directors of the OMH Group. The Remuneration committee comprised of two Independent Non-Executive Directors,
being Mr Tan Peng Chin (chairman of the Remuneration Committee), Mr Zainul Abidin Rasheed and Non-Executive Director Ms Julie
Wolseley.
A copy of the Remuneration Committee Charter is on the Company’s website.
The role of the Remuneration Committee is to assist the Board in reviewing human resources and compensation policies and
practices which:
•
•
enable the Company to attract, retain and motivate employees who achieve operational excellence and create value for
shareholders; and
reward employees fairly and responsibly, having regard to the results of the OMH Group, individual performance and
general remuneration conditions.
The Remuneration Committee works with the Board on areas such as setting policies for senior officers’ remuneration, setting
the terms and conditions of employment for the Executive Chairman and the Chief Executive Officer, reviewing superannuation
arrangements, reviewing the remuneration of Non-Executive Directors and undertaking an annual review of the Chief Executive
Officer’s performance.
The OMH Group is committed to remunerating its senior executives in a manner that is market competitive and consistent with best
practice as well as supporting the interests of shareholders and will continually review and assess the remuneration structure in
place to achieve this in accordance with the Remuneration Charter.
Non-Executive Directors are paid their fees out of the maximum aggregate amount approved by shareholders for the remuneration
of Non-Executive Directors. The annual aggregate maximum amount of remuneration paid to Non-Executive Directors was last
approved by shareholders on 30 May 2019 and is currently A$1,300,000.
During the year ended 31 December 2023, no Remuneration Committees were held. A Remuneration Committee meeting is planned
to be held in 2024.
Nomination Committee
The Company does not have a separate nomination committee as the Board as a whole undertakes such duties including the
consideration of potential candidates to the Board or other key positions.
The responsibilities of the Board as a whole include devising criteria for Board membership, regularly reviewing the need for
various skills and experience on the Board and identifying specific individuals for nomination as Directors for review by the Board.
The Board also oversees management succession plans, including the Chief Executive Officer and his direct reports, and evaluates
the Board’s performance and makes recommendations for the appointment and removal of Directors.
Directors are appointed based on the specific governance skills required by the OMH Group. Given the size of the OMH Group
and the businesses that it operates, the OMH Group aims at all times to have at least one Director with substantial experience
in the metals trading and mining industries. In addition, the Board should consist of members that have a blend of expertise and
professional experience in:
•
•
•
•
accounting and financial management;
legal skills;
technical skills; and
in relation to the Executive Chairman (Chief Executive Officer) - business experience and commercial acumen.
Prior to appointing a director or recommending a new candidate for election as a director the Board ensures that appropriate
checks are undertaken as to the persons character, experience, education, criminal record and bankruptcy history.
In addition the Board ensures that all material information relevant to a decision on whether or not to elect or re-elect a Director
must be provided to security holders in the Notice of Meeting containing the resolution to elect or re-elect a Director. The Board
will ensure this material information is included in the Company’s 2024 Notice of Annual General Meeting.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE 3.
ETHICAL STANDARDS
The Board acknowledges the need for continued maintenance of the highest standard of corporate governance and ethical conduct
by all Directors and employees of the OMH Group.
The Board has adopted a Values Statement which articulates its guiding principles that define how the Company wishes to conduct
itself in its relationships with the industry and the communities within which it operates. The Values Statement is disclosed on the
Company’s website.
The Board actively promotes ethical and responsible decision making aiming to maintain the highest standard of ethical behaviour
in business and in all its dealings with customers, clients, shareholders, governments, suppliers, employees and the community.
As a minimum the Board and employees will:
•
•
•
•
•
act within applicable laws;
act with fairness and respect;
encourage co-operation and rational debate with a view to achieving shared goals;
act with courtesy; and
foster an environment which encourages diversity in all its forms across the OMH Group.
3.1
Code of Ethics and Conduct for Directors and Key Executives
The Board has adopted a Code of Ethics and Conduct for Directors, key executives and all employees to promote ethical and
responsible decision-making as per Recommendation 3.1 of the ASX Corporate Governance Council’s Principles and Recommendations
4th Edition. This code outlines how the OMH Group expects its Directors, key executives and employees to behave and conduct
business in the workplace on a range of issues. The OMH Group is committed to the highest level of integrity and ethical standards
in all business practices. Directors and employees must conduct themselves in a manner consistent with current community and
corporate standards and in compliance with all applicable legislation. In addition, the Board subscribes to the Statement of Ethical
Standards as published by the Australian Institute of Company Directors.
A summary of the Company’s Code of Ethics and Conduct is available on the Company’s website.
All Directors, key executives and employees are expected to act with the utmost integrity and objectivity, always striving to enhance
the reputation and performance of the Company.
3.2
Code of Ethics and Conduct
As noted above, the OMH Group has implemented a Code of Ethics and Conduct, which provides guidelines aimed at maintaining
the highest ethical standards, corporate behaviour and accountability at all times within the OMH Group.
All Directors, senior executives and employees are expected to:
•
•
•
•
•
•
•
•
•
respect the law and act in accordance with it;
respect confidentiality and not misuse OMH Group information, assets or facilities;
value and maintain professionalism;
avoid any real or perceived conflict of interests;
act in the best interests of shareholders;
by their actions contribute to the OMH Group’s reputation as a good ‘corporate citizen’ that seeks the respect of the
community and environment in which it operates;
perform their duties in a way that minimises environmental impacts and maximises workplace safety;
exercise fairness, courtesy, respect, consideration and sensitivity in all dealings within their workplace and with customers,
suppliers, community members, indigenous people and the public generally; and
act with honesty, integrity, decency and responsibility at all times.
An employee that breaches the Code of Ethics and Conduct may face disciplinary action. If an employee suspects that a breach
of the Code of Ethics and Conduct has occurred or will occur, he or she must advise that breach to management. No employee
will be disadvantaged or prejudiced if he or she reports in good faith a suspected breach. All reports will be acted upon and kept
confidential.
As part of its commitment to recognising the legitimate interests of stakeholders, the OMH Group has established the Code of
Ethics and Conduct to guide compliance with legal and other obligations to legitimate stakeholders. These stakeholders include
employees, customers, government authorities, creditors and the community as whole. This Code includes the following:
Responsibilities to Shareholders and the Financial Community Generally
The OMH Group complies with the spirit as well as the letter of all laws and regulations that govern shareholders’ rights. The OMH
Group has processes in place to ensure the truthful and factual presentation of the OMH Group’s financial position and prepares
and maintains its accounts fairly and accurately in accordance with the generally accepted accounting and international financial
reporting standards.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE Employment Practices
The OMH Group endeavours to provide a safe workplace in which there is equal opportunity for all employees at all levels of
the OMH Group. The OMH Group does not tolerate the offering or acceptance of bribes or the misuse of OMH Group assets or
resources.
Responsibilities to the Community
As part of the community, the OMH Group:
•
•
is committed to conducting its business in accordance with applicable environmental laws and regulations and encourages
all employees to have regard for the environment when carrying out their jobs; and
encourages all employees to engage in activities beneficial to their local community.
Responsibilities to the Individual
The OMH Group is committed to keeping private information confidential which has been provided by employees and investors and
protect such information from uses other than those for which it was provided.
Conflict of Interests
Employees and Directors must avoid conflicts as well as the perception of conflicts between personal interests and the interests
of the OMH Group.
How the OMH Group Monitors and Ensures Compliance with its Code
The Board, management and all employees of the OMH Group are committed to implementing this Code of Ethics and Conduct and
each individual is accountable for such compliance.
Disciplinary measures may be taken for violating the Code of Ethics and Conduct.
The Board is required to be informed of any material breaches to the Code of Ethics and Conduct.
3.3 Whistleblower Policy
In line with the Code of Ethics and Conduct, the Company has a Whistleblower Policy which has been endorsed by the Board
and ensures that persons who make a report in good faith can do so without fear of intimidation, disadvantage or reprisal. The
Whistleblower Policy assists to create a culture within the OMH Group that encourages employees to speak up and raise concerns
regarding breaches of internal rules or policy, or conduct that is illegal, unacceptable or undesirable, or concealment of such
conduct relating to the Company, its subsidiaries, Directors, officers, and employees. It encourages the reporting of behaviour that
may result in financial or non-financial loss, or reputational damage to the Company and plays a key role in detecting reportable
conduct and maintaining good corporate governance.
The Whistleblower Policy complies with Recommendation 3.3 of the ASX Corporate Governance Council.
Subject to the confidentiality obligations, the Whistleblower protection officer must provide the Board a report on a quarterly basis
of any active whistleblower matters.
4.
DIVERSITY
The OMH Group recognises the value contributed to the group’s operations by employing people with varying skills, cultural
backgrounds, ethnicity and experience. The OMH Group’s diverse workforce is the key to continued growth, improved productivity
and performance. The OMH Group actively values and embraces the diversity of its employees and is committed to creating an
inclusive workplace where everyone is treated equally and fairly, and where discrimination, harassment and inequality are not
tolerated.
Whilst the Company has not stated measurable objectives for achieving gender diversity it is committed to workplace diversity
and to ensuring that a diverse mix of skills and talent exists amongst its Directors, officers and employees to enhance Company
performance. The Board has adopted a Diversity Policy which addresses equal opportunities in the hiring, training and career
advancement of Directors, officers and employees. The Diversity Policy outlines the strategies and processes according to which
the Board will set measurable objectives to achieve the aims of its Diversity Policy, with particular focus on gender diversity within
the Company and representation of indigenous individuals. The Board is responsible for monitoring Company performance in
meeting the Diversity Policy requirements, including the achievement of diversity objectives.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE CORPORATE GOVERNANCE
Information relating to the total current representation of women employees in the OMH Group, including those women employees
holding senior executive positions and those women employees on the Board as at 31 December 2023 was follows:
Board of Directors
Senior Executives2
Total OMH Group employees
Number of Women
2
4
375
%
33.3%
25.0%
15.7%
A copy of the Company’s Diversity Policy is available on the Company’s website.
4.1 Measurable Objectives
The Board has not set measurable objectives specifically for the financial year ended 31 December 2023. It does however continually
review the diversity within its workforce and as reported above does have a culturally diverse and gender diverse workforce with
operations in Australia, Malaysia, China and Singapore.
Certain of the Objectives and Outcomes reviewed by the Board are outlined below
Objective
Outcome
Review and amend where appropriate the Diversity Policy
Undertake a gender general assessment of the current diversity
levels within the OMH Group operations and across jurisdictions.
The Board has reviewed OMH’s Committee Charters and other
policies to reflect the objectives of the Diversity Policy.
its human
The OMH Group undertakes reviews through
resources departments at its operations to establish gender mix
and cultural backgrounds.
Establish procedures to track the gender mix of the OMH Group
over time
The OMH Group has compiled a summary of employees including
gender and cultural diversity and will continue to do so.
Structure recruitment and selection processes to recognise the
value of diversity.
The OMH Group is continually reviewing its practices.
Have clear and transparent governance process around reward
and recognition.
The OMH Group has a Remuneration Charter which encourages
rewards to be transparent.
5.
KEY MANAGEMENT PERSONNEL DEALING IN COMPANY SHARES
The Company has a formal trading policy relating to the trading of securities by key management personnel (including Directors)
of the Company which complies with ASX Listing Rule 12.12. A copy of the Company’s Securities Trading Policy is available on the
Company’s website.
6.
DISCLOSURE OF INFORMATION
6.1
Continuous Disclosure to ASX
The Company has a formal Continuous Disclosure and Information Policy as required by Recommendation 5.1 of the ASX Corporate
Governance Council’s Principles and Recommendations 4th Edition. This policy was introduced to ensure that the Company achieves
best practice in complying with its continuous disclosure obligations under the ASX Listing Rules and also to ensure that the
Company and individual officers do not contravene the ASX Listing Rules.
The Company is committed to ensuring that shareholders and the market are provided with equal and timely access to material
information concerning the Company (including of its financial position, performance, ownership and governance), and that all
stakeholders have equal opportunity to receive externally available information issued by the Company.
The Chief Executive Officer is responsible for interpreting and monitoring the Company’s disclosure policy and, where necessary,
informing the Board. The Company Secretary has been nominated as the person responsible for communications with the ASX.
The Continuous Disclosure Policy requires all executives and Directors to inform the Chief Executive Officer (or, in his absence, the
Company Secretary) of any potentially material information as soon as practicable after they become aware of that information.
Information is material if it is likely that the information is market sensitive information, such as would influence investors who
commonly acquire securities on ASX and/or Bursa Malaysia in deciding whether to buy, sell or hold the Company’s securities, or
would otherwise have a material effect on the price or value of the Company’s securities.
2
A Senior Executive of the OMH Group is a person having the authority and responsibility for planning, directing and controlling the activities of the entity.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE
The Company Secretary ensures that all Board members receive copies of all market announcements promptly after they have
been made. Continuous disclosure is discussed at all regular board meetings and on an ongoing basis the Board ensures that all
activities are reviewed to assess the need for disclosure to the market.
All substantive investor or analyst presentations by the Company are released via the ASX Market Announcements Platform and
Bursa Malaysia announcements platform before the commencement of the relevant presentation.
All information disclosed to the ASX is posted on the Company’s website as soon as it is disclosed to the ASX and released to
the market by the ASX. The Company’s website also includes a “Corporate Governance” landing page that discloses all relevant
corporate governance information, including policies and procedures.
6.2
Communication with Shareholders
The Company places considerable importance on effective communication with shareholders and has adopted a Shareholder
Communications Strategy which sets out the OMH Group’s commitment to effectively communicating with shareholders. A copy
of the Shareholder Communications Strategy is available on the Company’s website. Directors recognise that shareholders, as
the ultimate owners of the Company, are entitled to receive timely and relevant high quality information about their investment.
Similarly, prospective new investors are entitled to be able to make informed investment decisions when considering the purchase
of the Company’s shares.
The Company aims to communicate with shareholders and other stakeholders in an open, regular and timely manner so that the
market has sufficient information to make informed investment decisions on the operations and results of the OMH Group. The
strategy provides for the use of internal processes and protocols that ensures a regular and timely release of information about the
OMH Group is provided to shareholders.
OMH Group’s Continuous Disclosure Policy encourages effective communication with its shareholders by requiring:
•
•
•
•
•
the timely and full disclosure of material information about the OMH Group’s activities in accordance with the disclosure
requirements contained in the ASX Listing Rules;
that all information released to ASX also be released to Bursa Malaysia;
that all information released to the market be placed on the Company’s website following release;
that the Company’s market announcements be maintained on the Company’s website for at least three years; and
that all disclosures, including notices of meetings and other shareholder communications, are drafted clearly and concisely.
The Board encourages full participation of Shareholders at annual general meetings to ensure a high level of accountability and
understanding of the OMH Group’s strategy and goals. Copies of the addresses by the Executive Chairman are disclosed to the
market and posted to the Company’s website. The meetings are conducted to allow questions and feedback to the Board. All
shareholder meeting documents are in English and all Directors can understand and speak English.
OMH’s practice at all security holder meetings, including the Annual General Meeting, is that all resolutions are decided by a poll
rather than by a show of hands.
Despite the Company being foreign incorporated in Bermuda, it has in the past and will continue to do so in the future hold its
Annual General Meetings in Australia, Malaysia or Singapore (or at a suitable alternative country where its operations are located)
so as to enable as many shareholders to attend. The 2024 Annual General Meeting will be held physically in Singapore.
Furthermore, the Company’s external auditor attends the Company’s annual general meeting to answer shareholder questions
about the conduct of the audit, the preparation and content of the audit report, the accounting policies adopted by the Company
and the independence of the auditor in relation to the conduct of the audit. The fees relating to the audit services that were
rendered by the Company’s auditors to the Group for the financial year ended 31 December 2023 was US$177,000. There was no
non-audit services performed by the Company’s auditors to the Group during the year.
The Company’s significant briefings with major institutional investors and analysts are lodged with the ASX and Bursa Malaysia and
are made available on the Company’s website.
The Company aims to promote effective communication to and from shareholders. Members are encouraged to register with
the Company’s share registry whether that be in Australia or Malaysia to receive formal notices and material electronically and to
communicate electronically. The Company operates an investor relations department.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE 7.
RISK MANAGEMENT
7.1
Approach to Risk Management and Internal Control
The Board recognises that risk management and internal compliance and control are key elements of good corporate governance.
The OMH Group’s Risk and Internal Control policy describes the manner in which the Company:
•
•
•
identifies, assesses, monitors and manages business and operational risks;
identifies material changes to the Company’s risk profile; and
designs, implements and monitors the effectiveness of the internal compliance and control framework.
The Company considers that effective risk management is about achieving a balanced approach to risk and reward. Risk management
enables the Company to capitalise on potential opportunities while mitigating potential adverse effects. Both mitigation and
optimisation strategies are considered equally important in risk management.
The Board monitors the adequacy of its risk management framework annually to ensure that it continues to be sound and deals
adequately with contemporary and emerging risks and that the OMH Group is operating with due regard to the risk appetite set by
the Board and discloses that reviews have taken place at the end of each reporting period. Members of the Board have an extensive
range of experience in exploration, mining, smelting, trading, human resource and capital management, legal, finance, financial
reporting, corporate strategy and governance across a range of industries to apply to the risk evaluation process.
7.2
Risk Management Roles and Responsibilities
The Company does not have a risk committee. The Board has decided that no efficiencies will be achieved by establishing a separate
risk committee. The full Board is responsible for reviewing and approving the Company’s risk management strategy, policy and key
risk parameters, including determining the OMH Group’s appetite for country specific risk and major investment decisions.
The Board is also responsible for satisfying itself that management has developed and implemented a sound system of risk
management and internal control. Rather than separately constituting an additional committee of the Board, the Board has
delegated oversight of the risk and internal control policy, including review of the effectiveness of the OMH Group’s internal control
framework and risk management process, to the key executive management team in conjunction with the Board. The Board
considers this structure to be the most effective means of (i) managing the various risks that are relevant to the OMH Group and (ii)
monitoring the OMH Group’s compliance with the Risk and Internal Control policy.
Management is responsible for designing, implementing, reviewing and providing assurance as to the effectiveness of the risk and
internal control policy. This responsibility includes developing business risk identification, implementing appropriate risk mitigation
strategies and controls, monitoring effectiveness of controls and reporting on risk management capability.
Each business unit reports annually to the Board on its business plan, risk profile and management of risk.
The Board is responsible for the oversight of the OMH Group’s risk management and control framework. Responsibility for control
and risk management is delegated to the appropriate level of management within the OMH Group with the Chief Executive Officer
(with the support of the OMH Group’s most senior financial executives) having ultimate responsibility to the Board for the risk
management and control framework.
Risk management is reviewed at Board meetings and risk management culture is encouraged amongst employees and contractors.
7.3
Internal Audit
Since 2009, BDO LLP has been engaged to provide internal audit services to the OMH Group. The internal audit function is tendered
every two years.
The internal audit function is independent of both business management and of the activities it reviews. Internal audit provides
assurance that the design and operation of the OMH Group’s risk management and internal control system are effective. A risk-
based audit approach is used to ensure that the higher risk activities in each business unit are targeted by the internal audit
program. All audits are conducted in a manner that conforms to international auditing standards. The assigned internal audit
team has all the necessary access to OMH Group management and information. The Audit Committee oversees and monitors the
internal auditor’s activities. It approves the annual audit program and receives reports from the internal auditor concerning the
effectiveness of internal control and risk management. The Audit Committee members have access to the internal auditors without
the presence of other management. The internal auditor has unfettered access to the Audit Committee and its Chairman.
Internal audit and external audit are separate and independent of each other.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE 7.4
Integrity of Financial Reporting
Each year, the OMH Group’s Executive Chairman/Chief Executive Officer and Group Financial Controller report in writing to the
Board that:
•
•
•
the financial statements of the OMH Group for each half and full year present a true and fair view, in all material aspects, of
the OMH Group’s financial condition and results and are in accordance with accounting standards;
the above statement is founded on a sound system of risk management and internal compliance and control which
implements the policies adopted by the Board; and
the OMH Group’s risk management and internal compliance and control framework is operating efficiently and effectively
in all material respects.
The Board confirms that such a report was provided by the Executive Chairman and Group Financial Controller for the 2023 financial
year.
The Company provides interim (currently quarterly) updates of the OMH Group’s progress across all areas of its operations. The
Executive Chairman and the OMH senior management team are responsible for all such updates, which are reviewed by the Board.
Individual components are also reviewed by senior management with responsibility for the specific component subject matter.
7.5
Role of External Auditor
The OMH Group’s practice is to invite the external auditor to attend each annual general meeting and be available to answer
shareholder questions about the conduct of the audit and the preparation and content of the auditor’s report.
The Board (i) ensures that the appointment of the external auditor is limited in scope so as to maintain the independence of the
external auditor; and (ii) assesses, on a case by case basis, whether the provision of any non-audit services by the external auditor
that may be proposed, is appropriate.
The services considered unacceptable for provision by the external auditor include:
•
•
•
•
•
•
•
•
internal audit;
acquisition accounting due diligence where the external auditor is also the auditor of the other party;
transactional support for acquisitions or divestments where the external auditor is also the auditor of the other party;
book-keeping and financial reporting activities to the extent such activities require decision-making ability and/or posting
entries to the ledger;
the design, implementation, operation or supervision of information systems and provision of systems integration services;
independent expert reports;
financial risk management; and
taxation planning and taxation transaction advice.
It is a requirement that there is a rotation of the external audit partner at least every five years and there is a prohibition in relation
to the re-involvement of a previous audit partner in the audit service for two years following rotation.
7.6
Periodic Corporate Reports
From time to time, OMH releases periodic corporate reports which are not subject to review or audit by OMH’s external auditors.
An example in OMH’s case is the Quarterly Market Update Reports. Where a periodic report is not subject to review/audit, OMH
ensures it employs processes which minimise the chance of error in the report. The processes adopted depend to some extent on
the nature of the report being issued. Generally, this involves engaging with relevant internal stakeholders throughout the report
generation process from start to finish, culminating in internal sign-off by relevant stakeholders that the portion of the report to
which they have contributed is accurate.
All periodic reports are also subject to approval from the Board before release and this approval process includes confirmation
from management to the Directors that the relevant report has been reviewed and is accurate.
7.7
Economic, Environmental and Social Sustainability Risks
The OMH Group undertakes mining, smelting and marketing and trading operations in varying jurisdictions and, as such, faces risks
inherent to its businesses, including financing and economic, environmental and social sustainability risks, which may materially
impact the OMH Group’s ability to create or preserve value for security holders over the short, medium or long term.
The OMH Group believes that long-term success hinges on sustainable development that benefits the business, stakeholders and
the environment. To this end, each business unit has adopted a policy of responsible, proactive environmental management and
will work to ensure compliance with relevant legislative obligations during its exploration and development activity. The OMH
Group is committed to delivering favourable results for shareholders while at the same time ensuring that its economic success is
balanced alongside its environmental and social responsibilities.
The OMH Group appreciates the importance of community consultation and facilitates the involvement and awareness of relevant
communities and their representatives when undertaking any exploration or development activity. Through a proactive policy of
self-regulation, legislative compliance and community involvement, the OMH Group is working hard to deliver on its short and
long-term business objectives while ensuring that relevant social and environmental considerations are included as part of any
decision-making process.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE The OMH Group will continue its policy of sustainable development in the interests of meeting the expectations of its shareholders
without compromising the health or vitality of both the natural and social environment.
The OMH Group prepares and publishes a Sustainability Statement in tis Annual Report and on its website.
The Company has adopted an Environmental Policy, a Human Rights Policy and a Community Relations Policy, to assist with
monitoring environmental and social sustainability risks. The Company is committed to respecting Human Rights throughout the
countries in which it operates and to ensuring that sound environmental management and safety practices are carried out in
its operational activities. Resources have been focussed on establishing and maintaining a culture of best practice through the
implementation of Occupational Health and Safety Plans and Environmental Management Plans at each of the key OMH Group
operations.
7.8
Anti-Bribery and Corruption
Bribery and corruption have a serious impact on the social, economic and political environment of many countries. The effects of
bribery and corruption impact both individuals and businesses in the world’s poorest countries. The Company is committed to the
fight against bribery and corruption and expects all of its employees and representatives to comply with both the letter and spirit
of the laws that govern OMH Group’s operations in Australia, Malaysia, China and Singapore.
The Company has adopted an Anti-Bribery and Corruption Standard Policy in compliance with Recommendation 3.4 of the ASX
Corporate Governance Council. The Policy provides an overview of requirements arising from Foreign Bribery Laws and the various
laws prohibiting fraudulent and corrupt behaviour generally. This Policy is intended to be a common sense manual to enable OMH
employees and representatives to understand and comply with their obligations under these laws.
The Company is committed to ensuring that its corporate culture, in all of its offices and operations worldwide, discourages
fraudulent and corrupt conduct. Notwithstanding laws to the contrary, the fact that bribery and corruption may be tolerated or
encouraged in some of the countries in which OMH operates does not affect a commitment to best business practice.
Subject to confidentiality obligations, the reporting of any such incidents must occur annually to the Board and half yearly to the
Audit Committee. Otherwise if material or potentially involves a breach of any law, then the matter will be immediately referred to
the Chairman of the Audit Committee.
The Company’s Anti-Bribery and Corruption Policy can be found on the Company’s website.
8.
ENCOURAGE ENHANCED PERFORMANCE
Board and management effectiveness are dealt with on a continuous basis by management and the Board, with differing degrees
of involvement from various Directors and management, depending upon the nature of the matter.
The Board aims to periodically evaluate its performance and the performance of its Committees and individual directors to
determine whether or not it is functioning effectively by reference to the Board Charter and current best practice. Given the
COVID-19 pandemic the Board did not conduct a formal review or self-evaluation process, during the 2023 financial year. However,
an annual review was undertaken in relation to the composition and skills mix of the Directors.
The performance of all Directors is reviewed by the Executive Chairman on an ongoing basis and any Director whose performance is
considered unsatisfactory may be asked to retire. The Executive Chairman’s performance is reviewed by the other Board members.
The Company has established firm guidelines to identify the measurable and qualitative indicators of the Director’s performance
during the course of the year. Those guidelines include:
•
•
attendance at all Board meetings. Missing more than three consecutive meetings without reasonable excuse will result in
that Director’s position being reviewed; and
attendance at the Company’s shareholder meetings. Non-attendance without reasonable excuse will result in that Director’s
position being reviewed.
The performance of each Director retiring at the next annual general meeting is taken into account by the Board in determining
whether or not the Board should support the re-election of each such Director. Board support for a Director’s re-election is not
automatic and is subject to satisfactory Director performance.
Arrangements put in place by the Board to monitor the performance of the OMH Group’s Executive Directors and senior executives
include:
•
•
•
a review by the Board of the OMH Group’s financial performance;
annual performance appraisal meetings incorporating analysis of key performance indicators with each individual; and
regular reporting from the Chief Executive Officer which monitors the performance of the Company’s executives to ensure
that the level of reward is aligned with respective responsibilities and individual contributions made to the success of the
OMH Group.
The Remuneration Committee reviews and makes recommendations to the Board on the criteria for and the evaluation of the
performance of the Executive Chairman and the Chief Executive Officer.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE The Board confirms that a formal review was not conducted in 2023 but is planned for 2024 in accordance with these arrangements,
in relation to the performance of the Company’s Executive Directors and senior management during the 2023 financial year.
All senior Executives and Directors are encouraged to attend professional development courses relevant to their roles.
Executive Remuneration Policy
The OMH Group’s remuneration policy aims to reward executives fairly and responsibly in accordance with the international market
for executives and ensure that the Company:
•
•
•
•
•
•
provides competitive rewards that attract, retain and motivate executives of the highest calibre;
sets demanding levels of performance which are clearly linked to an executive’s remuneration;
structures remuneration at a level that reflects the executive’s duties and accountabilities and is, where required, competitive
within Australia , Malaysia and Singapore and, for certain roles, internationally;
benchmarks remuneration against other appropriate comparable groups;
aligns executive incentive rewards with the creation of value for shareholders; and
complies with applicable legal requirements and appropriate standards of governance.
Executive remuneration is reviewed annually having regard to individual and business performance (compared against agreed
financial and non-financial performance measures set at the start of the year), relevant comparative information and expert advice
from both internal and independent external sources.
Remuneration consists of the following key elements:
•
•
fixed remuneration (which includes base salary, superannuation contributions or equivalents and other allowances such as
motor vehicle and health insurance); and
variable annual reward (related to the Company’s and/or individual performance dictated by benchmark criteria).
The operational targets for the Executive Directors and senior executives consist of a number of key performance indicators
including safety, production, operating expenditure, return on shareholders’ funds, enhancing corporate credibility and creation
of value for shareholders.
At the end of the calendar year the Board assesses the actual performance of the consolidated entity and an individual against the
key performance indicators previously set. Any cash incentives (including bonuses) and/or options granted require Board approval.
Options proposed to be granted to any Directors also require shareholder approval. The entry into hedging arrangements in
respect of any unvested incentive securities is not permitted.
Remuneration levels are competitively set to attract and retain appropriately qualified and experienced Directors. The Board seeks
independent advice on the appropriateness of remuneration packages, given trends in comparative companies both locally and
internationally. Remuneration packages include fixed remuneration with bonuses or equity-based remuneration entirely at the
discretion of the Board based on the performance of the OMH Group.
As OMH is incorporated in Bermuda, it is not required to disclose the nature and amount of remuneration for each Director.
However, in the interests of good corporate governance, the following table provides the remuneration details of all Directors of
the Company (and the nature and amount of their remuneration) for the year ended 31 December 2023.
Director
Low Ngee Tong(i)
Zainul Abidin Rasheed(ii)
Julie Anne Wolseley(iii)
Tan Peng Chin(iv)
Dato’ Abdul Hamid Bin Sh
Mohamed(v)
Tan Ming-li(vi)
Base
Remuneration
US$’000
969
-
-
-
-
-
969
Primary
Directors
Fees
US$’000
-
86
113(viii)
80
80
80
439
Post Employment
Performance
Bonus
Defined
Contributions
US$’000
370(vii)
-
-
-
-
-
370
US$’000
6
-
-
-
-
-
6
Total
US$’000
1,345
86
113
80
80
80
1,784
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
Mr Low Ngee Tong has been the Executive Chairman since October 2008 (and was subsequently appointed as Chief Executive Officer).
Mr Zainul Abidin Rasheed was appointed as a Director on 3 October 2011.
Ms Julie Wolseley was appointed as a Director on 24 February 2005.
Mr Tan Peng Chin was appointed as a Director on 14 September 2007.
Dato Hamid was appointed as a Director on 10 May 2021.
Ms Tan Ming-li was appointed as a Director on 10 May 2021.
Inclusive of US$370,000 for profit sharing for 2023 that has been accrued and is expected to be paid in 2024.
Inclusive of director’s fee of US$33,000 paid to Director who is a non-executive director of OMM.
The Non-Executive Directors of the Company do not earn additional fees for undertaking their respective duties on the Audit Committee and Remuneration Committee.
104
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE 9.
RECOGNISE THE LEGITIMATE INTERESTS OF STAKEHOLDERS
The Company has introduced a formal Privacy Policy. The Company is committed to respecting the privacy of stakeholders’ personal
information. This Privacy Policy sets out the Company’s personal information management practices and covers the application of
privacy laws, personal information collection, the use and disclosure of personal information, accessing and updating stakeholders’
information and the security of stakeholders’ information.
Other than the introduction of a formal Privacy Policy, the Board has not adopted any other additional formal codes of conduct to
guide compliance with legal and other obligations to legitimate stakeholders, as it considers, in the context of the size and nature
of the Company, that it would not improve the present modus operandi.
As at 31 December 2023, the Company complied in all material respects with each of the Corporate Governance Principles and the
corresponding Recommendations as published by the ASX Corporate Governance Council except as noted below:
As the Company’s activities increase in size, scope and/or nature, the Company’s corporate governance principles will continue to
be reviewed by the Board and amended as appropriate.
Recommendation
Reference
Notification of
Departure
Explanation for Departure
1.5
Disclose the
measurable
objectives
for achieving
gender diversity
1.6 and 1.7
2.1
Disclose
whether a
performance
evaluation
of the Board
and Senior
Executives
has been
undertaken
A separate
Nomination
Committee
should be
established
The Diversity Policy outlines the strategies and process according to which the Board
will set measurable objectives to achieve the aims of its Diversity Policy, with particular
focus on gender diversity within the Company and representation from Indigenous
communities. The Board did not set measurable gender diversity objectives for the
past financial year because the Board considered the application of a measurable
gender diversity objective requiring a specified proportion of women on the Board
and in senior executive roles would, given the relative size of the Company and the
Board, unduly limit the Company from applying the Diversity Policy as a whole and
the Company’s policy of appointing based on skills and merit. The Board is committed
to appointing the best person into any position. The Company also builds strong
relationships with its Indigenous communities and has training and employment
programs in place to encourage greater participation in the Company’s workforce. The
Board is responsible for monitoring Company performance in meeting the Diversity
Policy requirements, including the achievement of diversity objectives. The Board may
establish appropriate measurable objectives and to report progress against them in
future Annual Reports.
A formal performance evaluation process of the Board and Senior Executives was not
performed in 2023 but is planned for 2024. The Executive Chairman does however
informally review the composition of the Board and its committees and does where
required meet with individual Board members.
The Board of the Company has not formed a separate nomination committee. The
Board as a whole undertakes the process of reviewing the skill base and experience of
existing Directors to enable identification of the attributes required in new Directors.
The Board has decided that no efficiencies will be achieved by establishing a separate
nomination committee. Where appropriate, independent consultants are engaged
to identify possible new candidates for the Board. The Board ensures that prior to
appointing a director or recommending a new candidate for election as a director that
appropriate checks are undertaken as to the persons character, experience, education,
criminal record and bankruptcy history.
105
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE Recommendation
Reference
Notification of
Departure
Explanation for Departure
The chair
should be an
independent
director and
should not
be the same
person as the
Chief Executive
Officer
A listed entity
should have a
program for
inducting new
directors
The Company’s current Executive Chairman and Chief Executive Officer, Mr Low, is
not considered by the Board to be independent in the light of the factors outlined in
Box 2.5 of the ASX Corporate Governance Council’s Principles and Recommendations 4th
Edition which indicate when a director may not be considered to be an independent
director. Refer Section 1.2 of the Corporate Governance Statement. However the Board
considers that Mr Low’s position as both Executive Chairman and CEO is appropriate
given his world-wide experience and specialised understanding of the global
manganese industry. Furthermore, the Board believes that Mr Low has the range of
skills, knowledge, and experience necessary to effectively govern the Company and
to understand the economic sectors in which the Company operates. In addition, it
should be noted that Mr Low is a substantial and longstanding shareholder of the
Company and, as such, is able to clearly identify with the interests of shareholders as
a whole. Mr Low was instrumental in the formation of the Company and has for over
30 years overseen its rapid growth and success. The dual role of Mr Low is balanced
by the Deputy Chairman Mr Zainul Abidin Rasheed who is an independent Non-
Executive Director. In this role Mr Zainul chairs the discussions of the Non-Executive
Directors. The Board believes that there are sufficient internal controls in place to
ensure adequate accountability, transparency and effective oversight by the Board
such that an appropriate balance of power and authority is exercisable by the Board
for objective decision-making in the best interests of the OMH Group. Accordingly Mr
Low is the best person to undertake the Executive Chairman role and the Board does
not believe it is necessary at this stage to appoint an independent chair of the Board.
The Company does not consider it necessary, in the light of the size of the Board and
the relatively low turn-over of Directors, to have a separate formal induction program
for new Directors. All new Directors are given sufficient support from the Board in
order to familiarise themselves with the Company and its governance protocols as well
as being adequately briefed about the OMH Group’s activities, strategies and actual
and budgeted financial positions. All new Directors are appointed through a written
agreement with the Company that sets out all their duties, rights and responsibilities.
New Directors are also provided with the Board Meeting schedule and have the
opportunity to visit the operations each year on a rotational basis as part of the
familiarisation process.
2.5
2.6
106
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE Recommendation
Reference
Notification of
Departure
Explanation for Departure
Rather than separately constituting an additional committee of the Board, the entire
Board has delegated oversight of the risk and internal control policy, including review
of the effectiveness of OMH’s internal control framework and risk management
process, to the key executive management team in conjunction with the Board.
The Board considers this structure to be the most effective means of (i) managing
the various risks that are relevant to the OMH Group and (ii) monitoring the OMH
Group’s compliance with the Risk and Internal Control policy. In addition from a Board
perspective the following processes occur to oversee the entity’s risk management
framework:
•
•
‘Risk’ is a standing agenda item at each monthly Board meeting; and
Prior to the approval of the Company’s statutory financial statements, the
Audit Committee has the opportunity to meet with the Company’s auditors as
appropriate.
The Company is committed to the identification, monitoring and management of
material business risks of its activities via its risk management framework which
includes health and safety, environmental governance, community, operational risk
management, business risk management and legal and regulatory compliance.
The Company does not currently have an equity-based remuneration scheme in
operation and this recommendation is therefore not applicable.
7.1
8.3
The board of
a listed entity
should have a
committee or
committees to
oversee risk.
A listed entity
which has an
equity-based
remuneration
scheme should:
(a) have a policy
on whether
participants
are permitted
to enter into
transactions
(whether
through the use
of derivatives
or otherwise)
which limit the
economic risk of
participating in
the scheme; and
(b) disclose
that policy or a
summary of it.
Approved by the Board 23 April 2024.
107
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023CORPORATE GOVERNANCE DIRECTORS’ STATEMENT
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
The Directors are pleased to present their statement to the members together with the audited consolidated financial statements
of OM Holdings Limited (“the Company”) and its subsidiaries (collectively, the “Group”) for the financial year ended 31 December
2023 and the statement of financial position of the Company as at 31 December 2023.
In the opinion of the Directors,
(a)
(b)
the consolidated financial statements of the Group and the statement of financial position of the Company are drawn up
so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2023 and the
financial performance, changes in equity and cash flows of the Group for the financial year ended on that date; and
at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they fall due.
The Board of Directors has on the date of this statement, authorised these financial statements for issue.
Names of Directors
The Directors of the Company in office at the date of this statement are:
Low Ngee Tong
Zainul Abidin Rasheed
Julie Anne Wolseley
Tan Peng Chin
Dato’ Abdul Hamid Bin Sh Mohamed
Tan Ming-li
(Executive Chairman and Chief Executive Officer)
(Independent Deputy Chairman)
(Non-Executive Director and Joint Company Secretary)
(Independent Non-Executive Director)
(Independent Non-Executive Director)
(Independent Non-Executive Director)
In accordance with Bye-law 88(1) of the Company’s Bye-laws, one-third of the Directors (excluding the Chief Executive Officer) retire
at the forthcoming annual general meeting and, being eligible, offer themselves for re-election.
Arrangements to enable Directors to acquire shares or debentures
Other than as disclosed in the financial statements, during and at the end of the financial year, neither the Company nor any of
its subsidiaries was a party to any arrangement of which the object was to enable the Directors to acquire benefits through the
acquisition of shares in or debentures of the Company or any other corporate body.
108
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
Directors’ interests in shares
None of the Directors who held office at the end of the financial year had any interests in the shares of the Company or its related
corporation, except as follows:
DIRECTORS’ STATEMENT
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
The Company -
Low Ngee Tong
Julie Anne Wolseley
Tan Peng Chin
Holdings registered
in the name of
director or nominee
Holdings in which
director is deemed
to have an interest
As at
1.1.2023
As at
31.12.2023
As at
1.1.2023
As at
31.12.2023
Number of ordinary shares fully paid
68,861,631
68,861,231
5,562,002
5,562,002
(1) 2,035,200
(1) 2,035,200
–
–
–
–
–
–
Note:
(1)
2,035,200 (2022 - 2,035,200) shares are held by bank brokerage firms on behalf of Mr Tan Peng Chin.
Shares Options
No options were granted during the financial year to take up unissued shares of the Company or any corporation in the Group.
No shares of the Company or any corporation in the Group were issued during the financial year by virtue of the exercise of options.
There were no unissued shares of the Company or any corporation in the Group under option at the end of the financial year.
Audit Committee
The Audit Committee at the end of the financial year comprised the following members:
Dato’ Abdul Hamid Bin Sh Mohamed (Chairman)
Julie Anne Wolseley
Tan Ming-li
The Audit Committee performs the functions set out in the Audit Committee Charter available on the Company’s website. The
Company has also considered the fourth edition of the Corporate Governance Principles and Recommendations with relevant
amendments developed by the ASX Corporate Governance Council. In performing those functions, the Audit Committee has
reviewed the following:
i.
ii.
iii.
overall scope of both the internal and external audits and the assistance given by the Company’s officers to the auditors. It
has met with the Company’s internal and external auditors to discuss the results of their respective examinations and their
evaluations of the Company’s systems of internal accounting controls;
the audit plan of the Company’s independent auditor and any recommendations on internal accounting controls arising
from the statutory audit; and
the half-yearly financial information and the statement of financial position of the Company and the consolidated financial
statements of the Group for the financial year ended 31 December 2023 as well as the auditor’s report thereon.
109
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 DIRECTORS’ STATEMENT
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
Audit Committee (Cont’d)
The Audit Committee has full access to management and is given the resources required for it to discharge its functions. It has full
authority and the discretion to invite any Director or executive officer to attend its meetings. The Audit Committee also recommends
the appointment of the external auditor and reviews the level of audit and non-audit fees.
The Audit Committee is satisfied with the independence and objectivity of the external auditor and has recommended to the Board
of Directors that the auditor, Foo Kon Tan LLP, be nominated for re-appointment as auditor at the forthcoming Annual General
Meeting of the Company.
Independent auditor
The independent auditor, Foo Kon Tan LLP, Public Accountants and Chartered Accountants, has expressed its willingness to accept
the re-appointment.
On behalf of the Directors
LOW NGEE TONG
Executive Chairman and Chief Executive Officer
Dated: 15 March 2024
110
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF OM HOLDINGS LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of OM Holdings Limited (the “Company”) and its subsidiaries (collectively,
the “Group”), which comprise the statements of financial position of the Company and the Group as at 31 December 2023, and the
consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement
of cash flows of the Group for the year then ended, and notes to the financial statements, including material accounting policy
information.
In our opinion, the accompanying consolidated financial statements of the Group and the statement of financial position of the
Company are properly drawn up in accordance with the International Financial Reporting Standards (IFRSs) so as to give a true and
fair view of the financial position of the Company and the consolidated financial position of the Group as at 31 December 2023 and
of the consolidated financial performance, consolidated changes in equity and consolidated cash flows of the Group for the year
ended on that date.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards
are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Professional
Conduct and Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our
audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter:
Risk:
Our response and work performed:
Impairment of non-
financial assets
The Group’s non-financial assets comprise
property, plant and equipment,
land use
rights, exploration and evaluation costs,
mine development costs and right-of-use
assets amounted to US$441.5 million as at 31
December 2023. Non-financial assets are tested
for impairment whenever events or changes
in circumstances indicate that the carrying
amount may not be recoverable. An impairment
loss is recognised for the amount by which the
asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is based on
certain key assumptions, such as cash flow
projections covering a five-year period and the
budgeted gross margin, the perpetual growth
rate and discount rate per cash generating
unit (CGU). A CGU is defined as the smallest
identifiable group of assets that generates cash
inflows that are largely independent of the cash
inflows from other assets or groups of assets.
These assumptions which are determined by
management are judgmental.
for
level, the
In determining appropriate CGU
Group has considered whether there are:
active markets
intermediate products;
external users of the processing assets or
smelting operations through the use of shared
infrastructure; stand-alone mines or smelting
plants operated on a portfolio basis. Significant
judgement
is required by management to
determine whether multiple assets should be
grouped to form a CGU.
Our audit procedures included among others,
assessing appropriateness of CGUs
identified
by management, evaluating management’s
assessment for impairment indications, reviewing
the valuation model and assumptions used, and
challenging management’s assumptions in our
evaluation of the model.
from
We evaluated whether
there had been
significant changes in the external and internal
factors considered by the Group in assessing
whether indicators of impairment exist. In the
assessment of impairment, the Group takes into
account the indicative open market prices of the
finished products
independent experts
and publication reports, and uses inputs, such
as market growth rate, weighted average cost
of capital and other factors, typical of similar
smelting
industries. Senior management has
applied its knowledge of the business in its regular
review of these estimates. We also focused on the
adequacy of disclosures about key assumptions
and sensitivities. The disclosures about the
Group’s property, plant and equipment, land use
rights, exploration and evaluation costs, mine
development costs and right-of-use assets are
included in Notes 4, 5, 6, 7 and 9 to the financial
statements respectively.
111
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF OM HOLDINGS LIMITED
Key Audit Matters (Cont’d)
Key audit matter:
Risk:
Our response and work performed:
Recognition of deferred
tax assets
The Group recognised deferred tax assets based
upon unutilised tax losses and other temporary
differences. The Group exercised its judgement to
determine the amount of deferred tax assets that
can be recognised, to the extent that it is probable
that future taxable profit will be available against
which the temporary differences can be utilised.
As at 31 December 2023, the Group recognised
deferred tax assets and deferred tax liabilities of
US$12.2 million and US$27.0 million respectively.
Our audit procedures included among others,
review of the component auditors’ audit working
papers to understand the local tax regulations
and their work performed on the recognition of
deferred tax assets. We have also assessed the
profit forecast to evaluate the reasonableness of
the recognition of deferred tax assets.
We discussed with the Group’s key management
and considered their views on the Group’s
recoverability of deferred tax assets, to the
extent that it is probable that future taxable
income will be available against which the
temporary differences can be utilised. We also
focused on the adequacy of disclosures about key
assumptions and sensitivities. The disclosures
about the Group’s deferred tax assets and
liabilities are included in Note 10 to the financial
statements.
Other Information
Management is responsible for the other information. The other information comprises the information included in the annual
report, but does not include the financial statements and our auditor’s report thereon, which we obtained prior to the date of this
auditor’s report. The annual report is expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other information and we will not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the
matter to those charged with governance and take appropriate actions in accordance with ISAs.
Responsibilities of Management and Those Charged With Governance for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs, and
for such internal controls as management determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The responsibilities of those charged with governance include overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
•
•
•
112
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF OM HOLDINGS LIMITED
Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)
•
•
•
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and
performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, action taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Mr Ho Teik Tiong.
Foo Kon Tan LLP
Public Accountants and
Chartered Accountants
Singapore,
15 March 2024
113
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
The Company
The Group
Assets
Non-Current
Property, plant and equipment
Land use rights
Exploration and evaluation costs
Mine development costs
Investment property
Right-of-use assets
Deferred tax assets
Interests in subsidiaries
Interests in associates
Current
Inventories
Trade and other receivables
Capitalised contract costs
Prepayments
Derivatives
Cash and bank balances
Total assets
Equity
Capital and Reserves
Share capital
Treasury shares
Reserves
Non-controlling interests
Total equity
Liabilities
Non-Current
Borrowings
Lease liabilities
Trade and other payables
Provisions
Deferred tax liabilities
Deferred capital grant
Current
Borrowings
Lease liabilities
Trade and other payables
Provisions
Deferred capital grant
Contract liabilities
Income tax payables
Total liabilities
Total equity and liabilities
Note
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
10
25
21
22
23
24
25
26
31 December 31 December 31 December 31 December
2022
US$’000
2022
US$’000
2023
US$’000
2023
US$’000
−
−
−
−
−
−
−
93,193
−
93,193
−
14,448
−
172
−
13
14,633
107,826
−
−
−
−
−
−
−
102,532
−
102,532
−
6,380
−
1
−
24
6,405
108,937
426,084
5,515
2,771
1,388
419
5,704
12,161
−
84,107
538,149
292,349
38,532
301
1,773
137
69,701
402,793
940,942
445,556
6,533
2,255
1,878
427
4,163
12,578
−
80,875
554,265
235,415
31,783
538
1,620
−
62,383
331,739
886,004
32,976
(2,058)
16,123
47,041
−
47,041
32,035
(2,058)
14,271
44,248
−
44,248
32,976
(2,058)
380,439
411,357
3,269
414,626
32,035
(2,058)
366,133
396,110
3,624
399,734
−
−
−
−
−
−
−
−
−
60,785
−
−
−
−
60,785
60,785
107,826
−
−
−
−
−
−
−
−
−
64,689
−
−
−
−
64,689
64,689
108,937
169,110
2,732
36,730
4,579
26,953
6,564
246,668
96,349
2,621
153,564
−
567
23,326
3,221
279,648
526,316
940,942
204,817
1,753
54,323
4,778
18,393
7,131
291,195
49,923
1,757
126,604
188
567
10,536
5,500
195,075
486,270
886,004
The annexed notes form an integral part of and should be read in conjunction with these financial statements.
114
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
Year ended
Year ended
31 December
31 December
2023
2022
Note
US$’000
US$’000
589,235
856,552
(494,416)
(649,686)
Revenue
Cost of sales
Gross profit
Other income
Distribution costs
Administrative expenses
Other operating expenses
Finance costs
Profit from operations
Share of results of associates
Profit before income tax
Income tax expense
Profit for the year
Other comprehensive income, net of tax:
Items that may be reclassified subsequently to profit or loss
Currency translation differences arising from foreign subsidiaries
(attributable to owners of the Company)
Realisation of foreign exchange reserve upon disposal of subsidiary
Cash flow hedges
Items that will not be reclassified subsequently to profit or loss
Currency translation differences arising from foreign subsidiaries
(attributable to non-controlling interests)
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Profit attributable to:
Owners of the Company
Non-controlling interests
Total comprehensive income attributable to:
Owners of the Company
Non-controlling interests
Profit per share
- Basic
- Diluted
3
27
28
28
29
11
30
31
31
The annexed notes form an integral part of and should be read in conjunction with these financial statements.
94,819
23,508
(28,985)
(14,782)
(19,469)
(27,519)
27,572
5,135
32,707
(14,347)
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Cents
9.21
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115
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
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F
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
Cash Flows from Operating Activities
Profit before income tax
Adjustments for:
Amortisation of land use rights
Amortisation of deferred capital grant
Amortisation of mine development costs
Depreciation of property, plant and equipment
Depreciation of right-of-use assets
Depreciation of investment property
Gain on disposal of property, plant and equipment
Gain on disposal of right-of-use assets
Write-off of property, plant and equipment
Gain on disposal of subsidiary
Reclassification from hedging reserve to profit or loss
Write-down of inventories to net realisable value
Write-off of exploration and evaluation costs
Interest expense
Interest income
Unrealised gain on derivatives
Share of results of associates
Operating profit before working capital changes
(Increase)/decrease in inventories
Decrease in trade receivables
Decrease in capitalised contract costs
Decrease in prepayments, deposits and other receivables
Increase in contract liabilities
Increase in trade payables
Increase/(decrease) in other payables
Decrease in provisions
Cash generated from operations
Income tax paid
Net cash generated from operating activities
Cash Flows from Investing Activities
Payments for exploration and evaluation costs
Purchase of property, plant and equipment
Purchase of right-of-use asset
Proceeds from disposal of property, plant and equipment
Proceeds from disposal of right-of-use assets
Proceeds from disposal of subsidiary, net of cash disposed
Dividends received from an associate
Interest received
Net cash used in investing activities
Note
5, 28
25, 28
7, 28
4, 28
9, 28
8, 28
28
28
28
11.2, 27
30
13, 28
6, 28
28
27
6
4
11.2
12
Year ended
31 December
2023
US$’000
Year ended
31 December
2022
US$’000
32,707
105,629
126
(567)
490
32,204
2,853
8
(396)
(173)
822
(20,157)
(47)
560
−
27,519
(982)
(137)
(5,135)
69,695
(59,030)
4,705
236
1,466
12,791
915
5,722
(200)
36,300
(6,048)
30,252
(490)
(21,261)
(21)
458
174
10,332
5,305
982
143
(564)
392
24,750
2,356
7
(3)
−
10,052
−
(47)
561
130
18,652
(1,205)
−
(8,417)
152,436
23,216
4,328
539
5,642
3,508
26,388
(10,111)
(2,398)
203,548
(6,590)
196,958
(395)
(39,402)
(166)
−
−
−
7,868
1,205
(4,521)
(30,890)
117
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
Cash Flows from Financing Activities
Repayment of bank and other loans (Note A)
Proceeds from bank and other loans (Note A)
Principal repayment of lease liabilities (Note A)
Acquisition of non-controlling interests
(Increase)/decrease in cash collateral
Dividends paid
Interest paid (Note A)
Proceeds from shares issuance
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Exchange difference on translation of cash and cash
equivalents at beginning of the year
Cash and cash equivalents at end of the year
Year ended
31 December
2023
US$’000
Year ended
31 December
2022
US$’000
(47,584)
57,990
(2,636)
−
(45)
(7,803)
(26,919)
8,885
(18,112)
7,619
53,262
(390)
60,491
(65,964)
22,826
(2,484)
(109,127)
2,610
(10,948)
(17,661)
−
(180,748)
(14,680)
69,793
(1,851)
53,262
Note
11.1
18
17
Note A Reconciliation of liabilities arising from financing activities
The following is the disclosure of the reconciliation of items for which cash flows have been, or will be, classified as financing activities,
excluding equity items:
1 January
2023
US$’000
3,510
Cash
inflows
US$’000
Cash
outflows
US$’000
Interest
paid
US$’000
New leases
US$’000
Foreign
exchange
difference
US$’000
Interest
expense
US$’000
31 December
2023
US$’000
−
(2,636)
(165)
4,636
(157)
165
5,353
Non-cash changes
254,740
57,990
(47,584)
−
103
−
−
(26,754)
1 January
2022
US$’000
5,594
Cash
inflows
US$’000
Cash
outflows
US$’000
Interest
paid
US$’000
−
(2,484)
(171)
New
leases
US$’000
567
−
−
35
278(1)
265,459
−
27,076
425
Non-cash changes
Foreign
exchange
difference
US$’000
Write-off
US$’000
Interest
expense
US$’000
31 December
2022
US$’000
(7)
(160)
171
3,510
296,793
22,826
(65,964)
−
171
−
−
(17,490)
−
−
−
−
26
1,059(1)
254,740
−
17,422
103
Lease liabilities
Borrowings – bank
and other
borrowings
Trade and other
payables
- Interest payables
Lease liabilities
Borrowings – bank
and other
borrowings
Trade and other
payables
- Interest payables
(1)
This is related to the amortisation of borrowing costs classified as “Finance costs” in the Consolidated Statement of Comprehensive Income.
The annexed notes form an integral part of and should be read in conjunction with these financial statements.
118
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
1
General information
The financial statements of the Company and of the Group for the financial year ended 31 December 2023 were authorised
for issue in accordance with a resolution of the Directors on the date of the Directors’ Statement.
The Company is incorporated as a limited liability company with primary listing on the Australian Securities Exchange and a
secondary listing on Bursa Malaysia, and is domiciled in Bermuda.
The registered office is located at Clarendon House, 2 Church Street, Hamilton, HM11 Bermuda.
2(a) Basis of preparation
The financial statements are prepared in accordance with International Financial Reporting Standards (“IFRSs”), which
collectively includes all applicable individual IFRSs and Interpretations approved by the International Accounting Standard
Board (“IASB”), and all applicable individual International Accounting Standards (“IASs”) and Interpretations as originated by
the Board of the International Accounting Standards Committee and adopted by the IASB.
The financial statements have been prepared under the historical cost convention, except as disclosed in the accounting
policies below.
The financial statements are presented in United States Dollars (USD) whilst the functional currency of the Company is
Australian Dollars (AUD). All financial information is presented in USD, unless otherwise stated.
As at 31 December 2023, the Company has net assets of US$47,041,000 (2022 - US$44,248,000) and net current liabilities
of US$46,152,000 (2022 - US$58,284,000). Included in the Company’s current liabilities as at 31 December 2023 are non-
trade amounts owing to OM Materials (S) Pte Ltd (“OMS”) and OMH (Mauritius) Corp (“OMH MU”), both wholly-owned
subsidiaries, of US$58,731,000 (2022 – US$54,513,000) and US$ Nil (2022 - US$8,150,000) respectively. OMS has provided a
letter of undertaking that it shall provide continuing financial support to the Company, including not demanding immediate
repayment for debts owing to OMS. Therefore, the Company is of the view that the preparation of financial statements on
a going concern basis is appropriate.
Significant accounting estimates and judgements
The preparation of the financial statements in conformity with IFRS requires the use of judgements, estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and expenses during the financial year. Although
these estimates are based on management’s best knowledge of current events and actions, actual results may differ from
those estimates.
The critical accounting estimates and assumptions used and areas involving a high degree of judgement are described
below.
Significant judgements in applying accounting policies
Income taxes (Note 29)
The Group has exposures to income taxes in numerous jurisdictions. Significant judgement is involved in determining
the group-wide provision for income taxes. There are certain transactions and computations for which the ultimate tax
determination is uncertain during the ordinary course of business. The Group recognises liabilities for expected tax issues
based on estimates of whether additional taxes will be due.
Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences
will impact the income tax and deferred tax provisions in the period in which such a determination is made.
Determination of functional currency
The Group measures foreign currency translation in the respective currencies of the Company and its subsidiaries. In
determining the functional currencies of the entities in the Group, judgement is required to determine the currency that
mainly influences sales prices for goods and services and of the country whose competitive forces and regulations mainly
determines the sales prices of its goods and services. The functional currencies of the entities in the Group are determined
based on management’s assessment of the economic environment in which the entities operate and the entities’ process
of determining sales prices.
Allowance for expected credit losses (ECL) of trade and other receivables (Note 14)
Allowance for ECL of trade and other receivables are based on assumptions about risk of default and expected loss rates. The
Group uses judgement in making these assumptions and selecting the inputs to the ECL calculation, based on the Group’s
past collection history, existing market conditions as well as forward looking estimates at each reporting date. Probability
of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default over a
given time horizon, the calculation of which includes historical data, assumptions and expectations of future conditions.
119
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(a) Basis of preparation (Cont’d)
Significant accounting estimates and judgements (Cont’d)
Significant judgements in applying accounting policies (Cont’d)
Allowance for expected credit losses (ECL) of trade and other receivables (Note 14) (Cont’d)
The Company and the Group adopt a simplified approach and use a provision matrix to calculate ECL for receivables which
are trade in nature. The provision rates are based on days past due for groupings of various customer segments that have
similar loss patterns. The provision matrix is initially based on the Group’s historical observed default rates. The Group will
calibrate the matrix to adjust historical credit loss experience with forward-looking information. The assessment of the
correlation between historical observed default rates, forecast economic conditions and ECL is a significant estimate. The
amount of ECL is sensitive to changes in circumstances and forecast economic conditions.
The Company and the Group apply the 3-stage general approach to determine ECL for receivables which are non-trade in
nature. ECL is measured as an allowance equal to 12-month ECL for stage-1 assets, or lifetime ECL for stage-2 or stage-3
assets. An asset moves from stage-1 to stage-2 when its credit risk increases significantly and subsequently to stage-3 as
it becomes credit-impaired. In assessing whether credit risk has significantly increased, the Company considers qualitative
and quantitative reasonable and supportable forward looking information. Lifetime ECL represents ECL that will result from
all possible default events over the expected life of a financial instrument whereas 12-month ECL represents the portion of
lifetime ECL expected to result from default events possible within 12 months after the reporting date.
Deferred tax assets (Note 10)
The Group reviews the carrying amount of deferred tax assets at the end of each reporting period. Deferred tax assets
are recognised to the extent that it is probable that future taxable income will be available against which the temporary
differences can be utilised. This involves judgement regarding future financial performance of the particular legal entity or
tax group in which the deferred tax asset has been recognised. Management has assessed that it is reasonable to recognise
deferred tax assets based on probable future taxable income.
Determination of cash-generating units (CGU) for non-financial assets
A CGU is defined as the smallest identifiable group of assets that generates cash inflows that are largely independent of
the cash inflows from other assets or groups of assets. In determining appropriate CGU level, the Group has considered
whether there are: active markets for intermediate products; external users of the processing assets; mining or smelting
operations through the use of shared infrastructure; stand-alone mines or smelting plants operated on a portfolio basis.
Significant judgement is required by management to determine whether multiple assets should be grouped to form a CGU.
Management has identified the appropriate CGU level to be the mine or smelting plant together with their direct processing
assets at the same location.
Critical assumptions used and accounting estimates in applying accounting policies
Impairment of non-financial assets
Non-financial assets comprise property, plant and equipment (Note 4), land use rights (Note 5), exploration and evaluation
costs (Note 6), mine development costs (Note 7) and right-of-use assets (Note 9). Determining whether the carrying value
is impaired requires an estimation of the value in use of the cash-generating units. This requires the Group to estimate
the future cash flows expected from the cash-generating units and an appropriate discount rate in order to calculate the
present value of cash flows. The carrying amounts of non-financial assets are disclosed in the consolidated statement of
financial position.
Mine development costs (Note 7)
The fair value of the mine development costs was determined based on the property’s highest and best use, using the income
approach. If the fair value of the mine development costs increases/decreases by 10% from management’s determination,
the Group’s profit for the year will increase/decrease by approximately US$139,000 (2022 - US$188,000).
Impairment of investment in subsidiaries (Note 11)
Determining whether an investment in a subsidiary is impaired requires an estimation of the value-in-use of that investment.
The value-in-use calculation requires the Company to estimate the future cash flows expected from the cash-generating
units and an appropriate discount rate in order to calculate the present value of the future cash flows. Management has
evaluated the recoverability of the investment based on such estimates and assessed that no further impairment was
required. If the present value of estimated future cash flows decreased by 1% from management’s estimates, it is not likely
to materially affect the carrying amount.
Net realisable value of inventories (Note 13)
Net realisable value of inventories is the estimated selling price in the ordinary course of business, less the estimated cost
necessary to make the sale. These estimates are based on the current market conditions and historical experiences of
selling products of similar nature. It could change significantly as a result of competitor actions or in response to changes
in market conditions. Management reassesses the estimations at the end of each reporting date. The carrying amount of
the inventories carried at net realisable value as at 31 December 2023 is US$93,890,000 (2022 – US$46,683,000). If the net
realisable value of the inventories decreases by 10% from management’s estimates, the Group’s profit for the year will
decrease by US$9,389,000 (2022 - US$4,668,300).
120
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(a) Basis of preparation (Cont’d)
Significant accounting estimates and judgements (Cont’d)
Critical assumptions used and accounting estimates in applying accounting policies (Cont’d)
Estimation of the incremental borrowing rate (“IBR”)
For the purpose of calculating the right-of-use asset and lease liability, an entity applies the interest rate implicit in the lease
(“IRIIL”) and, if the IRIIL is not readily determinable, the entity shall use its IBR applicable to the lease asset. The IBR is the rate
of interest that the entity would have to pay to borrow over a similar term, and with a similar security, the funds necessary to
obtain an asset of a similar value to the right-of-use asset in a similar economic environment. For most of the leases whereby
the Group is the lessee, the IRIIL is not readily determinable. Therefore, the Group estimates the IBR relevant to each lease
asset by using observable inputs (such as market interest rate and asset yield) when available, and then making certain
lessee specific adjustments (such as a group entity’s credit rating). The carrying amounts of the Group’s right-of-use assets
and lease liabilities are disclosed in Note 9 and 22 respectively. An increase/decrease of 50 basis points in the estimated IBR
will not significantly decrease/increase the Group’s right-of-use assets and lease liabilities.
2(b) Adoption of new and revised standards effective for the current financial year
On 1 January 2023, the Company and the Group have adopted all the new and revised IFRS, IFRS Interpretations (“IFRS INT”)
and amendments to IFRS, effective for the current financial year that are relevant to them. The adoption of these new and
revised IFRS pronouncements does not result in significant changes to the Group’s and the Company’s accounting policies
and has no material effect on the amounts or the disclosures reported for the current or prior reporting periods.
Amendments to IAS 12 International Tax Reform – Pillar Two Model Rules
The amendments to IAS 12 have been introduced in May 2023, in response to the Organisation for Economic Co-operation
and Development (“OECD”)’s Pillar Two model rules and includes:
•
•
A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional
implementation of the Pillar Two model rules; and
Disclosure requirements for affected entities to help users of the financial statements better understand an entity’s
exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date.
The mandatory temporary exception – the use of which is required to be disclosed – applies immediately. The remaining
disclosure requirements apply for annual reporting periods beginning on or after 1 January 2023, but not for any interim
periods ending on or before 31 December 2023.
The Group operates in jurisdictions where tax laws are being enacted or substantively enacted to implement the Pillar Two
model rules. The Group is still assessing its impact, and has applied the mandatory exception, to not recognise and disclose
information about deferred tax assets and liabilities related to Pillar Two income taxes.
2(c) New and revised IFRS in issue but not yet effective
At the date of authorisation of these financial statements, the Company and the Group have not adopted the new and
revised IFRS, Interpretations and amendments to IFRS that have been issued but not yet effective to them. Management
anticipates that the adoption of these new and revised IFRS pronouncements in future periods will not have a material
impact to the Company’s and the Group’s accounting policies in the period of their initial application:
Reference
Amendments to IAS 1
Description
Effective date
(Annual periods
beginning on
or after)
Classification of Liabilities as Current or Non-current
1 January 2024
Amendments to IAS 1
Non-current Liabilities with Covenants
Amendments to IFRS 16
Lease Liability in a Sale and Leaseback
Amendments to IAS 7 and IFRS 7
Supplier Finance Arrangements
Amendments to IFRS 21
Lack of Exchangeability
1 January 2024
1 January 2024
1 January 2024
1 January 2025
Amendments to IFRS 10 and IAS 28
Sale or Contribution of Assets between an Investor
To be determined
and its Associate or Joint Venture
The new or amended accounting standards and interpretations listed above are not mandatory for 31 December 2023 reporting
periods and have not been early adopted by the Group. These are not expected to have a material impact on the Group, upon
adoption of these new or amended accounting standards, in the current or future reporting periods and on foreseeable future
transactions.
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FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies
Group accounting
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the
Company (its subsidiaries) made up to the reporting date each year. Control is achieved when the Company:
•
•
•
has power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes
to one or more of the three elements of control listed above.
The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an
investee are sufficient to give it power, including:
•
•
•
•
the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote
holders;
potential voting rights held by the Company, other vote holders or other parties;
rights arising from other contractual arrangements; and
any additional facts and circumstances that indicate that the Company has, or does not have, the current ability
to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous
shareholders’ meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company
loses control of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of during the year are included in
the profit or loss from the date the Company gains control until the date when the Company ceases to control the subsidiary.
Where necessary, adjustments are made to the financial statements of subsidiaries to ensure conformity with the Group’s
accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members
of the Group are eliminated on consolidation.
Non-controlling interests in subsidiaries are identified separately from the Group’s equity therein. Those interests of non-
controlling shareholders that are present ownership interests entitling their holders to a proportionate share of net assets
upon liquidation may initially be measured at fair value or at the non-controlling interests’ proportionate share of the
fair value of the acquiree’s identifiable net assets. The choice of measurement is made on an acquisition-by-acquisition
basis. Other non-controlling interests are initially measured at fair value. Subsequent to acquisition, the carrying amount of
non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of
subsequent changes in equity.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the
non-controlling interests. Total comprehensive income of the subsidiaries is attributed to the owners of the Company and
to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
Changes in the Group’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions.
The carrying amount of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their
relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted
and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the
Company.
When the Group loses control of a subsidiary, the gain or loss on disposal recognised in the profit or loss is calculated as
the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained
interest and (ii) the previous carrying amount of the assets (including goodwill), less liabilities of the subsidiary and any
non-controlling interests. All amounts previously recognised in other comprehensive income in relation to that subsidiary
are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified
to profit or loss or transferred to another category of equity as required/permitted by applicable IFRS). The fair value of
any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial
recognition for subsequent accounting under IFRS 9 Financial Instruments when applicable, or the cost on initial recognition
of an investment in an associate or a joint venture.
In the Company’s separate financial statements, investments in subsidiaries are carried at cost less any impairment in net
recoverable value that has been recognised in the profit or loss. On disposal of such investments, the difference between
disposal proceeds and the carrying amounts of the investments are recognised in the profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Joint operations
A joint arrangement is an arrangement in which two or more parties have joint control. Joint control is the contractually
agreed sharing of control such that decisions about the relevant activities of the arrangement (those that significantly affect
the returns) require the unanimous consent of the parties sharing control.
A joint operation is a joint arrangement in which the parties that share joint control have rights to the assets, and obligations
for the liabilities, relating to the arrangement. This includes situations where the parties benefit from the joint activity
through a share of the output, rather than by receiving a share of the results of trading. In relation to its interest in a joint
operation, the Group recognises: its share of assets and liabilities; revenue from the sale of its share of the output and
its share of any revenue generated from the sale of the output by the joint operation; and its share of expenses. All such
amounts are measured in accordance with the terms of the arrangement, which is in proportion to the Group’s interest in
the joint operation. These amounts are recorded in the Group’s consolidated financial statements on the appropriate line
items.
Associates
An associate is an entity over which the Group has the power to participate in the financial and operating policy decisions of
the investee but not control or joint control over those policies.
The Group accounts for its investments in associates using the equity method from the date on which it becomes an
associate.
On acquisition of the investment, any excess of the cost of the investment over the Group’s share of the net fair value
of the investee’s identifiable assets and liabilities is accounted as goodwill and is included in the carrying amount of the
investment. Any excess of the Group’s share of the net fair value of the investee’s identifiable assets and liabilities over the
cost of the investment is included as income in the determination of the entity’s share of the associate’s profit or loss in the
period in which the investment is acquired.
Under the equity method, the investments in associates are carried in the Group’s statement of financial position at cost plus
post-acquisition changes in the Group’s share of net assets of the associates. The profit or loss reflects the share of results of
operations of the associates. Distributions received from associates reduce the carrying amount of the investment. Where
there has been a change recognised in other comprehensive income by the associates, the Group recognises its share of
such changes in other comprehensive income. Unrealised gains and losses resulting from transactions between the Group
and the associate are eliminated to the extent of the interest in the associates.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, the Group does not recognise
further losses, unless it has incurred obligations or made payments on behalf of the associate.
After application of the equity method, the Group determines whether it is necessary to recognise an additional impairment
loss, on the Group’s investment in the associate. The Group determines at the end of each reporting period whether there
is any objective evidence that the investment in the associate is impaired.
If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the
associate and its carrying value and recognises the amount in the profit or loss.
The financial statements of the associates are prepared as the same reporting date as the Company. Where necessary,
adjustments are made to bring the accounting policies in line with those of the Group.
Upon loss of significant influence or joint control over the associate, the Group measures any retained interest at fair value.
Any difference between the fair value of the aggregate of the retained interest and proceeds from disposal and the carrying
amount of the investment at the date the equity method was discontinued is recognised in the profit or loss.
The Group accounts for all amounts previously recognised in other comprehensive income in relation to that associate on
the same basis as would have been required if that associate or joint venture had directly disposed of the related assets or
liabilities.
When an investment in an associate becomes an investment in a joint venture, the Group continues to apply the equity
method and does not re-measure the retained interest.
If the Group’s ownership interest in an associate is reduced, but the Group continues to apply the equity method, the Group
reclassifies to the profit or loss the proportion of the gain or loss that had previously been recognised in other comprehensive
income relating to that reduction in ownership interest if that gain or loss would be required to be reclassified to the profit
or loss on the disposal of the related assets or liabilities.
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FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Intangible assets
Intangible assets are accounted for using the cost model with the exception of goodwill. Capitalised costs are amortised on
a straight-line basis over their estimated useful lives for those considered as finite useful lives. After initial recognition, they
are carried at cost less accumulated amortisation and accumulated impairment losses, if any. In addition, they are subject
to annual impairment testing. Indefinite life intangibles are not amortised but are subject to annual impairment testing.
Intangible assets are written off where, in the opinion of the Directors, no further future economic benefits are expected
to arise.
Goodwill
Goodwill arising in a business combination is recognised as an asset at the date that control is acquired (the acquisition
date). Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any noncontrolling
interest in the acquiree and the fair value of the acquirer’s previously held equity interest (if any) in the entity over net of the
acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.
If, after reassessment, the Group’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum of the
consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer’s
previously held equity interest in the acquiree (if any), the excess is recognised immediately in the profit or loss as a bargain
purchase gain.
Goodwill arising from acquisition of associates and joint ventures represents the excess of the cost of the acquisition over
the Group’s share of the fair value of the identifiable net assets acquired. Goodwill on associates and joint ventures is
included in the carrying amount of the investments.
Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill
is allocated to each of the Group’s cash-generating units expected to benefit from the synergies of the combination. Cash-
generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is
an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying
amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then
to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss
recognised for goodwill is not reversed in a subsequent period.
On disposal of a cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or
loss on disposal.
Exploration and evaluation costs
Exploration and evaluation costs relate to mineral rights acquired and exploration and evaluation expenditures capitalised
in respect of projects that are at the exploration/pre-development stage.
Exploration and evaluation assets are initially recognised at cost. Subsequent to initial recognition, they are stated at cost
less any accumulated impairment losses. These assets are reclassified as mine development costs upon the commencement
of mine development, when technical feasibility and commercial viability of extracting mineral resources becomes
demonstrable.
Exploration and evaluation expenditures in the relevant area of interest comprises costs which are directly attributable
to acquisition, surveying, geological, geochemical and geophysical, exploratory drilling, land maintenance, sampling, and
assessing technical feasibility and commercial viability.
Exploration and evaluation expenditures also include the costs incurred in acquiring mineral rights, the entry premiums paid
to gain access to areas of interest and amounts payable to third parties to acquire interests in existing projects. Capitalised
costs, including general and administrative costs, are only allocated to the extent that these costs can be related directly to
operational activities in the relevant area of interest, where the existence of a technically feasible and commercially viable
mineral deposit has been established.
The carrying amount of the exploration and evaluation assets is reviewed annually and adjusted for impairment in
accordance with IAS 36 Impairment of Assets whenever one of the following events or changes in facts and circumstances
indicate that the carrying amount may not be recoverable (the list is not exhaustive):
(a)
(b)
(c)
(d)
the period for which the Group has the right to explore in the specific area has expired during the period or will
expire in the near future, and is not expected to be recovered;
substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither
budgeted nor planned;
exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially
viable quantities of mineral resources and the Group has decided to discontinue such activities in the specific area;
or
sufficient data exists to indicate that, although a development in the specific area is likely to proceed, the carrying
amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by
sale.
An impairment loss is recognised in the profit or loss whenever the carrying amount of an asset exceeds its recoverable
amount.
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FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Intangible assets (Cont’d)
Mine development costs
Costs arising from the development of the mine site (except for the expenditures incurred for building the mine site and the
purchase of machinery and equipment for the mining operation which are included in property, plant and equipment) are
accumulated in respect of each identifiable area of interest and are capitalised and carried forward as an asset to the extent
that they are expected to be recouped through the successful mining of the areas of interest.
Accumulated costs in respect of an area of interest subsequently abandoned are written off to the profit or loss in the
reporting period in which the Directors’ decision to abandon is made.
Amortisation is not charged on the mine development costs carried forward in respect of areas of interest until production
commences. Where mining of a mineral deposit has commenced, the related exploration and evaluation costs are transferred
to mine development costs. When production commences, carried forward mine development costs are amortised on a
unit of production basis. The unit of production basis results in an amortisation charge proportional to the depletion of the
estimated economically recoverable mineral resources.
Pre-production operating expenses and revenues were accumulated and capitalised into the Bootu Creek mine development
costs until 31 August 2006 as the mine was involved in the commissioning phase which commenced in November 2005.
Subsequent to 31 August 2006, the Directors of the Company determined that the processing plant was in the condition
necessary for it to be capable of operating in the manner intended so as to seek to achieve design capacity rates. These
costs were carried forward to the extent that they are expected to be recouped through the successful mining of the area
of interest.
The amortisation of capitalised mine development costs commenced from 1 September 2006 and continues to be amortised
over the life of the mine according to the rate of depletion of the economically recoverable mineral resources.
Property, plant and equipment
Property, plant and equipment, other than construction-in-progress (“CIP”), are stated at cost less accumulated depreciation
and accumulated impairment losses, if any. Depreciation is computed using the straight-line method to allocate the
depreciable amount of these assets over their estimated useful lives as follows:
Buildings and infrastructure
Plant and machinery
3 to 20 years
3 to 20 years
Computer equipment, office equipment and furniture
1 to 10 years
Motor vehicles
5 to 10 years
Plant and machinery includes Plant and equipment - Process facility. These are stated at cost less accumulated depreciation
and accumulated impairment losses, if any. Depreciation is computed using the unit of production method to allocate the
depreciable amount of these assets over the estimated useful lives as follows:
Plant and equipment - Process facility
Life of mine
CIP represents assets in the course of construction for production or for its own use purpose. CIP is stated at cost less any
impairment loss and is not depreciated. Cost includes direct costs incurred during the periods of construction, installation
and testing plus interest charges arising from borrowings used to finance these assets during the construction period.
CIP is reclassified to the appropriate category of property, plant and equipment and depreciation commences when the
construction work is completed and the asset is ready for use.
The cost of property, plant and equipment includes expenditure that is directly attributable to the acquisition of the items.
Dismantlement, removal or restoration costs are included as part of the cost of property, plant and equipment if the
obligation for dismantlement, removal or restoration is incurred as a consequence of acquiring or using the asset.
Subsequent expenditures relating to property, plant and equipment that have been recognised are added to the carrying
amount of the asset when it is probable that future economic benefits, in excess of the standard of performance of the
asset before the expenditure was made, will flow to the Group and the cost can be reliably measured. Other subsequent
expenditure is recognised as an expense during the financial period in which it is incurred.
For acquisitions and disposals during the financial year, depreciation is provided from the month of acquisition to the month
before disposal respectively. Fully depreciated property, plant and equipment are retained in the books of accounts until
they are no longer in use.
The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and
adjusted as appropriate, at the end of each reporting period. The effects of any revision are recognized in the profit or loss
when the changes arise.
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FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Investment property
Investment property comprises leasehold property that is held for long-term rental yields and for capital appreciation.
Investment property is not occupied by the Group.
The Group applies the cost model. Investment property is initially recognised at cost and subsequently carried at cost less
accumulated depreciation, less any impairment in value similar to that for property, plant and equipment. Such costs include
costs of renovation or improvement of the existing investment property at the time that cost is incurred if the recognition
criteria are met; and excludes the costs of day to day servicing of an investment property. Depreciation is computed using
the straight-line method over the estimated useful life of the investment property of 73 years.
The carrying value of investment property is reviewed for impairment when events or changes in circumstances indicate
the carrying value may not be recoverable. If such indication exists and where the carrying values exceed the estimated
recoverable amounts, the assets are written down to their recoverable amounts.
Inventories
Inventories are stated at the lower of cost and net realisable value. Costs include all direct expenditure and production
overheads based on the normal level of activity. The costs incurred in bringing each product to its present location and
condition are accounted for as follows:
(a)
(b)
Raw materials at purchase cost on a weighted average basis; and
Finished goods and work in progress at cost of materials and labour and a proportion of manufacturing overheads
based on normal operating capacity.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to
make the sale.
Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
Financial assets and financial liabilities are recognised when and only when the Group becomes a party to the contractual
provisions of the instruments.
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when,
and only when, the Group currently has a legally enforceable right to set off the recognised amounts; and intends either to
settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets
Classification
Financial assets are classified, at initial recognition, in the following measurement categories: amortised cost; fair value
through other comprehensive income (FVOCI); and fair value through the profit or loss (FVTPL). The classification depends
on the Group’s business model for managing the financial assets and the contractual terms of their cash flows determining
whether those cash flows represent ‘solely payment of principal and interest’ (SPPI).
For assets measured at fair value, gains and losses will either be recorded in the profit or loss or other comprehensive
income (OCI). The Group reclassifies debt instruments when and only when its business model for managing those assets
changes.
Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits to
purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets
have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.
Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL,
transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets
carried at FVTPL are expensed in the profit or loss. Financial assets with embedded derivatives are considered in their
entirety when determining whether their cash flows are SPPI.
Trade receivables are measured at the amount of consideration to which the Group expects to be entitled in exchange for
transferring promised goods or services to a customer, excluding amounts collected on behalf of a third party, if the trade
receivables do not contain a significant financing component at initial recognition.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Financial assets (Cont’d)
Debt instruments
Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the
cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt
instruments:
•
•
Amortised cost: Financial assets that are held for collection of contractual cash flows where those cash flows represent
SPPI are measured at amortised cost. Financial assets are measured at amortised cost using the effective interest
method, less impairment. Gains and losses are recognised in the profit or loss when the assets are derecognised or
impaired, and through the amortisation process. The Company’s and the Group’s debt instruments at amortised cost
include trade and other receivables, and cash and cash equivalents (including cash collateral).
FVTPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through the profit or
loss. A gain or loss on debt instruments that are subsequently measured at fair value through the profit or loss and are
not part of a hedging relationship is recognized in the profit or loss in the period in which it arises.
Impairment
The Group assesses on a forward-looking basis the expected credit losses (ECL) associated with its debt instruments carried
at amortised cost. ECL are based on the difference between the contractual cash flows due in accordance with the contract
and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest
rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are
integral to the contractual terms.
The impairment methodology applied depends on whether there has been a significant increase in credit risk. ECL are
recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial
recognition, ECL are provided for credit losses that result from default events that are possible within the next 12-months
(a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial
recognition, a loss allowance is recognized for credit losses expected over the remaining life of the exposure, irrespective
of timing of the default (a lifetime ECL).
For receivables which are trade in nature, the Group applies a simplified approach in calculating ECL. Therefore, the Group
does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECL at each reporting date.
The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-
looking factors specific to the debtors and the economic environment.
Significant increase in credit risk
In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Group
compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default
occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers
both quantitative and qualitative information that is reasonable and supportable, including historical experience and
forward-looking information that is available without undue cost or effort. The Group presumes that the credit risk on a
financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past
due, unless the Group has reasonable and supportable information that demonstrates otherwise.
In particular, the following information is taken into account when assessing whether credit risk has increased significantly
since initial recognition:
•
•
•
•
existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a
significant decrease in the debtor’s ability to meet its debt obligations;
an actual or expected significant deterioration in the operating results of the debtor;
significant increases in credit risk on other financial instruments of the same debtor; and
an actual or expected significant adverse change in the regulatory, economic, or technological environment of the
debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations.
Credit-impaired financial asset
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash
flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about
the following events:
•
•
•
•
•
significant financial difficulty of the issuer or the borrower;
a breach of contract, such as a default or past due event;
the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having
granted to the borrower a concession(s) that the lender(s) would not otherwise consider;
it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
the disappearance of an active market for that financial asset because of financial difficulties.
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FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Financial assets (Cont’d)
Definition of default
The Group considers the following as constituting an event of default for internal credit risk management purposes, as
historical experience indicates that receivables that meet either of the following criteria are generally not recoverable:
•
•
when there is a breach of financial covenants by the counterparty; or
information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its
creditors, including the Group, in full (without taking into account any collaterals held by the Group).
The Group considers that default has occurred when a financial asset is more than 90 days past due unless the Group has
reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.
Measurement of expected credit losses
The measurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a
default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical
data adjusted by forward-looking information. As for the exposure at default, for financial assets, this is represented by the
assets’ gross carrying amount at the reporting date; for loan commitments and financial guarantee contracts, the exposure
includes the amount drawn down as at the reporting date, together with any additional amounts expected to be drawn
down in the future by the default date determined based on historical trend, the Group’s understanding of the specific
future financing needs of the debtors, and other relevant forward-looking information.
Write-off policy
The Group writes off a financial asset when there is information indicating that the counterparty is in severe financial
difficulty and there is no realistic prospect of recovery, e.g. when the counterparty has been placed under liquidation or has
entered into bankruptcy proceedings. Financial assets written off may still be subject to enforcement activities under the
Group’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognized in
the profit or loss.
Determination of fair value of financial assets
The fair values of quoted financial assets are based on quoted market prices. If the market for a financial asset is not active,
the Group establishes fair value by using valuation techniques. These include the use of recent arm’s length transactions,
reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models,
making maximum use of market inputs. Where fair value of unquoted instruments cannot be measured reliably, fair value
is determined by the transaction price.
Financial liabilities
The Company’s and the Group’s financial liabilities include borrowings, lease liabilities, trade and other payables, and
accruals.
All interest-related charges are recognised as an expense in “finance cost” in the profit or loss. Financial liabilities are
derecognised if the Company’s and the Group’s obligations specified in the contract expire or are discharged or cancelled.
Borrowings
Borrowings are recognised initially at the fair value of proceeds received less attributable transaction costs, if any.
Borrowings are subsequently stated at amortised cost which is the initial fair value less any principal repayments. Any
difference between the proceeds (net of transaction costs) and the redemption value is taken to the profit or loss over the
period of the borrowings using the effective interest method. The interest expense is chargeable on the amortised cost over
the period of the borrowings using the effective interest method.
Gains and losses are recognised in the profit or loss when the liabilities are derecognised as well as through the amortisation
process.
Borrowings which are due to be settled within 12 months after the end of the reporting period are included in current
borrowings in the statements of financial position even though the original terms were for a period longer than twelve
months and an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the end of the
reporting period. Borrowings to be settled within the Company’s and the Group’s normal operating cycle are classified as
current. Other borrowings due to be settled more than twelve months after the end of reporting period are included in non-
current borrowings in the statements of financial position.
Borrowing costs that are directly attributable to the acquisition, construction or production of a part of the cost of the
related asset are capitalised. Otherwise, borrowing costs are recognized as expenses when incurred. Borrowing costs
consist of interest and other financing charges that the Company and the Group incur in connection with the borrowing of
funds.
Capitalisation of borrowing costs commences when the activities to prepare the qualifying asset for its intended use are
in progress and the expenditures for the qualifying asset and the borrowing costs have been incurred. Capitalisation of
borrowing costs cease when substantially all the activities necessary to prepare the qualifying assets are completed for
their intended use.
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FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Financial liabilities (Cont’d)
Trade and other payables and accruals
Trade and other payables and accruals are initially measured at fair value, and subsequently measured at amortised cost,
using the effective interest method.
Financial guarantees
The Company has issued financial guarantees to banks for bank borrowings of its subsidiaries. These guarantees are
financial guarantee contracts as they require the Company to reimburse the banks if the subsidiaries fail to make principal
or interest payments when due in accordance with the terms of their borrowings.
Financial guarantee contracts are initially recognised at their fair value plus transaction costs in the statement of financial
position. The fair value of financial guarantees is determined based on the present value of the difference in cash flows
between the contractual payments required under the debt instrument and the payments that would be required without
the guarantee, or the estimated amount that would be payable to a third party for assuming the obligations.
Financial guarantee contracts are subsequently measured at the higher of the amount determined in accordance with the
ECL model under IFRS 9 and the amount initially recognised less, where appropriate, the cumulative amount of income
recognised in accordance with the principles of IFRS 15.
Derivative financial instruments and hedging activities
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured
at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a
hedging instrument, and if so, the nature of the item being hedged.
There are 3 types of hedges as follows:
(a)
(b)
(c)
hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge);
hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction
(cash flow hedge);
hedges of a net investment in a foreign operation (net investment hedge).
However, the Group only designates certain derivatives as cash flow hedge.
The Group documents at the inception of the transaction the relationship between hedging instruments and hedged
items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also
documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in
hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Movements on the hedging reserve in other comprehensive income are shown in Note 20. The full fair value of a hedging
derivative is classified as a non-current asset or liability when the remaining hedged item is more than 12 months, and as
a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are
classified as a current asset or liability.
Cash flow hedges
For cash flow hedges, the effective portion of changes in the fair value of derivatives that are designated and qualify as cash
flow hedges are recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised
immediately in the profit or loss. For hedging instruments used to hedge bank borrowings that finance the construction
of a subsidiary’s ferrosilicon production facility, any ineffective portion is capitalised as part of the cost of the ferrosilicon
production facility (“construction-in-progress”).
Amounts accumulated in equity are reclassified to the profit or loss in the periods when the hedged item affects the profit
or loss (for example, when the forecast sale that is hedged takes place). The gain or loss relating to the effective portion of
interest rate swaps which hedge variable rate borrowings is recognised in the profit or loss within ‘finance income/cost’.
However, when the forecast transaction that is hedged results in the recognition of a non-financial asset (for example,
inventory or fixed assets), the gains and losses previously deferred in equity are transferred from equity and included in the
initial measurement of the cost of the asset. The deferred amounts are ultimately recognised in cost of goods sold in the
case of inventory or in depreciation in the case of the fixed assets.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any
cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is
ultimately recognised in the profit or loss. When a forecast transaction is no longer expected to occur, the cumulative gain
or loss that was reported in equity is immediately transferred to the profit or loss.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Derivative financial instruments and hedging activities (Cont’d)
Derivative financial instruments not designated as hedging instrument
Derivative financial instruments that are not designated as hedging instruments, in individual contracts or separated from
hybrid financial instruments, are initially recognised at fair value on the date of the derivative contract is entered into
and subsequently re-measured at fair value. Such derivative financial instruments are accounted for as financial assets or
financial liabilities at fair value through the profit or loss. Gains or losses arising from changes in fair value are recorded
directly in the profit or loss for the year.
The changes in fair value of the derivative financial instruments not designated as hedges are capitalised as part of the cost
of the ferrosilicon production facility (“construction-in-progress”) if these derivatives are used to hedge the bank borrowings
that finance the construction of the ferrosilicon production facility.
Cash and cash equivalents
Cash and cash equivalents include cash at bank and balances on hand, demand deposits with banks and highly liquid
investments with original maturities of 3 months or less which are readily convertible to cash and which are subject to an
insignificant risk of changes in value and form part of the short-term cash management policy.
Share capital and treasury shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are
deducted against the share capital account.
When any entity within the Group purchases the Company’s ordinary shares (“treasury shares”), the consideration paid
including any directly attributable incremental cost is presented as a component within equity attributable to the Company’s
equity holders, until they are cancelled, sold or reissued.
When treasury shares are subsequently cancelled, the cost of treasury shares are deducted against the share capital
account if the shares are purchased out of capital of the Company, or against the retained earnings of the Company if the
shares are purchased out of earnings of the Company.
When treasury shares are subsequently sold or reissued, the cost of treasury shares is reversed from the treasury share
account and the realised gain or loss on sale or reissue, net of any directly attributable incremental transaction costs and
related income tax, is recognized in the capital reserve of the Company.
When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable
costs is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in
the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognised as
an increase in equity and the resulting surplus or deficit on the transaction is presented within share premium.
Share premium
Any excess of the proceeds received over the par value of the shares is recorded in share premium.
Government grants
Government grants are recognised when there is reasonable assurance that the grant will be received and all attaching
conditions will be complied with. Where the grant relates to an asset, the fair value is recognised as deferred capital grant
on the statement of financial position and is amortised to the profit or loss over the expected useful life of the relevant asset
by equal annual instalments.
Government grants related to income
Government grants shall be recognised in the profit or loss on a systematic basis over the periods in which the entity
recognises as expenses the related costs for which the grants are intended to compensate. Grants related to income may be
presented as a credit in the profit or loss, either separately or under a general heading such as “Other income”.
Provisions and contingent liabilities
Provisions are recognized when the Company and the Group have a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. Present obligations arising from onerous contracts
are recognized as provisions.
The Directors review the provisions annually and where in their opinion, the provision is inadequate or excessive, due
adjustment is made.
Where the time value of money is material, provisions are discounted using a current pretax rate that reflects, where
appropriate, the risks specific to the liability. Where discounting is used, the increase in provision due to the passage of time
is recognized as finance costs.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Provisions and contingent liabilities (Cont’d)
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably,
the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible
obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future uncertain
events not wholly within the control of the Group are also disclosed as contingent liabilities unless the probability of outflow
of economic benefits is remote.
Contingent liabilities are not recognised in the statements of financial position of the Group, except for contingent liabilities
assumed in a business combination that are present obligations and which the fair values can be reliably measured.
Contingent liabilities are recognised in the course of the allocation of the purchase price to the assets and liabilities acquired
in a business combination. They are initially measured at fair value at the date of acquisition and subsequently measured at
the higher of the amount that would be recognised in a comparable provision as described above and the amount initially
recognised less any accumulated amortisation, if appropriate.
Leases
(i)
The Group as lessee
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right-
of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except
for short-term leases (defined as leases with a lease term of twelve months or less) and leases of low value assets. For
these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term
of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from
the leased assets are consumed.
(a)
Lease liability
The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily
determined, the Group uses the incremental borrowing rate specific to the lessee. The incremental borrowing
rate is defined as the rate of interest that the lessee would have to pay to borrow over a similar term and with
a similar security the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar
economic environment.
Lease payments included in the measurement of the lease liability comprise:
•
•
•
•
•
fixed lease payments (including in-substance fixed payments), less any lease incentives;
variable lease payments that depend on an index or rate, initially measured using the index or rate at
the commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to
terminate the lease.
Variable lease payments that are not based on an index or a rate are not included as part of the measurement
and initial recognition of the lease liability. The Group shall recognise those lease payments in the profit or
loss in the periods that trigger those lease payments.
For all contracts that contain both lease and non-lease components, the Group has elected to not separate
lease and non-lease components and account these as one single lease component.
The lease liabilities are presented as a separate line item in the statement of financial position.
The lease liability is subsequently measured at amortised cost, by increasing the carrying amount to reflect
interest on the lease liability (using the effective interest method) and by reducing the carrying amount to
reflect the lease payments made.
The Group remeasures the lease liability (with a corresponding adjustment to the related right-of-use asset
or to the profit or loss if the carrying amount of the right-of-use asset has already been reduced to nil)
whenever:
•
•
•
the lease term has changed or there is a significant event or change in circumstances resulting in a
change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured
by discounting the revised lease payments using a revised discount rate;
the lease payments change due to changes in an index or rate or a change in expected payment under
a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised
lease payments using the initial discount rate (unless the lease payments change is due to a change in a
floating interest rate, in which case a revised discount rate is used); or
a lease contract is modified and the lease modification is not accounted for as a separate lease, in which
case the lease liability is remeasured by discounting the revised lease payments using a revised discount
rate at the effective date of the modification.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Leases (Cont’d)
(i)
The Group as lessee (Cont’d)
(b)
Right-of-use asset
The right-of-use asset comprises the initial measurement of the corresponding lease liability, lease payments
made at or before the commencement day, less any lease incentives received and any initial direct costs.
They are subsequently measured at cost less accumulated depreciation and impairment losses.
Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site
on which it is located or restore the underlying asset to the condition required by the terms and conditions
of the lease, a provision is recognised and measured under IAS 37. To the extent that the costs relate to a
right-of-use asset, the costs are included in the related right-of-use asset, unless those costs are incurred to
produce inventories.
Depreciation on right-of-use assets is calculated using the straight-line method to allocate their depreciable
amounts over the shorter period of lease term and useful life of the underlying asset, are as follows:
Leasehold buildings
Plant and machinery
Office equipment
Motor vehicles
:
:
:
:
over lease term of 1 to 4 years
1 to 5 years
5 years
5 to 10 years
If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the
Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life
of the underlying asset. The depreciation starts at the commencement date of the lease.
Costs prepaid for the usage of land in the PRC and Malaysia under leasing agreements form part of the Group’s
right-of-use assets and are presented as land use rights in the statement of financial position. Amortisation
of land use rights is calculated on a straight-line method over the term of use being 50 to 60 years.
The right-of-use assets, except for land use rights, are presented as a separate line item in the statement of
financial position.
The Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any
identified impairment loss.
(ii)
The Group as lessor
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating
lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of
the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance
lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as
whether the lease is for the major part of the economic life of the asset.
At inception or on modification of a contract that contains a lease component, the Group allocates the consideration
in the contract to each lease component on the basis of their relative stand-alone prices. If an arrangement contains
lease and non-lease components, then the Group applies IFRS 15 to allocate the consideration in the contract.
The Group applies the derecognition and impairment requirements in IFRS 9 to the net investment in the lease. The
Group further regularly reviews estimated unguaranteed residual values used in calculating the gross investment
in the lease.
The Group recognises lease payments received from investment property under operating leases as income on a
straight- line basis over the lease term within “other income” in the profit or loss.
Income taxes
Current income tax for current and prior periods is recognised at the amount expected to be paid to or recovered from the
tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting
period.
Deferred income tax is recognised for all temporary differences arising between the tax bases of assets and liabilities and
their carrying amounts in the financial statements except when deferred income tax arises from the initial recognition of
goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting or taxable
profit or loss at the time of the transaction.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Income taxes (Cont’d)
A deferred income tax liability is recognised on temporary differences arising on investments in subsidiaries, associates
and joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the foreseeable future.
A deferred income tax asset is recognised to the extent that it is probable that future taxable profits will be available against
which the deductible temporary differences and tax losses can be utilised.
Deferred income tax is measured:
(i)
(ii)
at the tax rates that are expected to apply when the related deferred income tax asset is realised or the deferred
income tax liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the
end of reporting period; and
based on the tax consequence that will follow from the manner in which the Group expects, at the end of reporting
period, to recover or settle the carrying amounts of its assets and liabilities.
Current and deferred income taxes are recognised as income or expense in the profit or loss, except to the extent that
the tax arises from a business combination or a transaction which is recognised either in other comprehensive income or
directly in equity. Deferred tax arising from a business combination is adjusted against goodwill on acquisition.
Current tax assets and current tax liabilities are presented net if, and only if,
(a)
(b)
the Group has the legally enforceable right to set off the recognised amounts; and
intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
The Group presents deferred tax assets and deferred tax liabilities net if, and only if,
(a)
(b)
the Group has a legally enforceable right to set off deferred tax assets against deferred tax liabilities; and
the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on
either:
(i)
(ii)
the same taxable entity; or
different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to
realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of
deferred tax liabilities or assets are expected to be settled or recovered.
Royalties and Special Mining Taxes
Other tax expense includes the cost of royalty and special mining taxes payable to governments that are calculated on
a percentage of taxable profit whereby profit represents net income adjusted for certain items defined in applicable
legislation.
Employee benefits
Defined contribution plan
Retirement benefits to employees are provided through defined contribution plans, as provided by the laws of the countries
in which it has operations. The Singapore incorporated companies in the Group contribute to the Central Provident Fund
(“CPF”). The Australian subsidiary in the Group is required to contribute to employee superannuation plans and such
contributions are charged as an expense as the contributions are paid or become payable.
The Australian subsidiary contributes to individual employee accumulation superannuation plans at the statutory rate of
the employees’ wages and salaries, in accordance with statutory requirements, so as to provide benefits to employees on
retirement, death or disability. Contributions are made based on a percentage of the employees’ basic salaries.
The employees of the Group’s subsidiaries which operate in the PRC are required to participate in a central pension scheme
operated by the local municipal government. These subsidiaries are required to contribute a certain percentage of its
payroll costs to the central pension scheme.
The Malaysian subsidiaries of the Group participate in the national pension scheme as defined by the laws of Malaysia. These
subsidiaries make contributions to the Employees’ Provident Fund in Malaysia, a defined contribution pension scheme.
These contributions are charged to the profit or loss in the period to which the contributions relate. The Group’s obligations
under these plans are limited to the fixed percentage contributions payable.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Employee benefits (Cont’d)
Employee leave entitlements
Employee entitlements to annual leave are recognised when they accrue to employees. Accrual is made for the unconsumed
leave as a result of services rendered by employees up to the end of the reporting period.
Key management personnel
Key management personnel are those persons having the authority and responsibility for planning, directing and controlling
the activities of the entity. Directors and certain general managers are considered key management personnel.
Related parties
A related party is defined as follows:
(a)
A person or a close member of that person’s family is related to the Company and the Group if that person:
(i)
(ii)
(iii)
has control or joint control over the Company;
has significant influence over the Company; or
is a member of the key management personnel of the Company or the Group.
(b)
An entity is related to the Company and the Group if any of the following conditions applies:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
the entity and the Company are members of the same group (which means that each parent, subsidiary and
fellow subsidiary is related to the others);
one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a
group of which the other entity is a member);
both entities are joint ventures of the same third party;
one entity is a joint venture of a third entity and the other entity is an associate of the third entity;
the entity is a post-employment benefit plan for the benefit of employees of either the Company or an entity
related to the Company. If the Company is itself such a plan, the sponsoring employers are also related to the
Company;
the entity is controlled or jointly controlled by a person identified in (a);
a person identified in (a) (i) has significant influence over the entity or is a member of the key management
personnel of the entity (or of a parent of the entity); or
the entity, or any member of a group which is a part, provides key management personnel services to the
reporting entity or to the parent of the reporting entity.
Impairment of non-financial assets
The carrying amounts of the Company’s and the Group’s non-financial assets subject to impairment are reviewed at the
end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, the
asset’s recoverable amount is estimated.
If it is not possible to estimate the recoverable amount of the individual asset, then the recoverable amount of the cash-
generating unit to which the assets belong will be identified.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash flows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at
cash-generating unit level. Goodwill is allocated to those cash-generating units that are expected to benefit from synergies
of the related business combination and represent the lowest level within the company at which management controls the
related cash flows.
Individual assets or cash-generating units that include goodwill and other intangible assets with an indefinite useful life or
those not yet available for use are tested for impairment at least annually. All other individual assets or cash-generating
units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable.
An impairment loss is recognised for the amount by which the assets or cash-generating units’ carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell
and value-in-use, based on an internal discounted cash flow evaluation. Impairment losses recognised for cash-generating
units, to which goodwill has been allocated, are credited initially to the carrying amount of goodwill. Any remaining
impairment loss is charged pro rata to the other assets in the cash-generating unit. With the exception of goodwill, all assets
are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Impairment of non-financial assets (Cont’d)
Any impairment loss is charged to the profit or loss unless it reverses a previous revaluation in which case it is charged to
equity.
With the exception of goodwill,
•
•
•
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount
or when there is an indication that the impairment loss recognised for the asset no longer exists or decreases.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined if no impairment loss had been recognised.
A reversal of an impairment loss on a revalued asset is credited directly to equity under the heading revaluation surplus.
However, to the extent that an impairment loss on the same revalued asset was previously recognised as an expense
in the profit or loss, a reversal of that impairment loss is recognised as income in the profit or loss.
An impairment loss in respect of goodwill is not reversed, even if it relates to an impairment loss recognised in an interim
period that would have been reduced or avoided had the impairment assessment been made at a subsequent reporting or
the end of a reporting period.
Revenue recognition
Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring
promised goods or services to a customer, excluding amounts collected on behalf of third parties. Revenue is recognised
when the Group satisfies a performance obligation by transferring a promised good or service to the customer, which is
when the customer obtains control of the good or service. A performance obligation may be satisfied at a point in time or
over time. The amount of revenue recognised is the amount allocated to the satisfied performance obligation.
Sale of goods
Revenue from the sale of goods is recognised when the goods are delivered to the customer and all criteria for acceptance
have been satisfied and the customer obtains control of the goods. Control of an asset refers to an entity’s ability to direct
the use of and obtain substantially all of the remaining benefits (that is, the potential cash inflows or savings in outflows)
from the asset. The amount of revenue recognised is based on the estimated transaction price, which comprises the
contractual price, net of the estimated volume discounts and adjusted for expected returns.
The Group supplies ores into the China market and international shipments. For the China market, transfer of goods and
control is passed to the customers upon full payment and notification to take deliveries. For the majority of the Group’s
international shipments, as the Group does not have the right to re-direct shipments and the risk of shipments loss in transit
and at destination ports is covered by the buyers’ insurance, the transfer of goods and control is passed to the customers
upon loading of the goods onto the relevant carrier at the port of shipment. The majority of customers are required to make
full payment before the loading of goods at the port of shipment.
Transportation of goods sold on CFR or CIF Incoterms
Revenue from rendering service for transportation of goods sold is on Cost & Freight (CFR) or Cost, Insurance & Freight
(CIF) Incoterms and is recognised over the period of transportation to the customer. A significant proportion of the Group’s
products are sold under CFR or CIF Incoterms, in which the Group is responsible for providing transportation of the goods
after the date that the Group transfers control of the goods to the customers at the loading port.
The Group’s provision of transportation service for contracts under CFR and CIF Incoterms is a distinct service and, therefore,
a separate performance obligation. The total sales price or transaction price is allocated to the separate performance
obligations comprising of: (a) the product sold; and (b) the transportation service including insurance and freight. Revenue
earned from transportation of goods is recognised over time as the customer simultaneously receives the benefits provided
as the Group performs the transportation service.
Interest income
Interest income is recognised on a time-apportioned basis using the effective interest rate method.
Dividend income
Dividend income is recognised when the right to receive the dividend has been established.
Consignment arrangements
When the Group (the consignor) delivers a product to another party (the consignee) for sale to end customers, the Group
evaluates whether that other party has obtained control of the product at that point in time. A product that has been
delivered to another party may be held in a consignment arrangement if that other party has not obtained control of the
product. Accordingly, the Group does not recognise revenue upon delivery of a product to another party if the delivered
product is held on consignment arrangement, but recognises revenue only when the consignment inventory has been sold
by that other party. A consignment arrangement is in place when the product is controlled by the Group until a specified
event occurs; the Group is able to require the return of the product or transfer the product to another third party; and that
other party does not have an unconditional obligation to pay for the product.
135
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Contract liabilities
Contract liabilities relate to the Group’s obligation to perform services for which the Group has received advances from
customers. Contract liabilities are recognised as revenue as the Group performs the service under the contract.
Capitalised contract costs
Costs to fulfil a contract are capitalised if the costs relate directly to the contract, generate or enhance resources used
in satisfying the contract and are expected to be recovered. Capitalised contract costs are subsequently amortised on a
systematic basis as the Group recognises the related revenue. An impairment loss is recognised in the profit or loss to the
extent that the carrying amount of the capitalised contract costs exceeds the remaining amount of consideration that the
Group expects to receive in exchange for the services to which the contract costs relate, less the costs that relate directly to
providing the services and that have not been recognised as an expense.
Functional currencies
Items included in the financial statements of each entity in the Group are measured using the currency of the primary
economic environment in which the entity operates (“functional currency”). The financial statements of the Company and
the Group are presented in United States Dollars whilst the functional currency of the Company is Australian Dollars.
Conversion of foreign currencies
Transactions and balances
Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency
using the exchange rates at the dates of the transactions. Currency translation differences from the settlement of such
transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing
rates at the end of the reporting period are recognised in the profit or loss.
However, in the consolidated financial statements, currency translation differences arising from borrowings in foreign
currencies and other currency instruments designated and qualifying as net investment hedges and net investment in
foreign operations, are recognised in other comprehensive income and accumulated in the currency translation reserve.
When a foreign operation is disposed of or any borrowings forming part of the net investment of the foreign operation are
repaid, a proportionate share of the accumulated translation differences is reclassified to the profit or loss, as part of the
gain or loss on disposal.
All other foreign exchange gains and losses impacting the profit or loss are presented in the consolidated statement of
comprehensive income within “other operating expenses”.
Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at the date when
the fair values are determined.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates at the date of the transactions.
Group entities
The results and financial position of all the entities within the Group that have a functional currency different from the
presentation currency are translated into the presentation currency as follows:
(i)
(ii)
(iii)
Assets and liabilities are translated at the closing exchange rates at the end of the reporting period;
Income and expenses for each statement presenting the profit or loss and other comprehensive income (i.e. including
comparatives) shall be translated at exchange rates at the dates of the transactions; and
All resulting currency translation differences are recognised in other comprehensive income and accumulated in the
exchange fluctuation reserve.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and liabilities of
the foreign operations and are translated at the closing rates at the reporting date. For acquisitions prior to 1 January 2010,
the goodwill and fair value adjustments are translated at the exchange rates at the dates of acquisition.
136
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2(d) Summary of accounting policies (Cont’d)
Operating segments
The Group identifies operating segments and prepares segment information based on the regular internal financial
information reported to the executive Directors for their decisions about resources allocation to the Group’s business
components and for their review of the performance of those components. The business components in the internal
financial information reported to the executive Directors are determined following a review of the Group’s major products
and services.
The Group has identified the following reportable segments:
Mining
Smelting
Exploration and processing of manganese ore
Production of ferrosilicon, manganese alloys, silicon metal and manganese sinter ore
Marketing and trading
Trading of manganese ore, ferrosilicon, manganese alloys, silicon metal and manganese sinter
ore
Each of these operating segments is managed separately as they require different resources as well as operating approaches.
The reporting segment results exclude finance income and costs and share of results of associate which are not directly
attributable to the business activities of any operating segment, and are not included in arriving at the operating results of
the operating segment.
Segment assets exclude interests in associates which are not directly attributable to the business activities of any operating
segment.
Segment liabilities comprise operating liabilities of each operating segment.
3
Principal activities and revenue
The principal activity of the Company is that of investment holding. The principal activities of the subsidiaries are as stated
in Note 11.
Revenue is turnover derived from activities related to the sales of ore and ferroalloy products and related services which
represent the invoiced value of goods or services sold, net of discounts, goods and services tax and other sales taxes.
The geographical location of customers is based on the locations at which the goods were delivered.
137
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
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138
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
4
Property, plant and equipment
Construction
-in-progress
US$’000
Buildings and
infrastructure
US$’000
Plant and
machinery
US$’000
Computer
equipment,
office
equipment
and
furniture
US$’000
Motor
vehicles
US$’000
Total
US$’000
6,038
37,477
(11,455)
−
−
(1,379)
30,681
8,998
(15,210)
−
−
−
−
(1,490)
22,979
19,909
350
16
−
−
(1,444)
588,342
969
11,066
(15,464)
−
(3,504)
18,831
200
(1,310)
581,409
11,499
16,449
−
1,826
(32)
(12,959)
(15,327)
−
(460)
1,902
(17,136)
(606)
(426)
580,056
5,063
489
373
(56)
(7)
(109)
5,753
488
41
−
(99)
(237)
(34)
(62)
5,850
1,423
117
−
(2)
(100)
(57)
1,381
76
30
137
(10)
(357)
(85)
(23)
1,149
620,775
39,402
−
(15,522)
(107)
(6,493)
638,055
21,261
−
1,963
(13,100)
(33,057)
(725)
(2,461)
611,936
The Group
Cost
At 1 January 2022
Additions
Transfers
Written off
Disposal
Exchange realignment
At 31 December 2022 and
at 1 January 2023
Additions
Transfers
Transfer from right-of-use
assets (Note 9)
Written off
Disposal of subsidiary
(Note 11.2)
Disposal
Exchange realignment
At 31 December 2023
Accumulated depreciation and impairment loss
At 1 January 2022
Depreciation for
the year (Note 28)
Transfers
Written off
Disposal
Exchange realignment
At 31 December 2022 and
1 January 2023
Depreciation for
the year (Note 28)
Transfers
Transfer from right-of-use
assets (Note 9)
Written off
Disposal of subsidiary
(Note 11.2)
Disposal
Exchange realignment
At 31 December 2023
Net book value
−
−
−
−
−
−
−
−
−
−
−
−
−
−
11,826
160,428
3,261
1,285
176,800
955
−
−
−
(854)
23,022
(26)
(5,429)
−
(2,539)
713
26
(39)
(5)
(44)
60
−
(2)
(86)
(53)
24,750
−
(5,470)
(91)
(3,490)
11,927
175,456
3,912
1,204
192,499
448
129
−
(32)
(10,839)
−
(287)
1,346
30,996
(174)
1,600
(12,149)
(15,648)
(578)
(263)
179,240
694
23
−
(87)
(217)
−
(18)
4,307
66
22
137
(10)
(354)
(85)
(21)
959
32,204
−
1,737
(12,278)
(27,058)
(663)
(589)
185,852
At 31 December 2023
22,979
556
400,816
1,543
190
426,084
At 31 December 2022
30,681
6,904
405,953
1,841
177
445,556
139
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
4
Property, plant and equipment (Cont’d)
As of 31 December 2023, property, plant and equipment with a total net carrying amount of US$398,117,000 (2022 –
US$409,746,000) had been pledged for banking facilities granted to the Group (Note 21.1). Disposal of subsidiary relates to
deconsolidation of OM Materials (Qinzhou) Co Ltd (“OMQ”) upon loss of control (Note 11.2).
The Group evaluates any indication of impairment in the property, plant and equipment at the end of each reporting period.
Cash flow projections used in these calculations are based on financial budgets approved by management. Cash flows
beyond the budget period are extrapolated using the estimated growth rates stated below. The growth rate does not
exceed the long-term average growth rate of the industry in which the CGU operates.
These assumptions are used for the analysis of each CGU within the business segment. Management determines budgeted
gross margins based on past performance and its expectations of market developments. The weighted average growth
rates used are consistent with forecasts included in industry reports. The discount rates used are pre-tax and reflect specific
risks relating to the relevant segments. A further decrease in the budgeted gross margin by 1% (2022 – 1%) would not result
in indication of impairment of the carrying amount of property, plant and equipment.
Key assumptions used for value-in-use calculations:
2023
2022
Malaysia
Australia
Smelting
operations
People’s
Republic
of China
Malaysia
Australia
Smelting operations
Gross margin1
Growth rate2
10%
31%
2%
12%
31%
0 – 4% before
2028,
0% after 2028
0% before
2028,
0% after 2028
0 – 1% before
2027,
0% after 2027
1 – 2% before
2027,
0% after 2027
0% before 2027,
0% after 2027
Discount rate3
9.2%
12.8%
4.3%
6.6%
12.8%
1
2
3
Budgeted gross margin. The gross margin differs due to the different operating efficiencies of the various subsidiaries located in different
geographical locations.
Weighted average growth rate used to extrapolate cash flows beyond the budget period.
Pre-tax discount rates applied to the pre-tax cash flow projections. The discount rates vary due to the geographical locations of the
businesses.
5
Land use rights
The Group
At beginning of the year
Amortisation for the year (Note 28)
Disposal of subsidiary (Note 11.2)
Exchange realignment
At end of the year
2023
US$’000
2022
US$’000
6,533
(126)
(869)
(23)
5,515
6,755
(143)
−
(79)
6,533
The land use rights, that form part of the Group’s right-of-use assets, are for leasehold land located in Malaysia (2022 – PRC
and Malaysia).
The land use rights for leasehold land located in Malaysia had a net carrying value of US$5,515,000 (2022 – US$5,630,000)
and were pledged as security for borrowings referred to in Note 21.1(b).
Disposal of subsidiary relates to deconsolidation of OMQ upon loss of control (Note 11.2).
Information about the Group’s leasing activities are disclosed in Note 34.
140
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
6
Exploration and evaluation costs
The Group
At beginning of the year
Costs incurred during the year
Written off during the year (Note 28)
Exchange realignment
At end of the year
2023
US$’000
2022
US$’000
2,255
490
−
26
2,771
2,142
395
(130)
(152)
2,255
The Group has a 51% (2022 - 51%) interest in a joint venture arrangement in Australia which is involved in the exploration
of manganese. This interest in the joint venture arrangement is accounted for as a joint operation. In 2023 and 2022,
the expenditure capitalised during the year related to the Group’s share of exploration expenditure invested in the joint
operation. The joint operation has no contingent liabilities or commitments as at 31 December 2023 and 2022.
7
Mine development costs
The Group
At beginning of the year
Adjustments to rehabilitation provisions (Note 24)
Amortisation for the year (Note 28)
Exchange realignment
At end of the year
8
Investment property
The Group
Cost
Balance at beginning of year and at end of year
Accumulated depreciation
Balance at beginning of year
Depreciation for the year (Note 28)
Balance at end of year
Net book value
Rental income
Direct operating expenses arising from investment property that generates rental
income
Depreciation for the year
Gross profit arising from investment property
2023
US$’000
2022
US$’000
1,878
3
(490)
(3)
1,388
1,951
450
(392)
(131)
1,878
2023
US$’000
2022
US$’000
566
139
8
147
419
73
(18)
(8)
47
566
132
7
139
427
94
(17)
(7)
70
141
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
8
Investment property (Cont’d)
The following are details of the investment property of the Group:
Property Name
Parkway Parade
Fair value hierarchy
2023
2022
Location
Description
Total net lettable
area (sq m)
80 Marine Parade Road,
#08-08 Parkway Parade,
Singapore 449269
Office premises
148
Tenure
73-year leasehold
commenced from
31 August 2005
Fair value measurements using
Quoted prices in active
markets for identical assets
(Level 1)
Significant other observable
inputs
(Level 2)
Significant unobservable
inputs
(Level 3)
US$’000
US$’000
−
−
−
−
US$’000
2,425
2,460
Valuation techniques used to derive fair values
As of 31 December 2023, the fair value of investment property amounted to approximately US$2,425,000 (2022 -
US$2,460,000) as determined by management with reference to recent market transactions of comparable properties in
close proximity, adjusted for differences in key attributes such as property size, which is based on the property’s highest
and best use.
9
Right-of-use assets
The Group
Cost
At 1 January 2022
Additions
Write-off
Exchange realignment
At 31 December 2022 and
at 1 January 2023
Additions
Write-off
Disposal
Transfer to property, plant and
equipment (Note 4)
Exchange realignment
At 31 December 2023
Leasehold
buildings
US$’000
Plant and
machinery
US$’000
Office
equipment
US$’000
Motor
vehicles
US$’000
Total
US$’000
7,503
10,380
9
−
(63)
7,449
4,569
(2,697)
−
−
(6)
9,315
697
−
(454)
10,623
39
−
(2,195)
(1,826)
(20)
6,621
26
27
(26)
−
27
−
−
−
−
−
27
365
18,274
−
−
(1)
364
49
−
−
(137)
−
276
733
(26)
(518)
18,463
4,657
(2,697)
(2,195)
(1,963)
(26)
16,239
142
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
9
Right-of-use assets (Cont’d)
The Group
Leasehold
buildings
US$’000
Plant and
machinery
US$’000
Office
equipment
US$’000
Motor
vehicles
US$’000
Total
US$’000
Accumulated depreciation and impairment
At 1 January 2022
Depreciation (Note 28)
Write-off
Exchange realignment
At 31 December 2022 and
at 1 January 2023
Depreciation (Note 28)
Write-off
Disposal
Transfer to property, plant and
equipment (Note 4)
Exchange realignment
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022
2,742
1,649
−
(46)
4,345
2,633
(2,697)
−
−
(4)
4,277
5,038
3,104
9,429
665
−
(407)
9,687
191
−
(2,194)
(1,600)
15
6,099
522
936
Leasehold buildings are located in Malaysia, Singapore and Australia.
Information about the Group’s leasing activities are disclosed in Note 34.
10 Deferred taxation
18
5
(18)
−
5
5
−
−
−
−
10
17
22
227
37
−
(1)
263
24
−
−
(137)
(1)
149
127
101
12,416
2,356
(18)
(454)
14,300
2,853
(2,697)
(2,194)
(1,737)
10
10,535
5,704
4,163
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset deferred income tax assets
against deferred income tax liabilities and when the deferred income taxes relate to the same fiscal authority. The amounts,
determined after appropriate offsetting in similar tax legislations, are shown on the statement of financial position as
follows:
The Group
Deferred tax assets
At gross
Less: Set off of tax in similar legislations
At net
Deferred tax liabilities
At gross
Less: Set off of tax in similar legislations
At net
Deferred tax assets
To be recovered within one year
To be recovered after one year
2023
US$’000
2022
US$’000
13,381
(1,220)
12,161
(47,924)
20,971
(26,953)
−
12,161
12,161
13,791
(1,213)
12,578
(53,336)
34,943
(18,393)
−
12,578
12,578
143
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
10 Deferred taxation (Cont’d)
The Group
Deferred tax liabilities
To be settled within one year
To be settled after one year
2023
US$’000
2022
US$’000
−
(26,953)
(26,953)
−
(18,393)
(18,393)
The movement in deferred tax assets and liabilities (after offsetting of balances within the same tax jurisdiction) are as
follows:
Temporary differences on
qualifying property, plant
and equipment, and mine
development costs
US$’000
Provisions
US$’000
Tax losses
US$’000
Others
US$’000
Total
US$’000
(46,178)
2,605
57,051
(70)
13,408
46,455
(1,228)
(45,455)
(145)
(670)
246
(4)
18
(848)
(29)
248
−
−
1
1,232
10,926
172
12,578
−
−
7
92
(563)
45
10,500
−
−
1
173
92
(563)
54
12,161
249
1,239
Temporary differences on
qualifying property, plant
and equipment
US$’000
Provisions
US$’000
Tax losses
US$’000
Others
US$’000
Total
US$’000
(268)
−
−
(670)
(938)
(50,351)
11,914
22,209
(1,245)
(17,473)
18
−
−
−
18
(50,601)
11,914
22,209
(1,915)
(18,393)
6,974
(8,588)
(7,378)
8
(43,619)
−
3,326
−
14,831
(1,491)
(26,953)
424
−
(8,568)
8
The Group
Deferred tax assets:
At 1 January 2022
Credited/(charged) to
profit or loss (Note 29)
Exchange difference on
translation
At 31 December 2022
and 1 January 2023
Credited to profit or loss
(Note 29)
Disposal of subsidiary
(Note 11.2)
Exchange difference on
translation
At 31 December 2023
The Group
Deferred tax liabilities
At 1 January 2022
(Charged)/credited to
profit or loss (Note 29)
Exchange difference on
translation
At 31 December 2022
and 1 January 2023
Credited/(charged) to
profit or loss (Note 29)
Exchange difference on
translation
At 31 December 2023
144
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
11
Subsidiaries
The Company
Unquoted equity investments, at cost
At beginning of the year
Less: Accumulated impairment losses
At beginning of the year
Impairment loss
At end of the year
Exchange difference on translation
Unquoted equity investments, net
2023
US$’000
2022
US$’000
5,429
5,815
−
(2,079)
(2,079)
29
3,379
−
−
−
(386)
5,429
Amounts due from subsidiaries
154,329
153,618
Less: Accumulated impairment losses
At beginning of the year
Impairment loss
Exchange difference on translation
At end of the year
(56,515)
(7,692)
(308)
(64,515)
(60,527)
−
4,012
(56,515)
Amounts due from subsidiaries, net
89,814
97,103
Total
93,193
102,532
The amounts due from subsidiaries are loans to subsidiaries, representing an extension of its investments in the subsidiaries.
These amounts are unsecured with indeterminate repayment terms.
The Company evaluates any indication of impairment on the investment in subsidiaries at the end of each reporting period.
The Company carries out a review of the recoverable amount of its investment in subsidiaries based on the higher of its fair
value less cost to sell and value in use.
Cash flow projections used in these calculations are based on financial budgets approved by management. Cash flows
beyond the budget period are extrapolated using the estimated growth rates stated below. The growth rate does not
exceed the long-term average growth rate of the industry in which the CGU operates.
These assumptions are used for the analysis of each CGU within the business segment. Management determines budgeted
gross margins based on past performance and expectations of market developments. The weighted average growth rates
used are consistent with forecasts included in industry reports. The discount rates used are pre-tax and reflect specific risks
relating to the relevant segments. A further decrease in the budgeted gross margin by 1% (2022 – 1%) would not result in
indication of significant further impairment of the carrying amount of the investments in subsidiaries.
145
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
11
Subsidiaries (Cont’d)
In the financial year ended 31 December 2023, the Company recognised a total impairment loss of $9,771,000 (2022 – Nil)
in its cost of investment in and amounts due from OM (Manganese) Ltd (“OMM”) due to the losses incurred during OMM’s
care and maintenance phase. The recoverable amount was determined based on the cash flow projections, with the key
assumptions laid out below.
Key assumptions used for value-in-use calculations:
2023
2022
Malaysia
Australia
Smelting
operations
People’s
Republic
of China
Malaysia
Australia
Smelting operations
10%
31%
2%
12%
31%
0 - 4% before
2028,
0% after 2028
0% before
2028,
0% after 2028
0 - 1% before
2027,
0% after 2027
1 - 2% before
2027,
0% after 2027
0% before
2027,
0% after 2027
Gross margin1
Growth rate2
Discount rate3
9.2%
12.8%
4.3%
6.6%
12.8%
1
2
3
Budgeted gross margin. The gross margin differs due to the different operating efficiencies of the various subsidiaries located in different
geographical locations.
Weighted average growth rate used to extrapolate cash flows beyond the budget period.
Pre-tax discount rate applied to the pre-tax cash flow projections. The discount rates vary due to the geographical locations of the
businesses.
Details of the Group’s material subsidiaries at the end of the reporting period are set out below:
Name
Place of
incorporation/
operation
Held by the Company
OM (Manganese) Ltd. (1)
Australia
Proportion of
ownership interest
and voting rights
held by the Group
2023
%
100
2022
%
100
Held by OM Resources (HK) Limited
OM Materials (S) Pte. Ltd. (2)
Held by OM Materials (S) Pte. Ltd.
OM Materials (Sarawak) Sdn. Bhd. (3)
OM Materials (Qinzhou) Co. Ltd. (4)
Held by OM Materials Trade (S) Pte. Ltd.
OM Materials Trading (Qinzhou) Co. Ltd (4)
Singapore
100
100
Malaysia
PRC
PRC
100
10(6)
100
100
100
100
Principal activities
Owns manganese
mine(5), and rights to
exploration and processing
of manganese ore
Investment holding and
trading of metals and
ferroalloy products
Sales and processing of
ferroalloys and ores
Sales and processing of
ferroalloys and ores
Trading of metals and
ferroalloys products
Note:
(1)
(2)
(3)
(4)
(5)
(6)
audited by Grant Thornton Audit Pty Ltd
audited by Foo Kon Tan LLP
audited by Ernst & Young PLT, Malaysia
audited by Guangxi JiaHai Accountant Affairs Office Co. Ltd. for statutory purposes and reviewed by Foo Kon Tan LLP for group
consolidation
Production ceased on 25 January 2022 and the mine was placed under care and maintenance
Disposed 90% shareholding interest in the financial year ended 31 December 2023 (Note 11.2), and the remaining 10% shareholding
interest is accounted for as an associate
146
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
11
Subsidiaries (Cont’d)
The principal activities of other subsidiaries that are not material to the Group at the end of the reporting period are
summarised as follows:
Principal activities
Investment holding
Investment holding
Investment holding
Investment holding
Logistics services and rental of machinery
Engineering, procurement and construction
services, and trading of metals and
ferroalloy products
Project development and project management
services
Exploration and mining of minerals
Engineering services
Place of incorporation/
operation
The British Virgin Islands
Mauritius
Hong Kong
Singapore
Malaysia
PRC
Malaysia
Malaysia
Malaysia
Number of subsidiaries
2023
2022
1
1
1
1
1
1
2
2
1
1
1
1
1
1
1
2
2
1
11
11
11.1 Acquisition of non-controlling interests (“NCI”) in OM Materials (Sarawak) Sdn. Bhd. (“OM Sarawak”) and OM
Materials (Samalaju) Sdn Bhd (“OM Samalaju”)
On 6 December 2022, the Company’s wholly owned subsidiary, OM Materials (S) Pte. Ltd. (“OMS”), completed
the acquisition of the remaining 25% interests in OM Sarawak and OM Samalaju. The total consideration was
US$120,000,000, which comprised US$109,127,000 for the acquisition of the shares in OM Sarawak and OM Samalaju,
and US$10,873,000 for the repayment of loans to the non-controlling interests.
Immediately prior to the acquisition, the carrying amount of the existing 25% non-controlling interests in OM
Sarawak and OM Samalaju was US$85,987,000. The Group recognised a decrease in non-controlling interests of
US$85,987,000, and a decrease in equity attributable to owners of the Company of US$23,140,000 (comprising a
decrease in capital reserve of US$23,176,000, an increase in hedging reserve of US$1,129,000, and a decrease in
exchange fluctuation reserve of US$1,093,000). The effect on the equity attributable to the owners of the Company
arising from this transaction with non-controlling interests is summarised as follows:
Total consideration
Less: Loan repayment to NCI
Carrying amount of NCI acquired
Excess of consideration paid recognised within equity attributable to owners of the Company
2022
US$’000
120,000
(10,873)
109,127
(85,987)
23,140
11.2 Disposal of 90% interest in OM Materials Qinzhou Co Ltd (“OMQ”)
On 31 October 2023, the Group’s wholly owned subsidiary, OM Materials (S) Pte Ltd (“OMS”) executed a Share Sale
Agreement, for the sale of its 90% equity interest in OMQ, to Beijing Kunpeng Hongsheng Metal Co. Ltd, for cash
consideration of RMB 182.6 million (approximately US$ 25.8 million).
The Group, through OMS, retains a 10% equity interest in OMQ, which is accounted for as an associate (Note 12) as
it retains significant influence in OMQ.
147
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
11
Subsidiaries (Cont’d)
11.2 Disposal of 90% interest in OM Materials Qinzhou Co Ltd (“OMQ”) (Cont’d)
Details of the disposal are as follows:
Carrying amounts of net assets over which control was lost
Property, plant and equipment net of accumulated depreciation/ impairment (Note 4)
Land use rights (Note 5)
Deferred tax assets (Note 10)
Inventories
Trade and other receivables
Cash and cash equivalents
Trade and other payables
Net assets derecognised
Consideration received/receivable
Cash and cash equivalents received
Deferred cash consideration receivable (Note 14)
Total consideration
Gain on disposal
Total consideration
Add: Fair value of remaining 10% interest retained (Note 12)
Add: Realisation of foreign exchange reserve
Less: Net assets derecognised
Gain on disposal (Note 27)
Net cash inflows arising on disposal
Consideration received in cash and cash equivalents
Less: Cash and cash equivalents disposed
Net cash inflows arising on disposal
2023
US$’000
5,999
869
563
964
2,117
120
(251)
10,381
10,452
15,338
25,790
25,790
2,966
1,782
(10,381)
20,157
10,452
(120)
10,332
The deferred cash consideration receivable of US$15,338,000 is included in other receivables (Note 14), and is due
to be received in 2024.
12
Interests in associates
The Group
Cost of investment in associates (1)
At beginning of the year
Addition (Note 11.2)
Exchange difference on translation
At end of the year
Share of post-acquisition profits and reserves, net of dividends
2023
US$’000
2022
US$’000
52,622
2,966
288
55,876
28,231
84,107
56,358
−
(3,736)
52,622
28,253
80,875
(1)
Comprised unquoted equity shares at cost and advances to associates net of repayments. The advances to associates represent
extensions of the investment in associates which are unsecured with indeterminate repayment terms.
Addition during the financial year ended 31 December 2023 relates to the 10% interest in OMQ at fair value (Note 11.2),
arising from the disposal of 90% interest in OMQ. As OMS still retains significant influence over OMQ, the remaining 10%
interest is accounted for as an associate.
148
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
12
Interests in associates (Cont’d)
Details of the Group’s material associate at the end of the reporting period was as follows:
Name
Country of
incorporation
Proportion of effective
ownership interest
and voting rights
held by the Group
Ntsimbintle Mining Proprietary Limited
South Africa
(“NMPL”) (1)
Held by NMPL (2)
Tshipi é Ntle Manganese Mining
Proprietary Limited (“Tshipi Mining”) (1)
South Africa
2023
%
26
13
2022
%
26
13
Principal activities
Investment holding
Exploration and
mining of minerals
(1)
(2)
audited by KPMG Inc.
NMPL holds a 50.1% interest joint venture in Tshipi Mining whose results are equity-accounted in NMPL.
Shares in the Group’s material associate are held by a wholly-owned subsidiary of the Company, OMH (Mauritius) Corp.
All of the Group’s associates are accounted for using the equity method in the Group’s consolidated financial statements.
The financial year end date of NMPL is 30 June (2022 – 28 February). For the purposes of applying the equity method
accounting, the management accounts of NMPL for the year ended 31 December 2023 have been used and appropriate
adjustments have been made as necessary.
Summarised financial information in respect of the Group’s material associate are set out below. The summarised financial
information below represents amounts shown in the associate’s financial statements prepared in accordance with IFRS.
Current assets
Non-current assets (1)
Current liabilities
Non-current liabilities
Net assets
Income (1)
Profit for the year
Total comprehensive income for the year
Ntsimbintle Mining
Proprietary Limited
2023
US$’000
2,335
147,726
(14)
(85,924)
64,123
38,587
19,686
19,686
2022
US$’000
2,773
138,255
−
(93,713)
47,315
52,139
32,080
32,080
Dividends received from associate
5,305
7,868
(1)
Inclusive of equity-accounted results of Tshipi Mining.
149
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
12
Interests in associates (Cont’d)
Reconciliation of the above summarised financial information to the carrying amount of the interest in the associate
recognised in the consolidated financial statements:
Ntsimbintle Mining
Proprietary Limited
Total
2023
US$’000
64,123
85,924
150,047
39,012
40,764
1,263
81,039
2022
US$’000
47,315
93,713
141,028
36,667
40,543
3,579
80,789
Net assets of the associate
Shareholder loans
Proportion of the Group’s ownership
interest in the associate
Goodwill
Currency translation difference
Carrying value
Add:
Carrying value of individually immaterial
associates
Carrying value of Group’s interest in associates
Aggregate information of associates that are not individually material
The summarised financial information of the individually immaterial associates are as follows:
- Profit for the year
- Total comprehensive income for the year
The Group’s share of profit
13
Inventories
The Group
At cost
Raw materials
Work-in-progress
Finished goods
At net realisable value
Raw materials, work-in-progress and finished goods
Total
Recognised as expenses and included in cost of sales:
Cost of inventories (Note 28), inclusive of:
(Write-back)/write-down of inventories to net realisable value
2023
US$’000
64,123
85,924
150,047
39,012
40,764
1,263
81,039
3,068
84,107
2022
US$’000
47,315
93,713
141,028
36,667
40,543
3,579
80,789
86
80,875
2023
US$’000
2022
US$’000
49
49
228
228
2023
US$’000
2022
US$’000
16
76
2023
US$’000
2022
US$’000
86,642
15,018
96,799
198,459
93,890
292,349
494,416
(38,464)
92,064
14,339
82,329
188,732
46,683
235,415
649,686
51,181
Recognised as expenses and included in other operating expenses:
Write-down of inventories to net realisable value (Note 28)
560
561
Included in the above are inventories under consignment arrangement amounting to US$35,877,000 (2022: US$13,044,000).
150
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
14
Trade and other receivables
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
The Company
The Group
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
Trade receivables (i)
−
−
20,806
27,443
Other receivables:
Amounts due from subsidiaries (non-trade)
14,448
6,380
−
−
Deposits and other receivables:
- third party
- associate
Less: Allowance for impairment
of other receivables:
At beginning of the year
Exchange difference on translation
At end of the year
−
−
−
−
14,448
6,380
18,335
−
18,335
−
−
−
−
−
−
(634)
25
(609)
Net other receivables (ii)
Total (i) + (ii)
14,448
14,448
6,380
6,380
17,726
38,532
4,754
220
4,974
(671)
37
(634)
4,340
31,783
The non-trade amounts due from subsidiaries, representing advances, are interest-free, unsecured and repayable on
demand.
Included in the Group’s deposits and other receivables from third parties is tax recoverable of US$353,000 (2022 -
US$122,000) from tax authorities, and the residual balance of the proceeds arising from disposal of 90% interest in OMQ of
US$15,338,000 (2022 – US$ Nil), scheduled to be received in 2024 (Note 11.2).
Trade and other receivables are denominated in the following currencies:
Australian Dollar
Renminbi
United States Dollar
Malaysian Ringgit
Others
The Company
The Group
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
6,447
−
8,000
−
1
6,380
−
−
−
−
151
16,081
21,681
533
86
119
2,726
28,148
703
87
14,448
6,380
38,532
31,783
The credit risk for trade and other receivables is as follows:
By geographical areas
Asia Pacific
Europe
Africa
America
The Company
The Group
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
14,432
6,380
38,082
−
16
−
−
−
−
82
186
182
14,448
6,380
38,532
19,932
−
484
11,367
31,783
151
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
14
Trade and other receivables (Cont’d)
Neither past due nor impaired
Trade and other receivables that were neither past due nor impaired amounting to US$14,448,000 (2022 - US$6,380,000)
and US$38,406,000 (2022 - US$31,693,000) for the Company and the Group respectively related to a wide range of debtors
for whom there was no recent history of default.
Past due but not impaired
The ageing analysis of trade and other receivables past due but not impaired is as follows:
Past due 0 to 3 months
Past due 3 to 6 months
Past due over 6 months
The Company
The Group
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
−
−
−
−
−
−
−
−
80
41
5
126
74
−
16
90
Trade and other receivables that were past due but not impaired related to a number of debtors that have a good credit
track record with the Group. Based on historical default rates, the Group believes that no further impairment allowance is
necessary in respect of trade and other receivables not past due or past due.
15
Capitalised contract costs
The Group
Costs to fulfil service rendered for transportation of goods sold under
CFR and CIF Incoterms
Amortisation recognised as cost of sales during the year
2023
US$’000
2022
US$’000
301
538
538
1,077
The Group’s capitalised contract costs relate to fulfilment costs of freight and insurance for the transportation of goods
sold under CFR and CIF Incoterms. These costs are charged to the profit or loss on a basis consistent with the pattern of
recognition of the associated revenue.
16 Derivatives
Contract/notional
amount
Fair value
through profit or loss
Assets
Liabilities
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
Derivatives:
Foreign exchange forward contracts
10,890
−
137
−
−
−
The Group uses foreign exchange forward contracts to manage some of its foreign currency exposure. These contracts
are not designated as cash flows nor fair value hedges and are entered into for periods consistent with its foreign currency
exposure. Such derivatives do not qualify for hedge accounting.
The forward contracts are used to manage the foreign currency exposures arising from the monetary assets and liabilities
denominated in currencies other than the functional currency of a subsidiary of the Group.
The Group recognised a gain of US$137,000 (2022 – Nil) arising from fair value changes of derivative financial assets. The
fair value changes are attributable to changes in foreign exchange forward rates. The methods and assumptions applied in
determining the fair value of derivatives are disclosed in Note 41.
152
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
17
Cash and bank balances
Cash at bank and on hand
Short−term bank deposits
Total cash and cash equivalents
Add: Cash collateral
Cash and bank balances
The Company
The Group
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
13
−
13
−
13
24
−
24
−
24
59,399
1,092
60,491
9,210
69,701
50,192
3,070
53,262
9,121
62,383
Included in the cash collateral were amounts of US$1,174,000 (2022 - US$1,025,000) and US$7,923,000 (2022 - US$7,984,000)
which were pledged to banks as security for banking facilities and the issuance of environmental bonds (Note 35.3)
respectively. The Group also maintains bank deposits to the benefit of third-party suppliers to the amount of US$113,000
(2022 - US$112,000).
Cash and bank balances (including cash collateral) are denominated in the following currencies:
Australian Dollar
Renminbi
United States Dollar
Malaysian Ringgit
Others
The Company
The Group
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
11
−
2
−
−
13
22
−
2
−
−
24
8,190
14,080
33,026
14,027
378
69,701
9,473
5,127
37,374
9,844
565
62,383
The short-term bank deposits have an average maturity of 1 month (2022 - 1 month) from the end of the financial year with
the following effective interest rates:
The Group
United States Dollar
Malaysia Ringgit
18
Share capital
2023
Per annum
2022
Per annum
4.42%
2.48% to 3.11%
−
1.90%
The Company and The Group
Authorised:
Ordinary shares of US$0.04337 (A$0.05)
(2022 – US$0.04337 (A$0.05)) each
Issued and fully paid:
Ordinary shares of US$0.04304 (A$0.05)
(2022 - US$0.04337 (A$0.05)) each at 1
January
Shares issuance
At 31 December
No. of ordinary shares
Amount
2023
’000
2022
’000
2023
US$’000
2022
US$’000
2,000,000
2,000,000
87,000
87,000
738,623
738,623
32,035
32,035
27,634
766,257
−
738,623
941
32,976
−
32,035
The holders of ordinary shares (excluding treasury shares) are entitled to receive dividends as declared from time to time
and are entitled to one vote per share at meetings of the Company. All shares (excluding treasury shares) rank equally with
regard to the Company’s residual assets.
On 4 December 2023, the Company issued 27,633,464 ordinary shares to JFE Shoji Corporation at an issue price of A$0.472
per share, which raised A$13,043,000 (equivalent to US$8,885,000), of which A$1,382,000 (equivalent to US$941,000)
was capitalised as Share capital at par value of A$0.05 per share, and the balance amount of A$11,661,000 (equivalent to
US$7,944,000) was capitalised as Share premium, within Reserves (Note 20).
153
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
19
Treasury shares
The Company and The Group
No. of ordinary shares
Amount
2023
’000
2022
’000
2023
US$’000
2022
US$’000
At 1 January and 31 December
1,933
1,933
2,058
2,058
Treasury shares relate to ordinary shares of the Company that are held by the Company. During the year, the Company
acquired Nil shares (2022 - Nil shares) in the Company through on-market purchase on the Australian Securities Exchange
or on Bursa Malaysia.
20
Reserves
Share premium
Non-distributable reserve
Capital reserve
Contributed surplus
Hedging reserve
Exchange fluctuation reserve
(Accumulated losses)/Retained profits
[Note (i)]
[Note (ii)]
[Note (iii)]
[Note (iv)]
[Note (v)]
[Note (vi)]
[Note (vii)]
Share premium
At 1 January
Issuance of ordinary shares
At 31 December
Non-distributable reserve
At 1 January
Transfers (from)/to statutory reserve
At 31 December
Capital reserve
At 1 January
Acquisition of non-controlling interests
(Note 11.1)
Transfer to statutory reserve
At 31 December
Contributed surplus
At 1 January and 31 December
Hedging reserve
At 1 January
Cash flow hedges
Acquisition of non-controlling interests
(Note 11.1)
At 31 December
The Company
The Group
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
164,864
−
−
2,593
−
(39,703)
(111,631)
16,123
156,920
7,944
164,864
−
−
−
−
−
−
−
156,920
−
−
2,593
−
(39,758)
(105,484)
14,271
156,920
−
156,920
−
−
−
−
−
−
−
164,864
1,419
(10,947)
−
225
(44,562)
269,440
380,439
156,920
7,944
164,864
7,922
(6,503)
1,419
156,920
7,922
(10,947)
−
272
(40,139)
252,105
366,133
156,920
−
156,920
7,643
279
7,922
(10,947)
12,138
−
−
(10,947)
(23,176)
91
(10,947)
2,593
2,593
−
−
−
−
−
−
−
−
−
−
272
(47)
−
225
(818)
(39)
1,129
272
154
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
20
Reserves (Cont’d)
Exchange fluctuation reserve
At 1 January
Acquisition of non-controlling interests
(Note 11.1)
Currency translation differences
At 31 December
(Accumulated losses)/Retained profits
At 1 January
Profit/(loss) for the year
Dividends
Transfers from/(to) statutory reserve
At 31 December
[Note viii)]
The Company
The Group
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
(39,758)
(36,286)
(40,139)
(33,032)
−
55
(39,703)
(105,484)
1,157
(7,304)
−
(111,631)
−
(3,472)
(39,758)
(91,396)
(3,563)
(10,525)
−
(105,484)
−
(4,423)
(44,562)
252,105
18,136
(7,304)
6,503
269,440
(1,093)
(6,014)
(40,139)
195,158
67,842
(10,525)
(370)
252,105
Notes:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
The share premium reserve comprises the value of shares that have been issued at a premium, meaning the price
paid was in excess of the share’s quotient value. The amount received in excess of the quotient value was transferred
to the share premium reserve.
In accordance with the accounting principles and financial regulations applicable to Sino-foreign joint venture
enterprises, the subsidiaries in the PRC are required to transfer part of their profits after tax to the “Statutory Reserves
Fund”, the “Enterprise Expansion Fund” and the “Staff Bonus and Welfare Fund”, which are non-distributable, before
profit distributions to joint venture partners. The quantum of the transfers is subject to the approval of the board
of directors of these subsidiaries.
The annual transfer to the Statutory Reserves Fund should not be less than 10% of profit after tax, until it aggregates
to 50% of the registered capital. However, foreign enterprises may choose not to appropriate profits to the Enterprise
Expansion Fund.
The Statutory Reserves Fund can be used to make good previous years’ losses while the Enterprise Expansion Fund
can be used for the acquisition of property, plant and equipment and financing daily funds required. The Staff
Bonus and Welfare Fund is utilised for employees’ collective welfare benefits and is included in other payables under
current liabilities in the statements of financial position.
Capital reserve relates to:
(a)
(b)
Difference between the consideration paid and the carrying amount of the non-controlling interests acquired,
and
Capitalisation of various reserves and retained profits in one of the Sino-foreign joint ventures of the Group.
The purpose of the capitalisation is to increase the registered capital of the joint venture.
The contributed surplus of the Company represents the difference between the nominal value of the Company’s
shares issued for acquisition of the subsidiaries and the aggregate net asset value of the subsidiaries acquired.
Under the Companies Act 1981 of Bermuda (as amended), the contributed surplus can be distributed to shareholders
under certain circumstances. At the Group level, the contributed surplus is eliminated against the cost of investment
in subsidiaries.
The hedging reserve represents hedging gains and losses recognised on the effective portion of cash flow hedges.
The cumulative deferred gain or loss on the hedge recognised in other comprehensive income and accumulated
hedging reserves is reclassified to the profit or loss when the forecast transaction is ultimately recognised in the
profit or loss.
The translation reserve comprises all foreign exchange differences arising on the translation of the financial
statements of the Company, foreign subsidiaries and associates stated in a currency different from the Company’s
and Group’s presentation currency.
Retained earnings of the Group comprise the distributable reserves recognised in the preceding year less any
dividend declared. The total of such profits brought forward and the profit derived during the period constitute the
total distributable reserves, that is the maximum amount available for distribution to the shareholders.
(viii)
The Company and The Group
Final tax-exempt (one-tier) dividend of US$0.009915 (A$0.015) per share for
2022 (2021 – US$0.01429 (A$0.02))
2023
US$’000
2022
US$’000
7,304
7,304
10,525
10,525
155
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
21
Borrowings
The Group
Non-current
Bank loans (Note 21.1)
Other borrowings (Note 21.2)
Structuring and arrangement fee
Current
Bank loans (Note 21.1)
Structuring and arrangement fee
21.1 Bank loans
The Group
Bank loans, secured [Note (a)]
Bank loans, secured [Note (b)]
Bank loans, secured [Note (c)]
Bank loans, unsecured
Amount repayable not later than one year
Amount repayable later than one year and not later than five years
2023
US$’000
2022
US$’000
148,172
21,067
169,239
(129)
169,110
96,530
(181)
96,349
265,459
2023
US$’000
1,126
213,533
30,000
43
175,675
29,452
205,127
(310)
204,817
50,200
(277)
49,923
254,740
2022
US$’000
2,976
222,899
−
−
244,702
225,875
96,530
148,172
244,702
50,200
175,675
225,875
Notes:
(a)
In 2022, these loans were secured by a charge over certain Buildings and infrastructure and Plant and machinery of
OMQ.
(b)
These loans are secured by:
•
•
•
•
•
•
•
•
•
•
shares of OM Materials (Sarawak) Sdn Bhd, a company incorporated in Malaysia;
a charge over its property, plant and equipment (Note 4);
a charge over certain bank accounts;
a charge over land use rights (Note 5);
a debenture;
a borrower assignment;
an assignment of insurances;
a shareholder assignment;
an assignment of reinsurances; and
a corporate guarantee from OM Holdings Limited
(c)
This revolving credit facility is secured by a limited deed of debenture and a corporate guarantee from OM Holdings
Limited.
156
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
21
Borrowings (Cont’d)
21.2 Other borrowings
The Group
Bonds, unsecured [Note (a)]
Third party loan, secured [Note (b)]
Amount repayable not later than one year
Amount repayable later than one year and not later than five years
2023
US$’000
2022
US$’000
21,067
−
21,067
−
21,067
21,067
20,952
8,500
29,452
−
29,452
29,452
Notes:
(a)
The bonds issued by a wholly-owned subsidiary of A$30,926,000 (US$21,067,000) to certain key management personnel,
employees and investors of the Group in November 2022 are unsecured and are due for full repayment in 2025.
Coupon of 10% is paid semi-annually in arrears on 30 May and 30 November each year, commencing on 30 May 2023
and continuing throughout the 3 years term. The subsidiary has the right to redeem the outstanding principal amount
together with unpaid accrued interest, on or after the second anniversary of the issue date with prior written notice.
(b)
The loan was secured by a corporate guarantee from OM Holdings Limited. In December 2021, the repayment date
was extended to 4 January 2023. In December 2022, the repayment date was extended to 4 January 2024. The loan was
repaid on 28 November 2023.
21.3 Currency risk
Total borrowings are denominated in the following currencies:
The Group
United States Dollar
Renminbi
Australian Dollar
21.4 Effective interest rates
2023
US$’000
243,266
1,126
21,067
265,459
2022
US$’000
230,812
2,976
20,952
254,740
The effective interest rates of total borrowings at the end of the reporting period are 2.83% to 10.00% (2022 – 2.83% to
10.00%) per annum.
157
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
22
Lease liabilities
The Group
Undiscounted lease payments due:
- Year 1
- Year 2
- Year 3
- Year 4 and onwards
Less: Unearned interest cost
Lease liabilities
Presented as:
- Non-current
- Current
2023
US$’000
2022
US$’000
2,874
2,740
54
36
5,704
(351)
5,353
2,732
2,621
5,353
1,882
1,657
131
47
3,717
(207)
3,510
1,753
1,757
3,510
Interest expense on lease liabilities of US$165,000 (2022 - US$171,000) is recognised within “Finance costs” in the Consolidated
statement of comprehensive income.
Rental expenses not capitalised in lease liabilities but recognised in the profit or loss are set out below:
The Group
Short-term leases
Leases of low-value assets
2023
US$’000
2022
US$’000
1,103
13
2,962
33
Total cash outflows for all leases in the year amounted to US$2,801,000 (2022 - US$2,655,000).
As at 31 December 2023, the Group’s short-term lease commitments at the reporting date are not substantially dissimilar to
those giving rise to the Group’s short-term lease expense for the year.
The Group’s lease liabilities are secured by the lessors’ title to the leased assets.
Further information about the financial risk management are disclosed in Note 38 and leasing activities in Note 34.
Lease liabilities are denominated in the following currencies:
2023
US$’000
2022
US$’000
−
5,014
339
5,353
25
2,910
575
3,510
The Group
Australian Dollar
Malaysian Ringgit
Others
158
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
23
Trade and other payables
Non-current
Trade payables - third party
Other payables
Current
Trade payables
- third party
Amount due to subsidiaries (non-trade)
Accruals
Other payables
Retention monies
Welfare expense payable
Interest payables
Total
The Company
The Group
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
−
−
−
−
58,807
1,921
57
−
−
−
60,785
60,785
60,785
−
−
−
−
62,874
1,793
22
−
−
−
64,689
64,689
64,689
36,612
118
36,730
54,224
99
54,323
130,848
111,990
−
8,307
8,478
4,986
520
425
22,716
153,564
190,294
−
3,238
7,300
3,331
642
103
14,614
126,604
180,927
Non-current trade payables relate to payables to vendors which bear interest of 6.0% (2022 - 5.5%) per annum.
The current amount due to subsidiaries (non-trade) represents advances which are unsecured, interest-free and repayable
on demand.
Trade and other payables are denominated in the following currencies:
Australian Dollar
Renminbi
United States Dollar
Malaysian Ringgit
Others
The Company
The Group
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
34,591
−
26,039
−
155
40,793
−
23,746
−
150
60,785
64,689
2,063
4,178
68,896
114,605
552
190,294
1,905
7,589
62,653
108,530
250
180,927
All trade payables are generally on 30 to 120 (2022 - 30 to 120) days’ credit terms.
159
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
24
Provisions
The Group
Rehabilitation
At beginning of the year
Adjustments from mine development costs (Note 7)
Utilisation
Exchange realignment
At end of the year
Non-current
Current
2023
US$’000
2022
US$’000
4,966
3
(407)
17
4,579
4,579
−
4,579
7,176
450
(2,223)
(437)
4,966
4,778
188
4,966
According to the Mine Management and Environmental Management Plans submitted to the Northern Territory Government
in Australia, the wholly-owned subsidiary, OM (Manganese) Ltd is obligated for the rehabilitation and restoration of areas
disturbed arising from mining activities conducted by OM (Manganese) Ltd. Mine rehabilitation costs are provided for at
the present value of future expected expenditure when the liability is incurred. Although the ultimate cost to be incurred is
uncertain, the Group has estimated its costs based on the rates outlined by the Northern Territory Department of Industry,
Tourism and Trade using current restoration standards and techniques.
25 Deferred capital grant
The Group
Government grant
Non-current
Current
2023
US$’000
2022
US$’000
7,131
6,564
567
7,131
7,698
7,131
567
7,698
A government grant was awarded for the construction of certain items of property, plant and equipment. There are no
unfulfilled conditions or contingencies attached. The movement in the deferred capital grant is due to amortisation of
US$567,000 (2022 - US$564,000) (Note 28).
26
Contract liabilities
The Group
2023
US$’000
2022
US$’000
Transportation of goods sold under CFR and CIF Incoterms
23,326
10,536
The Group’s contract liabilities relate to the Group’s obligation to transport goods sold to customers under CFR and CIF
Incoterms for which the Group has received advance payments from these customers.
Unsatisfied performance obligations in relation to contract liabilities at the end of the reporting period are:
The Group
Aggregate amount of transaction price allocated to contracts that
are partially or fully unsatisfied at the end of the year
2023
US$’000
2022
US$’000
23,326
10,536
The Group expects that 100% of the transaction price allocated to the unsatisfied performance obligations at the end of the
current year may be recognised as revenue during the next reporting period.
160
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
27 Other income
The Group
Interest income from banks
Commission income
Government grant
Gain on disposal of subsidiary (Note 11.2)
Sundry income
28
Profit before income tax
The Group
Profit before income tax has been arrived at after
charging:
Depreciation of property, plant and equipment:
- cost of sales
- other operating expenses
Gain on disposal of property, plant and equipment (1)
Gain on disposal of right-of-use-assets (1)
Write off of property, plant and equipment (1)
Amortisation of land use rights (1)
Write-off of exploration and evaluation costs (1)
Amortisation of mine development costs (1)
Depreciation of investment property (1)
Depreciation of right-of-use assets (1)
Cost of inventories recognised as expenses
and included in cost of sales
Write-down of inventories to net realisable value (1)
Amortisation of deferred capital grant (2)
Foreign exchange gain - net (1)
Rental expenses:
- short-term leases
- leases of low-value assets
Finance costs:
- loans
- lease liabilities
- others
Employee benefits expenses
2023
US$’000
2022
US$’000
982
1,537
23
20,157
809
23,508
1,205
1,607
170
−
984
3,966
Note
2023
US$’000
2022
US$’000
4
5
6
7
8
9
13
13
25
22
22
32
18,168
14,036
32,204
(396)
(173)
822
126
−
490
8
2,853
16,213
8,537
24,750
(3)
−
10,052
143
130
392
7
2,356
494,416
649,686
560
(567)
(4,554)
1,103
13
27,104
165
250
27,519
41,008
561
(564)
(592)
2,962
33
17,447
171
1,034
18,652
47,656
161
(1)
(2)
These are included under “Other operating expenses” in the Consolidated statement of comprehensive income.
This is included under “Cost of sales” in the Consolidated statement of comprehensive income.
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
29
Income tax expense
A provision for enterprise income tax on the subsidiaries operating in the People’s Republic of China (“PRC”) has been made
in accordance with the Income Tax Law of PRC concerning Foreign Investment Enterprises and Foreign Enterprises and
various local income tax laws.
A Global Trader Programme is granted by the Singapore Ministry of Trade and Industry to a Singapore subsidiary, OM
Materials (S) Pte. Ltd., for a concessionary rate of 10% valid up to December 2028, subject to the fulfilment of specific
conditions.
In November 2017, OM Materials (Sarawak) Sdn. Bhd. (“OM Sarawak”) was awarded Pioneer Status by the Malaysian
Investment Development Authority (“MIDA”), which entitles OM Sarawak exemption from tax for a period of 5 years
effective 1 December 2016 to 30 November 2021 on 100% of statutory income derived from the production of ferro-silicon,
silicon manganese and high carbon ferromanganese. OM Sarawak has provided for 24% tax on 100% of its taxable income
for the financial years ended 31 December 2022 and 2023, and is currently working towards meeting all the conditions set
by MIDA to be eligible for a second 5 year tax exemption period (from 1 December 2021 to 30 November 2026) on 70% of
its statutory income. Upon satisfaction by OM Sarawak of the MIDA conditions, OM Sarawak’s annual tax position will be
adjusted accordingly.
Taxation has been provided at the appropriate tax rates prevailing in Australia, Singapore, Malaysia, Hong Kong and PRC in
which the Group operates on the estimated assessable profits for the year. These rates generally range from 10% to 30%
for the reporting period.
The Group
Current taxation:
- Singapore income tax (concessionary tax rate of 10%)
- PRC tax (tax rate of 25%)
- Malaysia (tax rate of 24%)
Deferred taxation
Under/(over) provision in prior years:
- current taxation
- deferred taxation
Income tax
Other taxation:
- withholding tax
- profits-based royalty and special mining taxes
2023
US$’000
2022
US$’000
447
376
1,440
7,508
9,771
550
968
1,518
11,289
3,085
(27)
3,058
14,347
2,754
1,441
642
17,455
22,292
(27)
−
(27)
22,265
516
257
773
23,038
A reconciliation of the income tax applicable to the accounting profit at the applicable tax rates to the income tax expense
for the reporting period was as follows:
The Group
Profit before income tax
Tax at applicable tax rates
Tax effect of non-taxable revenue (1)
Tax effect of non-deductible expenses (2)
Tax effect of allowances and concessions given by tax jurisdictions
Utilisation of deferred tax assets on temporary difference not recognised
in previous years
Deferred tax assets not recognised
Effects of share of results of associates
Under/(over) provision in prior years
2023
US$’000
2022
US$’000
32,707
105,629
4,944
(1,988)
7,264
(1,369)
−
1,690
(770)
1,518
11,289
26,211
(137)
1,556
(2,058)
(2,021)
−
(1,259)
(27)
22,265
(1) Non-taxable revenue relate mainly to gain on disposal of subsidiary.
(2)
Non-deductible expenses relate mainly to depreciation and amortisation of non-qualifying assets, non-trade loan interest expenses,
provision of expenses and foreign exchange differences.
162
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2023
US$’000
2022
US$’000
(47)
(47)
30
Cash flow hedges
The Group
Cash flow hedges:
Loss arising during the year
31
Profit per share
The Group
Basic profit per share is calculated based on the consolidated profit attributable to owners of the parent divided by the
weighted average number of shares (excluding treasury shares) on issue of 738,734,000 (2022 - 736,690,000) ordinary
shares during the financial year.
Fully diluted profit per share is calculated based on the consolidated profit attributable to owners of the parent divided by
738,734,000 (2022 - 736,690,000) ordinary shares (excluding treasury shares). The number of ordinary shares was calculated
based on the weighted average number of shares on issue during the financial year adjusted for the effects of all dilutive
convertible bonds and warrants. Dilutive potential ordinary shares are deemed to have been converted into ordinary shares
at the beginning of the year or if later, the date of the issue of the potential ordinary shares.
The following table reflects profit or loss and share data used in the computation of basic and diluted profit per share from
continuing operations for the years ended 31 December:
The Group
Weighted average number of ordinary shares for the purpose of basic profit
per share
Effect of dilutive potential ordinary shares
Weighted average number of ordinary shares for the purpose of
diluted profit per share
Profit figures were calculated as follows:
Profit for the year attributable to owners of the Company
Effect of dilutive potential ordinary shares
Profit for the purposes of diluted profit per share
32
Employee benefits expense
The Group
Directors’ fees
Directors’ remuneration other than fees:
- Directors of the Company
- Directors of the subsidiaries
- Defined contributions plans
Key management personnel (other than Directors):
- Salaries, wages and other related costs
- Defined contributions plans
Other than key management personnel:
- Salaries, wages and other related costs
- Defined contributions plans
2023
’000
2022
’000
738,734
736,690
−
−
738,734
736,690
2023
US$’000
2022
US$’000
18,136
−
18,136
67,842
−
67,842
2023
US$’000
2022
US$’000
438
1,339
2,059
132
2,784
219
6,971
31,475
2,562
41,008
499
2,401
1,847
80
3,125
261
8,213
36,967
2,476
47,656
163
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
33
Related party transactions
In addition to the related party information disclosed elsewhere in the financial statements, the following amounts are
transactions with related parties based upon commercial arm’s length terms and conditions:
The Group
(a) Trading and other transactions
Commission charged to an associate
Commission charged by an associate
Sales of goods to an associate
Purchases of goods from an associate
(b) Key management personnel
2023
US$’000
2022
US$’000
1,537
(481)
−
1,607
(549)
1,864
(64,247)
(77,096)
Bonds invested by key management personnel (Note 21.2(a))
Interest expense on bonds issued to key management personnel
5,152
501
5,124
43
34
Leases
(i)
The Group as lessee
(a)
Properties
The Group leases several land and buildings for operational and storage purposes (Note 9).
The Group makes prepayments for usage of land (Note 5) in the PRC and Malaysia under leasing agreements where the
Group constructs buildings and infrastructure for office and operational use.
There are no externally imposed covenants on these property lease arrangements.
(b)
Plant and machinery, office equipment and motor vehicles
The Group makes monthly lease payments to acquire plant and machinery and office equipment used for manufacturing
and operational activities. The Group also acquires motor vehicles under hire purchase arrangements to render internal
logistics support. These plant and machinery, office equipment and motor vehicles are recognised as the Group’s right-of-use
assets (Note 9). The lease agreements for plant and machinery, office equipment and motor vehicles prohibit the Group from
subleasing them to third parties.
Information regarding the Group’s right-of-use assets and lease liabilities are disclosed in Note 9 and 22 respectively.
(ii)
The Group as lessor
Investment property
Operating leases, in which the Group is the lessor, relate to investment property (Note 8) owned by the Group with a
remaining lease term of 32 months. The operating lease contract contains market review clauses in the event that the lessee
exercises its option to renew. The lessee does not have an option to purchase the property at the expiry of the lease period.
The Group’s revenue from rental income received on the investment properties are disclosed in Note 8.
The future minimum rental receivable under non-cancellable operating leases contracted for the reporting date are as
follows:
The Group
Undiscounted lease payments to be received:
- Year 1
- Year 2
- Year 3
164
2023
US$’000
2022
US$’000
74
74
49
197
57
−
−
57
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
35
Commitments
35.1
Capital commitments
The following table summarises the Group’s capital commitments:
The Group
Capital expenditure contracted but not provided for in
the financial statements:
- acquisition of property, plant and equipment
35.2 Mineral Tenements
2023
US$’000
2022
US$’000
7,101
23,370
In order to maintain the mineral tenements in which a subsidiary is involved, the subsidiary has committed to fulfil the
minimum annual expenditures in accordance with the requirements of the Northern Territory Department of Industry,
Tourism and Trade for the next financial year, as set out below:
The Group
Mineral tenements annual expenditure commitments
35.3
Environmental bonds
2023
US$’000
66
2022
US$’000
81
A subsidiary has environmental bonds to the value of US$7,923,000 (2022 - US$7,984,000) lodged with the Northern
Territory Government (Department of Industry, Tourism and Trade) to secure environmental rehabilitation commitments.
The US$7,923,000 (2022 - US$7,984,000) of bonds are secured by US$7,100,000 (2022 - US$7,062,000) of bonds issued under
financing facilities and certain cash backed.
36 Other matters
Sponsor Guarantee issued under the terms of the Power Purchase Agreement with Syarikat Sesco Berhad
Pursuant to the Power Purchase Agreement (“PPA”) between a subsidiary, OM Materials (Sarawak) Sdn. Bhd. (“OM Sarawak”),
and Syarikat Sesco Berhad (“SSB”), OM Holdings Limited (“OMH”) issued guarantees to SSB for certain obligations of OM
Sarawak under the PPA.
The guarantees disclosed above do not fall into the category of financial guarantees as they do not relate to debt instruments.
The purpose of these guarantees is essentially to enable SSB to provide the power supply to OM Sarawak on the condition
that these guarantees are provided by OMH in the event that there are any unpaid claims arising from the PPA owed to SSB.
There are no bank loans involved in these guarantees. As such, there is no need for the guarantees to be fair valued.
Project Support guarantee issued under the terms of the Facilities Agreement and the Project Support Agreement
OM Sarawak entered into a project finance Facilities Agreement (“FA”) for a limited recourse senior project finance debt
facility.
Concurrently, OMH and OM Materials (S) Pte Ltd (“OMS”), the ultimate and immediate holding company of OM Sarawak,
entered into a Project Support Agreement (“PSA”) in relation to the project finance debt facility. The PSA governs the rights
and obligations of OMH and OMS. These obligations and liabilities are severally liable.
The PSA will lapse upon the final payment of the project financing facilities.
Tourag Fatality
On 24 August 2020 a significant wall failure in Tourag pit resulted in the death of an employee of OM (Manganese) Ltd.
(“OMM”). The incident was immediately reported to NT Police, the Department of Industry, Tourism and Trade and NT
WorkSafe, with mining operations suspended immediately.
OMM has complied with all notices issued by NT WorkSafe and the Northern Territory Coroner to provide all information to
assist with their investigations.
165
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
36 Other matters (Cont’d)
Tourag Fatality (Cont’d)
On 30 August 2021, NT WorkSafe served OMM with a summons to attend court, charging OMM with contraventions of
Division 5 of the Work Health and Safety (National Uniform Legislation) Act 2011 (NT) (“Act”). OMM indicated its intention to
enter a guilty plea to a “Category Two” failure to comply with a work health and safety duty, contrary to section 32 of the Act.
The plea hearing was held on 18 September 2023, and a decision was delivered on 11 October 2023, where OMM was
convicted and ordered to pay A$487,500 (US$323,000) in fines and a levy in the amount of A$1,000 (US$660). OMM
also agreed to pay the Work Health Authority’s costs of and incidental to the proceedings in the amount of A$193,000
(US$128,000).
The amounts have been fully settled as at 31 December 2023.
37 Operating segments
For management purposes, the Group is organised into the following reportable operating segments:
Mining
Smelting
Exploration and processing of manganese ore
Production of ferrosilicon, manganese alloys, silicon metal and manganese sinter ore
Marketing and Trading
Trading of manganese ore, ferrosilicon, manganese alloys, silicon metal and manganese
sinter ore
Each of these operating segments is managed separately as they require different resources as well as operating approaches.
The reporting segment results exclude the finance income and costs and share of results of associates, which are not
directly attributable to the business activities of any operating segment, and are not included in arriving at the operating
results of the operating segment.
Sales between operating segments are carried out at arm’s length.
Segment performance is evaluated based on the operating profit or loss which in certain respects, as set out below, is
measured differently from the operating profit or loss in the consolidated financial statements.
166
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
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E
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
37 Operating segments (Cont’d)
Reconciliation of the Group’s reportable segment profit to the profit before income tax is as follows:
The Group
Reportable segment profit
Finance income
Share of results of associates
Finance costs
Profit before income tax
2023
US$’000
54,109
982
5,135
(27,519)
32,707
2022
US$’000
114,659
1,205
8,417
(18,652)
105,629
The Group’s non-current assets (other than deferred tax assets) are divided into the following geographical areas:
Asia Pacific
Europe
Middle East
Africa
America
Non-current assets
2023
US$’000
2022
US$’000
444,949
460,898
−
−
81,039
−
525,988
−
−
80,789
−
541,687
The geographical location of non-current assets is based on the physical location of the assets.
The Group’s revenues from external customers by different geographical areas are disclosed in Note 3.
38
Financial risk management objectives and policies
The Company and the Group are exposed to financial risks arising from its operations and use of financial instruments.
The key financial risks include credit risk, liquidity risk, interest rate risk and foreign currency risk. The Company’s and the
Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise
adverse effects from the unpredictability of financial markets on the Company’s and the Group’s financial performance.
Risk management is carried out by the Finance Division under policies approved by the Board of Directors. The Finance
Division identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units.
There has been no change to the Company’s and the Group’s exposure to these financial risks or the manner in which it
manages and measures the risk. Market risk exposures are measured using sensitivity analysis indicated below.
38.1
Credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the Group to incur
a financial loss. The Group’s exposure to credit risk arises primarily from trade receivables, cash and cash equivalents and
other financial assets. For trade receivables, the Group adopts the policy of dealing only with customers of appropriate
credit history, and obtaining sufficient security where appropriate to mitigate credit risk. For other financial assets, the
Company and the Group adopt the policy of dealing only with high credit quality counterparties.
The Company’s and the Group’s objective is to seek continual growth while minimising losses incurred due to increased
credit risk exposure.
Credit exposure to an individual counterparty is restricted by credit limits that are approved by management based on
ongoing credit evaluation. The counterparty’s payment profile and credit exposure are continuously monitored at the entity
level by the respective management.
168
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FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
38
Financial risk management objectives and policies (Cont’d)
38.1
Credit risk (Cont’d)
Exposure to credit risk
As the Company and the Group do not hold any collateral for trade receivables, the maximum exposure to credit risk for
each class of financial instruments is the carrying amount of that class of financial instruments presented on the statements
of financial position.
The Company’s and the Group’s major classes of financial assets are bank deposits and trade and other receivables. Cash
is held with reputable financial institutions. Further details of credit risks on trade and other receivables are disclosed in
Note 14.
Guarantees
The Company provides corporate guarantees to certain banks and suppliers of its subsidiaries. The Company’s maximum
exposure to credit risk in respect of the corporate guarantees at the reporting date is equal to the facilities drawn down by
the subsidiaries in the amounts of US$369,768,000 (2022 - US$331,309,000). At the reporting date, the Company does not
consider it probable that a claim will be made against the Company under these corporate guarantees.
There is no impact on the corporate guarantee as there are no differential rates given by the financial institutions.
Undrawn credit facilities
The Group has undrawn credit facilities of approximately US$45,676,000 (2022 - US$69,829,000) at the reporting date.
38.2
Liquidity risk
Liquidity risk is the risk that the Company or the Group will encounter difficulty in raising funds to meet commitments
associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result
from an inability to sell a financial asset quickly at close to its fair value.
The Company’s and the Group’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial
assets and liabilities. The Company’s and the Group’s objective is to maintain a balance between continuity of funding and
flexibility through the use of stand-by credit facilities.
The table below analyses the maturity profile of the Company’s and the Group’s financial liabilities based on contractual
undiscounted cash flows:
The Group
As at 31 December 2023
Trade and other payables (1)
Borrowings
Lease liabilities
As at 31 December 2022
Trade and other payables (1)
Borrowings
Lease liabilities
Less than
1 year
US$’000
Between
2 and 5
years
US$’000
Over
5 years
US$’000
Total
US$’000
Total
carrying
amount
US$’000
155,791
37,978
115,990
185,372
2,874
2,830
274,655
226,180
126,412
57,847
69,558
239,615
1,882
1,835
197,852
299,297
−
−
−
−
−
−
−
−
193,769
189,494
301,362
265,459
5,704
5,353
500,835
460,306
184,259
177,427
309,173
254,740
3,717
3,510
497,149
435,677
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FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
38
Financial risk management objectives and policies (Cont’d)
38.2
Liquidity risk (Cont’d)
The Company
As at 31 December 2023
Trade and other payables
Financial guarantees
As at 31 December 2022
Trade and other payables
Financial guarantees
Less than
1 year
US$’000
Between
2 and 5
years
US$’000
Over
5 years
US$’000
Total
US$’000
Total
carrying
amount
US$’000
60,785
60,785
370,217
64,689
64,689
331,309
−
−
−
−
−
−
−
−
−
−
−
−
60,785
60,785
60,785
60,785
370,217
−
64,689
64,689
64,689
64,689
331,309
−
(1)
Excluded VAT tax payable of US$314,000 (2022 - US$808,000), advance from customers of US$486,000 (2022 -
US$2,692,000) from trade and other payables
The above table analyses the financial instruments of the Group for which contractual maturities are essential for an
understanding of the timing of the cash flows into relevant maturity groupings based on the remaining period from the
balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted
cash flows.
The Group has various lines of credit with major financial institutions for the purpose of drawing upon short term borrowings,
through the pledging of bills receivables or inventories. Further, management closely monitors the Group’s capital structure
to ensure that there are adequate funds to meet all its obligations in a timely and cost effective manner.
The Group manages its liquidity risk by ensuring there are sufficient cash and current assets to meet all their normal
operating commitments in a timely and cost-effective manner and having adequate amount of credit facilities. The Group
has the ability to generate additional working capital through financing from financial institutions.
38.3
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of the Company’s and the Group’s financial instruments
will fluctuate because of changes in market interest rates.
The Company’s and the Group’s exposure to interest rate risk arises primarily from their bank borrowings, cash collaterals
and fixed deposits.
Sensitivity analysis for interest rate risk
At the end of the reporting period, if United States Dollar (“USD”) interest rates had been 75 (2022 - 75) basis points lower/
higher with all other variables held constant, the Company’s and the Group’s profit net of tax would have been higher/lower
by the amounts shown below, arising mainly as a result of lower/higher interest expense on bank borrowings and lower/
higher interest income on cash and bank balances.
The Company
Resulting effect:
profit/(loss)
The Group
Resulting effect:
profit/(loss)
2023
US$’000
2022
US$’000
2023
US$’000
2022
US$’000
United States
Dollar (USD)
- lower 75 basis points
(2022 - 75 basis points)
- higher 75 basis points
(2022 - 75 basis points)
−
−
−
−
1,226
1,107
(1,226)
(1,107)
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FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
38
Financial risk management objectives and policies (Cont’d)
38.4
Foreign currency risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.
Currency risk arises when transactions are denominated in foreign currencies.
The Group operates and sells its products in several countries and transacts in foreign currencies. As a result, the Group is
exposed to movements in foreign currency exchange rates arising from normal trading transactions, primarily with respect
to AUD, Renminbi (“RMB”) and Malaysian Ringgit (“MYR”).
Sensitivity analysis for foreign currency risk
The following table demonstrates the sensitivity to a reasonably possible change in the AUD, RMB and MYR exchange rates
against USD, with all other variables held constant, of the Company’s and the Group’s profit before income tax.
The Group
Australian Dollar
- strengthened 5% (2022 - 5%)
- weakened 5% (2022 - 5%)
Renminbi
- strengthened 5% (2022 - 5%)
- weakened 5% (2022 - 5%)
Malaysian Ringgit
- strengthened 5% (2022 - 5%)
- weakened 5% (2022 - 5%)
The Company
Australian Dollar
- strengthened 5% (2022 - 5%)
- weakened 5% (2022 - 5%)
2023
2022
Resulting effect -
profit/(loss)
US$’000
Resulting effect -
profit/(loss)
US$’000
(739)
739
1,243
(1,243)
(5,253)
5,253
(1,407)
1,407
(664)
664
(136)
136
(5,045)
5,045
(1,720)
1,720
39
Capital risk management
The Company’s and the Group’s objectives when managing capital are:
•
•
•
•
to safeguard the Company’s and the Group’s abilities to continue as a going concern;
to support the Company’s and the Group’s stability and growth;
to provide capital for the purpose of strengthening the Company’s and the Group’s risk management capability; and
to provide an adequate return to shareholders.
The Company and the Group actively and regularly review and manage its capital structure to ensure optimal capital structure
and shareholders’ returns, taking into consideration the future capital requirements of the Company and the Group and
capital efficiency, prevailing and projected profitability, projected operating cash flows, projected capital expenditures and
projected strategic investment opportunities. The Company has formalised a dividend policy in February 2023, to seek to
maintain an annual dividend payout of between 10% to 30% of net profit after tax attributable to owners, subject to a cap of
50% of free cash flow, and other considerations as determined by the Board of Directors. This dividend policy takes effect
from the year commencing 1 January 2023. No dividend was declared for the financial year ended 31 December 2023.
Management reviews its capital management approach on an on-going basis and believes that this approach, given the
relative size of the Company and the Group, is reasonable.
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FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
39
Capital risk management (Cont’d)
The Company monitors capital using a gearing ratio, which is net debt divided by total equity:
The Group
Borrowings
Less: Cash and bank balances (including cash collateral)
Net debt
Total equity
Gearing ratio
2023
US$’000
265,459
(69,701)
195,758
2022
US$’000
254,740
(62,383)
192,357
414,626
399,734
0.47
0.48
There were no changes in the Company’s and the Group’s approach to capital management during the year.
40
Financial instruments
Accounting classifications of financial assets and financial liabilities
Note
At
fair value
US$’000
At
amortised cost
US$’000
Total
US$’000
31 December 2023
The Group
Financial assets
Trade and other receivables (1)
Cash and bank balances (including cash collateral)
Derivatives
The Company
Financial assets
Trade and other receivables
Cash and bank balances
31 December 2022
The Group
Financial assets
Trade and other receivables (1)
Cash and bank balances (including cash collateral)
The Company
Financial assets
Trade and other receivables
Cash and bank balances
14
17
16
14
17
14
17
14
17
−
−
137
137
−
−
−
37,718
69,701
−
37,718
69,701
137
107,419
107,556
14,448
13
14,461
14,448
13
14,461
29,247
62,383
91,630
6,380
24
6,404
29,247
62,383
91,630
6,380
24
6,404
(1)
Excluded tax recoverable of US$353,000 (2022 - US$122,000) and advance to suppliers of US$461,000 (2022 -
US$2,414,000) from trade and other receivables
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FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
40
Financial instruments (Cont’d)
Accounting classifications of financial assets and financial liabilities (Cont’d)
Note
At
amortised cost
US$’000
31 December 2023
The Group
Financial liabilities
Borrowings
Lease liabilities
Trade and other payables (1)
The Company
Financial liabilities
Trade and other payables
31 December 2022
The Group
Financial liabilities
Borrowings
Lease liabilities
Trade and other payables (1)
The Company
Financial liabilities
Trade and other payables
Total
US$’000
265,459
5,353
189,494
460,306
265,459
5,353
189,494
460,306
60,785
60,785
60,785
60,785
254,740
3,510
177,427
435,677
254,740
3,510
177,427
435,677
64,689
64,689
64,689
64,689
21
22
23
23
21
22
23
23
(1)
Excluded VAT tax payable of US$314,000 (2022 - US$808,000), advance from customers of US$486,000 (2022 -
US$2,692,000) from trade and other payables
41
Fair value measurement
Definition of fair value
IFRSs define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
Fair value hierarchy
Financial assets and financial liabilities measured at fair value in the statements of financial position are grouped into
three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the
measurement, as follows:
•
•
•
Level 1:
quoted prices (unadjusted) in active markets for identical assets and liabilities;
Level 2:
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly; and
Level 3:
unobservable inputs for the asset or liability.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
41
Fair value measurement (Cont’d)
Financial assets and liabilities carried at fair value:
Quantitative disclosures of fair value measurement hierarchy for financial assets held at fair value as at 31 December are as
follows:
31 December 2023
The Group
Derivative assets (Note 16)
Foreign exchange forward contracts
31 December 2022
The Group
Derivative assets (Note 16)
Foreign exchange forward contracts
Level 1
US$’000
Level 2
US$’000
Level 3
US$’000
Total
US$’000
−
137
−
137
−
−
−
−
Fair value of foreign exchange forward contracts is calculated by reference to current forward exchange rates for contracts
with similar maturity profiles.
There have been no transfers between levels during the financial year.
Financial assets and liabilities that are not carried at fair value but whose carrying amounts approximate that of fair value
The carrying amounts of trade and other receivables (Note 14), cash and bank balances (Note 17), current trade and other
payables (Note 23), current lease liabilities (Note 22) and current borrowings (Note 21) are reasonable approximations of fair
values due to their short-term nature.
The carrying amounts of non-current trade and other payables (Note 23), non-current lease liabilities (Note 22) and non-
current borrowings (Note 21) are reasonable approximations of fair values as their interest rate approximates the market
lending rate.
42
Contingencies
Construction claim
On 8 July 2022, one of the subsidiaries of the Group received a claim from a third party for the sum of approximately MYR
30 million (equivalent to approximately US$6,529,000) and costs in respect of a construction project. As at the date of this
report, no determination has been made of the possible outcome of the claim.
174
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023 ASX & BURSA SECURITIES ADDITIONAL INFORMATION
Pursuant to the listing requirements of the Australian Securities Exchange (“ASX”), the shareholder information set out below was
applicable as at 1 April 2024.
1.
A.
SHAREHOLDER INFORMATION
Distribution of Equity Securities
Distribution schedule and number of holders of equity securities as at 1 April 2024
Distribution
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
More than 100,000
TOTAL
Fully Paid Ordinary Shares
(OMH)
711
985
425
633
180
2,934
% of Issued Capital
0.05
0.37
0.45
2.61
96.52
100.00
There were 405 holders holding less than a marketable parcel of ordinary shares on ASX.
B.
Twenty Largest Shareholders
The names of the twenty largest holders of quoted shares are listed below:
Shareholder Name
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
BNP PARIBAS NOMS PTY LTD
HANWA CO LTD
BNP PARIBAS NOMINEES PTY LTD
JFE SHOJI CORPORATION
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
UOB KAY HIAN NOMINEES (ASING) SDN BHD EXEMPT AN FOR UOB KAY HIAN PTE
LTD (A/C CLIENTS)
BNP PARIBUS NOMS PTY LTD UOBKH A/C R’MIERS
LOW NGEE TONG
MS HENG SIOW KWEE
CITIGROUP NOMINEES (ASING) SDN BHD EXEMPT AN FOR UBS AG HONG KONG
(FOREIGN)
CITIGROUP NOMINEES (ASING) SDN BHD EXEMPT AN FOR OCBC SECURITIES PRIVATE
LIMITED (CLIENT A/C-NR)
MS JULIE ANNE WOLSELEY
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR HAMID MAHDAVI ARDABILI
HSBC NOMINEES (ASING) SDN BHD EXEMPT AN FOR MORGAN STANLEY & CO.
INTERNATIONAL PLC (CLIENT)
STRATFORD SUN LIMITED
MR GLENN RUSSELL STEDMAN + MRS NUTCHARAT STEDMAN
TOTAL HELD BY 20 LARGEST SHAREHOLDERS
OTHERS
TOTAL
Listed Ordinary Shares
Number
Percentage Quoted
245,681,783
133,827,136
46,818,477
38,381,878
32,500,000
28,565,976
27,633,464
18,925,691
10,684,136
10,063,711
10,000,000
9,029,800
8,843,000
6,944,100
5,562,002
5,175,190
4,995,000
4,837,100
4,650,000
3,820,000
656,938,444
109,318,357
32.06%
17.47%
6.11%
5.01%
4.24%
3.73%
3.61%
2.47%
1.39%
1.31%
1.31%
1.18%
1.15%
0.91%
0.73%
0.68%
0.65%
0.63%
0.61%
0.50%
85.73%
14.27%
766,256,801
100.00%
175
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
ASX & BURSA SECURITIES ADDITIONAL INFORMATION
C.
Substantial Shareholders
An extract of the Company’s Register of Substantial Shareholders (who hold 5% or more of the issued capital) is set out
below.
Shareholder Name
Huang Gang
Amplewood Resources Ltd
Low Ngee Tong
Heng Siow Kwee
Listed Ordinary Shares
Number of Shares
% of Shares
103,618,830
100,260,653
68,861,231
66,081,669
13.52%
13.08%
8.99%
8.62%
D.
Restricted Securities
There were no restricted securities on issue as at 1 April 2024.
E.
Voting Rights
Subject to the Bye-laws of the Company and to any rights or restrictions attaching to any class of shares, every member
is entitled to be present at a meeting in person, by proxy, representative or attorney. In accordance with the Company’s
Bye-laws, voting rights in respect of ordinary shares are on a show of hands whereby each member present in person or by
proxy or representative shall have one vote and upon a poll each member present in person or by proxy or representative
shall have one vote for every share held.
2.
TAXATION
The Company was incorporated in Bermuda and is not taxed as a company in Australia.
3. ON-MARKET BUY-BACK
The Company is not currently undertaking an on-market buy-back.
4.
INVESTOR INFORMATION
(a)
Stock Exchange Listing
OM Holdings Limited shares are listed on the Australia Securities Exchange (ASX).
The Company’s ASX code is OMH.
OM Holdings Limited shares are listed on the Bursa Malaysia Securities Berhad (Bursa Securities).
The Company’s Bursa code is OMH (5298)
(b)
Company Information Contact
For further information about OM Holdings Limited please contact the Singapore head office:
OM Holdings Limited
#09 – 03A Singapore Post Centre
10 Eunos Road 8
Singapore 408600
Telephone:
Facsimile:
Email:
Website:
(65) 6346 5515
(65) 6342 2242
om@ommaterials.com
www.omholdingsltd.com
176
OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
ASX & BURSA SECURITIES ADDITIONAL INFORMATION
(c)
Share Registry Enquiries
Shareholders who require information about their shareholdings, dividend payments, notification of tax file
numbers, changes of name, address or bank account details or related administrative matters should contact the
Company’s share registry:
Computershare Investor Services Pty Limited
Level 17, 221 St Georges Terrace
PERTH WA 6000
Postal Address:
GPO Box D182
PERTH WA 6840
Telephone:
Telephone:
Facsimile:
Website:
Email:
(within Australia) 1300 850 505
(outside Australia) (61) 3 9415 4000
(61) 3 9473 2500
www.computershare.com
web.queries@computershare.com.au
Tricor Investor & Issuing House Services Sdn Bhd
Registration No.:
197101000970 (11324-H)
Address:
Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3,
Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur
Telephone:
Facsimile:
Email:
+603-2783 9299
+603-2783 9222
is.enquiry@my.tricorglobal.com
Each enquiry should refer to the shareholder number which is shown on the issuer sponsored holding statements
and dividend statements.
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OM HOLDINGS LIMITED | ANNUAL REPORT 2023OM HOLDINGS LIMITED | ANNUAL REPORT 2023
O M H O L D I N G S L I M I T E D | A N N UA L R E P O R T 2 0 2 3
Incorporated in Bermuda
(ARBN 081 028 337)
(Malaysian Registration No. 202002000012 (995782-P))