BHP Billiton spin-off South32 is set to write down the value of its manganese business in the company's first major setback.
The miner has delayed the restart of three of its four furnaces at its South African Metalloys manganese alloy smelter, due to a 20 per cent fall in the price of the metal in the last year.
Manganese alloy is one of the world's most widely used metals and is essential to steel and aluminium production.
But its prices are expected to remain low, similar to iron ore and coal, due to weaker Chinese demand.
South32 said it expects its move to have implications for the fair value of its Samanco joint venture with Anglo American, the world's largest Manganese producer.
I see this as an opportunity for OMH, if we can make good margins at low prices this business will flourish. Bring on some news.
OMH Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
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