Speaking to a media delegation at Consolidated Minerals’ Woodie Woodie minesite yesterday, chief executive Glenn Baldwin – the man hand-picked by the company’s Ukrainian billionaire owner Gennadiy Bogolyubov to run his global resource portfolio – said with phase one of the due diligence process between both parties now complete, it was now down to talks between the owners: Bogolyubov, a 12% shareholder in OM Holdings, and OMH chief executive Peter Toth.

“The phase one due diligence has now been done, will there be a phase two? Well that is now down to the owners and I have no feedback beyond that,” Baldwin said.

Earlier this year OMH announced to the market it was conducting due diligence on the Woodie Woodie mine as part of an investigation into a “possible transaction” involving the operation – and possibly its own Bootu Creek mine in the Northern Territory.

In a somewhat confusing release, OMH said both parties were investigating a possible acquisition of an interest in Woodie Woodie by OMH to effect a business combination involving the companies’ respective Australian manganese operations and to determine whether any potential strategic, operating and/or marketing synergies could be achieved as a result of such a transaction, which could create the world’s second-largest low phosphorus siliceous high-grade manganese ore producer.

Baldwin said there were no plans to go public and list the company on the Australian Securities Exchange.

“A listing is not on the table at the moment and we are not looking to expand our portfolio in Australia,” he said.

“I have been with the company since February and it is not something I have mentioned or discussed with Gennadiy.

“We have bitten off enough with the Woodie Woodie expansion and Coobina re-starting operations.”

Bogolyubov spent $A1.3 billion acquiring Woodie Woodie back in 2007 which, this calendar year, is looking to produce 1.2 million tonnes per annum of high-grade manganese lump.

It has already produced 603,000 dry tonnes of 47.2% manganese for the first half of this year, compared to 961,000dt at 47.4% manganese last year and 818,000t at 45% manganese in 2008.

Since 2008, a further $45 million has also been spent on capital investments at the minesite and, going forward, an extra $40 million is to be directed towards exploration to push out the mine life to 10 years and bed down further growth opportunities.

Down the road towards Newman, Consolidated Minerals is also looking to re-start production from its Coobina chromite mine and has earmarked $6 million in capital expenditure to re-start operations by October.

It continues to assess its options in relation to its Beta Hunt nickel assets near Kambalda in WA after sale tenders last year fell short of the mark.

Baldwin said the options included re-starting operations, an outright sale, joint venture or separate listing.