ConsMin buys 11% stake in OM Holdings

Miner OM Holdings says it is seeking to clarify the intentions of Consolidated Minerals, which has bought an 11 per cent stake in the company.

In a brief statement today, OMH said it had been advised that ConsMin's wholly-owned Stratford Sun Ltd held over 52.7 million shares, or 11 per cent of the issued capital.

News of the purchase sent shares in OMH up 24 per cent to a brief high of $1.40 before last trading at $1.33 at 12:39 AEDT.

The purchase by privately owned ConsMin follows the company's decision earlier this month to place its Kambalda nickel operations and Coobina chromite mine in the Pilbara into care and maintenance.

Some 180 jobs were expected to be lost.

ConsMin's main focus will be its Woodie Woodie manganese operation in the Pilbara, which has a workforce of 154 employees and 210 staff.

ConsMin is owned by Ukrainian backed company Palmary Enterprises, which won a protracted $1.2 billion takeover battle last year.

OM Holdings is currently operating its Bootu Creek manganese mine in the Northern Territory.