German metals group Cronimet is considering setting up a chrome smelter in South Africa following its purchase of South African chrome mining deposits, CEO Guenter Pilarsky said on Monday.
A consortium headed by Cronimet in late April acquired the mining rights to a substantial chrome ore deposit located in the Western Limb of the Bushfeld geographical complex near Northam in South Africa.
Privately-owned Cronimet plans to start chrome ore mining in 2008 and hopes 2009 ore production will reach 400,000 tons.
"We have plans to increase this to 600 000 tons annually later and we also have plans to build a ferro-chrome smelter there or to acquire one", Mr Pilarsky added.
Until any smelter is operational, the South African chrome ore will be exported worldwide, but current rapidly-rising energy costs mean Cronimet is still considering where to build any smelter.
"We are considering locations with lower energy costs," he said. "This could be Botswana or Mozambique or possibly in the direction of Asia, this will depend on where the electricity costs are most beneficial." Final capacity size would depend on energy costs.
Source and further details: IOL
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