Friday, May 23, 2008

IFM Plans To Produce Own Power

INTERNATIONAL Ferro Metals' (IFM's) interim results show that ferrochrome producers are being buffeted by the same winds as platinum producers.

South Africa is a leading producer of ferrochrome, and the disruption to electricity boosted ferrochrome as well as platinum group metals prices.

Lower production as a result of electricity outages was offset at revenue level by higher prices. The spur of higher prices is also encouraging platinum and ferrochrome producers to think creatively about providing their own infrastructure to maintain production as much as possible.

IFM has been enlarging its own water reservoir, and is discussing a project with another mine in the area to treat effluent. It also plans to invest Rand200m to generate electricity from gases produced by its furnaces to make up for a 10% cutback in electricity .

Source: Business Day, Johannesburg sourced at AllAfrica.com

Minerals and Metals at www.minerals-and-metals.com

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