Tuesday, October 20, 2009

Merafe Ferrochrome Production Down 47 Per Cent

Merafe Resources said Tuesday that ferro chrome production for the Xstrata-Merafe Chrome Venture for the first nine months of 2009 was 47 percent lower than the same period in 2008 as a result of the temporary suspension of up to 80 percent of production capacity, as announced in early 2009.

In response to improved demand, furnace production has been restored to 85 percent of the Venture's total capacity, the company said.

During the third quarter, the rand continued to strengthen against the US dollar and is currently trading near its 14 month highs. The strong rand has meant margins remain under pressure, Merafe said.

On 5 October 2009, Merafe announced that the European benchmark ferro chrome price had been settled at $1.03 per pound for the fourth quarter of 2009, an increase of 16 percent from $0.89 per pound in the third quarter of 2009.

For the third quarter, attributable production was 63kt compared with 79kt in the same quarter last year. Attributable production for the nine months ended September amounted to 126kt, compared with 238kt for the same period last year.

Source: Business Report

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