Zimasco To Increase Ferrochrome Production

Sinosteel Subsidiary To Treble Production

China’s Sinosteel Corporation has announced plans to increase production at its Zimbabwe Mining and Smelting Company subsidiary by 300 percent.

Mr Zhang Suwei, Sinosteel South Africa managing director, told reporters in South Africa that the firm will expand ferrochrome production from the current 210 000 tonnes a year to between 500 000 and 600 000 tonnes. Zimasco is said to have access to the world’s second largest reserves of chrome after South Africa. Two furnaces were opened in April last year following the liberalisation of the Zimbabwean economy.

Sinosteel has a 92 per cent stake in Zimasco and has an option to buy the remaining eight percent, however it is one of the companies expected to comply with Zimbabwe’s new Indigenisation and Economic Empowerment regulations that seeks to cede 51 percent shareholding to locals, regulations that have been greeted with a mixed response.

Ferro Alloys Corporation Looking For Strategic Partners

Steelmakers Circle Ferrochrome Manufacturer

India’s Ferro Alloys Corporation is looking for strategic partners as the company looks to move up to the next stage.

Joint managing director Ashish K Saraf admitted to Indian TV station NDTV that his company is looking for a tie-up and that preliminary approaches have been made to steelmakers Baosteel, Posco, Vedanta, JSW, Tata Steel and Amtek Auto.

"We are actively looking to bring in strategic investors into Ferro Alloys. It could be Tata Steel, Bao Steel etc, anyone who has capacities and requirement for ferro-chrome," Mr Saraf told NDTV.
The company has also given a mandate to E&Y to look for international partners and sources suggest that part of the mandate is a sale of up to 75% of the equity in Ferro Alloys Corporation and 47% in associated company FACOR Alloys. These are the stakes held by the company’s promoters with the balance held by financial institutions, corporate bodies and the general public.

Ferro Alloys Corporation has significant chrome ore mining assets including its complex in Orissa, and this is what makes the company so attractive to steelmakers
Sources suggest that any bid for Ferro Alloys is likely to be in the region of Rs40-45 a shares – a 50% premium over the current market prices – which would value the promoter holding at around Rs600 crore (US$135 million).

China, South Africa Sign Trade Deals

Chrome Ore Purchase Included In $300 Million Deal

China and South Africa have signed a series of deals worth $US300 million to the African nation. The deals were signed on Wednesday during a visit by Jia Qinglin, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), during his goodwill visit to South Africa. Mr Jia was in Pretoria to attend the China-South Africa Economic and Trade Forum.

The deals, involving almost 30 companies from the two countries, include the purchase of South African chrome ore, a vital raw material in the manufacture of steel.

Ontario Lowlands Set For Mineral Boom

Significant Mineral Development In Ontario's Ring of Fire

The provincial government of Ontario has announced plans to develop the James Bay Lowlands in the north of the province.

More than 20 mining companies are hoping to cash in on an area believed to contain high-grade deposits of nickel, copper, zinc, gold, chromite and palladium.

The government plans to build a railway, roads and processing facilities in an area known locally as the Ring of Fire.

James Bay Lowlands is an extremely wet area on the edge of Canada’s boreal forest, some 300-400km from any existing permanent infrastructure; however investors are concentrating on a 12 km area with the Lowlands region. Currently, access to the general area is by float plane and helicopter.

Significant preparatory work, such as environmental assessments and feasibility studies will be needed before the real work can begin. Whatever infrastructure is built will depend on the nature of the mineral projects, however it is thought that winter roads on ice and snow would probably suffice for most projects, which can be adapted to seasonal production. However, there are plans for a 320km rail line which will link Nakina, north of Lake Superior, to chromite mines in the Ring Of Fire. This is because, unlike some other mineral projects in the area, chromite mining is expected to be a year-round activity.

Canada Chrome has staked mining claims along one possible route in order to secure a right-of-way. “We’re in the early process of evaluating the project,” says Nels Ojard, the firm’s group manager for special projects. Mr Ojard added that the project is probably five to seven years from becoming a reality.

Frank Smeenk, president of Canada Chrome’s parent company, KWG Resources, said it is too early to tell whether processing facilities such as smelters and concentrators will be built at the Ring of Fire or elsewhere. This depends largely on the consistency of an electricity supply.

“In the fullness of time there will probably be a (power) line along the railroad,” Mr Smeenk said. “With the economic downturn in Ontario the demand for electricity has fallen out a bit, so there’s lots of power in Ontario. The problem with it is the price is very high.”

Zimbabwe Suspends Chrome Ore Export Ban

Zimbabwe has suspended a ban on the export of raw chrome ore. The ban will be lifted for an 18-month period during which small-scale miners will be able to export the mineral.

The ban was brought in last year when the Zimbabwean government permitted only trade in refined chrome products, a move which put many small-scale exporters out of business as they had no capabilities to refine the ore, however this result has led Mines and Mining Development Minister Obert Mpofu to announce a lifting of the ban.

“We had imposed the ban to ensure that producers exported value-added products and not just raw chrome because, that way, the country was losing millions in potential revenue.But we have shelved this for 18 months” Mr Mpofu explained.

The minister also said that the government has relaxed legislation governing the gold sector to facilitate the entry of local enterprises into the sector.

“We have . . . allowed small-scale gold-miners to access licences to buy and sell their own gold. Because of our previous regulations that criminalised dealing in and possession of gold, these people were smuggling it to South Africa or selling it to illegal dealers here.” Mr Mpofu said. “Government was losing a lot money that way, but now the dealers can even buy from the gold panners and sell directly to the market.”

Chromex Turns In Profit

AIM-listed, Cromex Mining turned in a profit of £195,000 for the year ended 30 September 2009, compared with a £1.4m loss in 2008.
The company has two key mining assets on the Bushveld Complex in South Africa, which between them have total resources of approximately 41 million tonnes of chromite.
Chromex successfully commissioned its processing facility at the Stellite open cast chrome mine in South Africa during the course of the year, thus enabling it to take advantage as the chrome market began to recover towards the end of 2009. The commissioning of the first phase was completed in August 2009 and used stockpiles mined in the early part of the financial year. This allowed mining operations at Stellite to be suspended during a period of adverse market conditions. Full mining restarted in January 2010.
Stellite will initially produce approximately 20,000 run of mine (ROM) tonnes per month, increasing to 40,000 ROM tonnes per month once a dense media separation circuit (DMS) is installed at the plant. This is expected to be completed during Q3 of 2010.

Both Stellite, and the Mecklenburg mine on the east limb of the Bushveld, are owned and operated by South African registered Chromex Mining Co, which is 74% owned by Chromex and 26% owned by their Black Economic Empowerment partner Umnotho WeSizwe.


Development at Mecklenburg project has been deferred pending the conclusion of a court case with Samancor Chrome Limited who applied to the South African High Court in 2008, to set aside the decision to award Chromex the Mining Rights.

The company said that it continues to consolidate its position as a long term chrome producer in southern Africa. Chromex has agreed to acquire 49% of Falvect Mining Ltd, a Zimbabwe-based company with chrome assets.

Gulf Mining Opens Oman's First Chrome Benefication Plant

Omani mining company, Gulf Mining Materials Company, opened the country’s first chrome ore beneficiation plant this week at Wadi Mahram in the north east of Oman. When commissioned, the plant will have an intake capacity of 15,000 tonnes per month.

Gulf Mining’s own chromite mine is situated close to the plant although the company says it will also process ore from other mines. It is envisaged that the finished chrome concentrate will be exported principally to companies in China and India.

Gulf Mining began its chromite ore mining operations in 2006, although up to now it has exported its chromite in raw form. The company is also active in laterite quarrying with a laterite quarry at Barka which mines around 30,000 tonnes per month. This is exported to the nearby United Arab Emirates. Marble quarrying is expected to commence shortly.

The opening of the chrome ore beneficiation plant is part of the company’s plan to diversify into value added processes. The company also hopes to begin mining for copper ore, iron ore, kaolin and limestone, among other minerals.


Des Nogalski

Gindalbie, Anshan Sign Co-operation Deal

Australian iron ore miner, Gindalbie Metals and its Chinese shareholder Anshan Iron and Steel Group (Ansteel), have taken their co-operation a stage further with a deal to develop metallurgical coal, manganese, chromite and nickel projects, and pellet plants and steel mills in Australia.

Gindalbie and Ansteel currently co-operate on an iron ore project at Karara in Western Australia.

"The assets to be targeted will primarily be in the carbon steel materials sector ... as well as downstream processing opportunities such as pellet plants and steel mills," Gindalbie said in a statement on Wednesday.

The statement added: "Ansteel will contribute its extensive experience as a global iron ore and steel company and access to capital to potential joint development opportunities which can provide it with long-term sources of supply of raw materials from Australia. Gindalbie will contribute its geological and resource project expertise, contacts and knowledge base within the Australian resource sector to actively identify, explore and develop quality resource projects."
Gindalbie managing director, Garret Dixon, said the two partners had already identified several opportunities and will be stepping up their search in the months ahead.

Last year Ansteel and the West Australian government agreed to undertake a feasibility study to construct the state’s first steel mill at the Oakajee industrial estate near Geraldton, which is centred on a new deep water export port. Land clearing for the project is well advanced and exports are slated to commence in 2011.

Ansteel is Gindalbie's largest shareholder with a 36.2 per cent stake.

Assmang To Produce Ferromanganese At Machadodorp Works

South African ferrochrome producer Assmang has announced to shareholders that it plans to convert one of the furnaces at its Machadodorp Works to produce high-carbon ferromanganese, rather than ferrochrome. The converted furnace is expected to produce 4000 tonnes per month of HCFeMn and production will commence by the middle of this year.

In its statement Assmang said that it needs to meet higher than expected demand for high-carbon ferromanganese but that it does not have excess capacity at its Cato Ridge Works to expand production.

The company said that it still expects to meet its contractual obligations for ferrochrome and that it is committed to continuing ferrochrome production. Its ferrochrome furnaces were idle for much of 2009.

Chromex Reopens Stellite Chrome Mine

South African chrome miner Chromex Mining has recommenced mining at its Stellite opencast chrome mine on the Western Limb of the Bushveld Complex in South Africa. The decision follows improved market conditions which have led to the drawdown of its stockpiles over the past six months.

The Stellite operation will initially produce around 20,000 tonnes per month increasing to 40,000 tonnes per month following improvements to its beneficiation plant which are expected to be completed in Q3 2010.

Chromex currently produces 42% and 44% metallurgical grade chrome concentrate and the Company hopes to be in a position to market a sized lumpy chrome product in addition to chemical and metallurgical grade concentrates.

Chromex CEO Russell Lamming said, "Despite the challenging chrome market conditions over the past year we have continued to invest in our operations, channelling our focus into building a cost efficient producing chrome mine at Stellite. In this vein, with market conditions beginning to improve, and a solid orebody containing circa 31.9 million tonnes of chromite to utilise, we feel that the time is right to recommence our mining operations and deliver an uplift in value for shareholders in 2010."

Ruukki To Expand Into SA Mining

Finnish ferrochrome producer Ruukki Group expects to expand into mining in South Africa in 2011 to supply ore for its Mogale Alloys smelting operations.

. “We expect to acquire the prospecting rights this year and starting mining operation in 2011,” CEO Alwyn Smit said on the sidelines of the Mining Indaba in Cape Town on Wednesday. “We are looking at ore deposits with relatively easy access to chrome ore,” he added.

ENRC Reports Increased Output

Kazakh miner Eurasian Natural Resources Corp. PLC said on Wednesday that Q4 ferroalloys production was up 55% from a year earlier. Output rose to 448,000 metric tons, up from 290,000 tons a year earlier.

ENRC also produced 984,000 tons of saleable chrome ore in the three months to Dec. 31, compared with 704,000 tons during the same period a year earlier while the company’s iron division mined 10.6 million tons of ore, a rise of 74% from 6.11 million tons a year earlier.

Aluminium output was 36,000 tons for the quarter, a rise of 16% from the 31,000 tons produced a year earlier.

The company said late last year that it expects 2010's full-year output at its core ferrochrome and iron ore operations to match 2008 levels. Almost a third of its production capacity was idled for much of 2009.

Kemi Chrome Ore Mine Could Be Bigger Than Thought

Outokumpu's Kemi mine has more mineral resources than originally thought and could be mined for hundreds of years at double the planned annual production volumes, the firm said on Tuesday.

"We have ready plans and preparedness to extend the mining operations and to double the ferrochrome production if so decided," Outokumpu CE Juha Rantanen said in a statement.

"The reassessment of our investment decision depends on the economic outlook and market situation as well as on the energy question, as the production of ferrochrome consumes high amounts of electricity," he said.

Outokumpu said based on recent seismic research Kemi's chrome ore deposits extend to the depth of 2-3 kilometres, or even 4 kilometres, while it is possible the chromitite layer extends to at least 2-2.5 kilometres or even deeper.

The Kemi mine is the only chromium mine in the European Union area. It produces chromite concentrates used as raw material in Outokumpu's ferrochrome smelter in Tornio, and has an annual output of about 1,3-million tons of ore.

Source: Mining Weekly

Eti Krom Sells Chrome Ore Production To End February

Within 3 weeks of releasing its chrome ore sales prices for Q1 of 2010, Turkey's ETI KROM has sold 140,000 tonnes of chrome ore to China and contracts will be fulfilled until end of February.

ETI KROM had declared its 42% grade lumpy chrome ore price for January and February as USD 310 per tonne to USD 320 per tonne and USD 330 per tonne to USD 340 per tonne respectively.

Within three weeks company received enquiries for more than 300,000 tonnes for Q1 deliveries. After negotiations, ETI KROM signed contracts with customers for prices of USD 315 per tonne to 325 per tonne on a 42% basis for 140,000 tonnes.

ETI KROM revised its February and March prices to USD 340 to 350 per tonne and USD 360 to 370 per tonne respectively, mainly because of transportation cost increases and winter conditions.

Source: Steel Guru

Turkish Chrome Ore Market In A Bullish Mood

Asian Metal reports that now many Turkish chrome ore suppliers are offering lumpy chrome ore 42% at above USD 300 per tonne CIF CFR China due to the tight supply in such a winter condition. Meanwhile, the Pakistani chrome ore market follows Turkish chrome ore trend with a high price level.

A major producer in Turkey reported to Asian Metal that the chrome ore market is bullish, as they have received many recent enquiries from Chinese buyers. According to the source, he signed contracts with a total quantity of 80,000 tonnes and their price range for lumpy chrome ore 40% to 42% was between USD 315 and USD 325 per tonne CFR China.

He said that "I heard many Turkish chrome ore suppliers increase their offers for lumpy chrome ore 42% to above USD 300 per tonne CFR China due to tight supply in such a special season." He added that as the supply in the following weeks would be tighter and tighter, the price of Turkish chrome ore market is likely to go up further.

A Turkish chrome ore trader offered about USD 300 per tonne CIF China for 2,000 tonnes of lumpy chrome ore 42% to 40% recently.

The trader said that "Although we received many enquiries from Chinese buyers and those buyers ask for USD 10 to USD 15 per tonne lower than our offers, we would rather watch the market than sell our stocks at low prices. I think Chinese buyers will come back to accept our prices in January."

A Pakistani chrome ore trader informed that they offered for 1,000 tonnes of lumpy chrome ore 40% to 42% at about USD 300 per tonne CIF Chinese main ports recently, but there was no deal concluded with Chinese buyers recently.

According to the source, they sold 1,000 tonnes of the material at about USD280 per tonne CIF Shanghai port a week ago. It added that "Now we refuse to sell the material at below USD290 per tonne CIF CMP, as we expect higher chrome ore prices next month, just following Turkish chrome ore market trend."

Source: Steel Guru/Asian Metal

Indian Steel Ministry Seeks More Say On Mine Licences

The Steel Ministry has sought absolute powers from the government on grant of mining rights for iron ore and other minerals to steel firms, a request that would, if granted, expedite projects, including that of Posco and ArcelorMittal, which are stuck for want of secure raw material supply.

"...All matters pertaining to exercise of powers on behalf of the Central Government in respect of iron ore, manganese ore and chrome ore should be delegated to the Ministry of Steel," Steel Secretary Atul Chaturvedi said in a letter to the Cabinet Secretary K M Chandrasekhar.

Under the existing rules, grant of mineral concession for all minerals, including iron, manganese and chrome ores, rests with the ministry of mines, which gives final approval to the recommendations of the state government.

"...I would request you to make necessary amendments in the GoI (Allocation of Business) Rules, 1961 to make provision for exercise of the powers of the Central Government by Ministry of Steel under the provisions of MMDR Act, in respect of iron ore, manganese ore and chrome ore," Chaturvedi wrote.

However, such a move may deepen the rift between the steel and the mines ministries, that differ over matters related to iron ore export and grant of leases among others.

When contacted Mines Secretary Santha Sheela Nair said, "We have not received any formal communication on it and as and when required we will send a reply to the Cabinet Secretary. If he is looking after the interest of his ministry, I will protect the interest of my ministry."

Source: Business Standard

Chromex Takes Stake In Zimbabwe Mine

Chromex Mining a chrome mining company focused in Southern Africa, has concluded a binding Heads of Agreement to acquire 49 percent of Falvect Mining.

Falvect, a company owned and operating in Zimbabwe was acquired for a nominal consideration.

Under the terms of the acquisition, Chromex will have the exclusive right to co-develop all Falvect chrome concessions in the Shurugwi region and tribute agreements in the Ngezi area.

Chromex will market all the chrome products produced from those operations.

“In return, the company will provide working capital into Falvect and funding for the development of current projects and any additional acquisitions in Zimbabwe, which is host to significant high grade chrome ore deposits.

“A technical review of the contained mineralisation will commence once final agreements have been concluded,” said Chromex.

In line with the development of its business, Chromex is already investigating the economics of setting up beneficiation facilities in Zimbabwe.

Source: Zimbabwe Telegraph

Zimbabwe Lifts Chrome Ore Export Ban

The Zimbabwe government has lifted the ban on chrome ore and chrome fines exports, the Minerals Marketing Corporation of Zimbabwe has said.

The move is intended to plug leakages, encourage value addition and to help miners re-equip through chrome pledges.

The lifting of the ban, it is expected, will run for one-and-a-half years before a further review.

"The Minerals Marketing Corporation wishes to advise that the ban on export of chrome ore and chrome fines has been lifted for an 18 months window with effect from of November 1, 2009," MMCZ said.

A senior official with the Ministry of Mines and Mining Development, who requested anonymity, said the Government had lifted the ban to enable local miners to mechanise their operations.

He said Government realised that most of its fledgling mining operations did not have resources to afford key but expensive machinery.

The source said it was Government understanding that miners could pledge their chrome for mining machinery, which is expensive to acquire.

High-grade chrome, which is found mostly in the Midlands province along the Great Dyke, is also found in Shurugwi, Mutorashanga, Lalapanzi and Guinea Fowl.

"Most of our people do not have resources and so lifting the ban will empower them as they would be able to marshal resources.

"They will be able to get external loans to buy machines," said the source.

The ban was temporarily lifted last year, but was restored as mining firms and individuals started abusing the waiver.

Local miners would accrue debts that they could not settle creating problems for Government as the guarantor of some of the deals.

Government first considered banning of raw chrome exports around 2007 in an attempt to encourage local value addition to the mineral.

Mines and Mining Development Minister Obert Mpofu, speaking on the sidelines of the Common Market for Eastern and Southern Africa Summit in June this year, said the ban was effected as a loss control measure and to encourage value addition to the mineral.

Minister Mpofu said the ban was meant to plug one of the major holes through which the country had been losing a lot of revenue.

"We have already spoken to some producers and exporters on the issue.

"The country is losing a lot of revenue through the unregulated sale of such high value minerals resources as chrome and chromite products, which would generate huge revenues if sold through the right channels," Minister Mpofu was quoted as saying.

He said some producers, such as the Zimbabwe Mining and Smelting Company and Zimbabwe Alloys, were already smelting raw chrome into such semi-finished products as ferrochrome.

Zimbabwe still has abundant buyers for its chrome products, mainly in South Africa, China and Europe who are willing to buy stockpiles of the mineral.

Source: Zimbabwe Herald

SA Ferrochrome Producers Call For Chrome Ore Export Restrictions

SA’s ferrochrome producers are calling for government support against their Chinese counterparts in what has emerged as another trade skirmish between the two countries.

The battle to retain leadership of the global ferrochrome market and remain a key supplier to the Chinese stainless steel industry amplifies the struggle of clothing and textile makers against a cheap Chinese goods onslaught.

Ferrochrome producers have called for restrictions on chromite ore exports to China, which is 99%-dependent on the imports — largely from SA — for its ferrochrome production.

But the proposals are not likely to win support from platinum producers, who produce chromite ore as a by-product for export.

The ferrochrome lobby hopes that by increasing the cost and limiting the quantity of chromite ore exported, the price of Chinese ferrochrome would have to rise, making them more competitive.

The proposed quota and export duty on chromite ore would be a tit-for-tat response to China’s imposition of a stiff 40% export duty on metallurgical coke, which is the sole ingredient that South African ferrochrome producers import — largely from China.

The Chinese government is subsidising various raw material imports (including chromium) to foster beneficiation.

Ferrochrome manufacturers have met the government, and yesterday with MPs, to lobby for urgent protectionist measures.

They say that Chinese competition, together with escalating electricity tariffs and the stronger rand, have threatened their international competitiveness.

Most expect to suffer a “significant loss” this year as a result of the plunge in demand due to the global recession.

The seven producers in the lobby group — including Xstrata Alloys, Samancor Chrome and International Ferrometals — represent about 90% of SA’s ferrochrome production and about 44% of global production.

SA has about 65% of the world’s chrome reserves.

Xstrata Alloys MD Deon Dreyer told Parliament’s mineral resources committee the producers had been undermined by the recent surge in Chinese ferrochrome production.

In a document presented to the Department of Mineral Resources and MPs, the manufacturers asked for legislation to curtail unbeneficiated chromite ore exports from SA to international ferrochrome-producing countries. These exports should be restricted to integrated ferrochrome producers only and limited to 30% of the ore-equivalent ferrochrome production capacity.

This would mean that for chromite ore exports to increase there would have to be an increase in investment in beneficiation capacity. In addition, an export duty of 100 a ton of chromite ore should be payable, along the lines of a measure adopted in India.

“The introduction of Chinese ferrochrome production and the consequent surge in traded ore since 2004 has seen integrated (mining and smelting) production declining from 86% in 2004 to 75% in 2008. SA’s market share over the same period has declined from 51% to 44% against China’s growth in market share from 9% to 18%,” the document said.

As a result of the displaced market share to China, South African capacity idled at 28% last year, representing a 2,5bn loss of sales to China.

Source: Business Day

Turkey Chrome Exports Up 40%

According to Turkish government statistics, Turkey exported 276,647 tonnes of chrome ore in July 2009, up by 40% YoY as compared with July 2008.

Russia, which imported 5,050 tonnes of chrome ore in July and 63,003 tonnes during January to July 2009 period, became the second biggest Turkish chrome ore importer.

In addition, Turkey exported 13,066 tonnes of ferrochrome in July, with 12,852 tonnes having been shipped to China.

During January to July 2009 period, 55,472 tonnes of ferrochrome were exported, up by 67% YoY as compared to the same period of 2008.

Source: Steel Guru