Tuesday, May 5, 2009

Xstrata-Merafe Ferrochrome Production Down 76 Per Cent

First-quarter ferrochrome production at the Xstrata-Merafe chrome venture was 76% lower than for the same period in 2008, the JSE-listed Merafe Resources said on Tuesday.

Merafe’s attributable production for the quarter was 19 000 t of ferrochrome, compared with 79 000 t for the same period the year before.

The indicative published price for the output was US 79 c/lb, compared to US 121 c/lb for the same period in 2008.

Merafe, headed by CEO Steve Phiri, said that 17 of the chrome venture’s 20 furnaces, equivalent to some 80% of annual production capacity, was suspended during the first quarter as destocking continued in response to weak demand.

The European benchmark price has since fallen 10 c US/lb below the Q1 price of 79 c US/lb.

Source: Mining Weekly

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