JOHANNESBURG (miningweekly.com) – South African ferrochrome producer Merafe Resources said on Wednesday that ferrochrome production rebounded strongly during its first quarter of 2010 in response to rising demand.

The company produces ferrochrome in a joint venture with diversified mining company Xstrata.

The venture saw a 316% increase in production to 79 000 t for the quarter, compared with the 19 000 t for the same period last year.

Further, Merafe noted that the European Union benchmark ferrochrome price had increased by 35% from $1,01/lb in the first quarter of 2010, to 1,36/lb in the second quarter.

This increase was set against the continued strengthening of the rand against the dollar and South Africa's electricity price increases.

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