JOHANNESBURG (miningweekly.com) – South African ferrochrome producer Merafe Resources on Tuesday reported a 4% decline in half-year ferrochrome production to 150 000 t, from 157 000 t in the first six months of 2010.

The company, which operates a joint venture with Xstrata, said volumes decreased in the January to June period because it brought forward a number of furnace refurbishments.

“The refurbishment activities largely focused on the more efficient Premus furnaces, resulting in lower efficiencies and increased production costs,” Merafe, led by CEO Stuart Elliot, said in a statement.

Merafe lowered the chrome venture’s operating capacity to 50% until August, from a previous guidance of 65% during the winter months. The producer said that stainless steel demand from particularly Europe and China was weaker.

The JSE-listed firm would publish its interim results next week.
 

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