Ferrochrome output at the Xstrata-Merafe chrome venture in South Africa had declined by one-fifth in the third quarter of 2009, 
JSE-listed Merafe Resources reported last week.

Ferrochrome production between January and September dropped by 47% as a result of the temporary suspension of up to 80% of its capacity in early 2009, as ferrochrome prices bottomed out and the company scrambled to maintain costs.

The Xstrata-Merafe venture produced 
126 000 t in the nine months under review, compared with the 283 000 t in the corresponding period of 2008, while it produced 63 000 t during the third quarter of this year, compared with the 79 000 t during the third quarter in 2008.

Merafe said that margins remained under pressure in the third quarter, as the South African rand continued to strengthen against the dollar.

In early September, furnace production was restored to 85% of the chrome venture’s capacity, in response to the improved market demand for ferrochrome, which is used in stainless steel.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.