JOHANNESBURG (miningweekly.com) – Merafe Resources has lifted attributable ferrochrome production from the Glencore-Merafe chrome venture by 3% year-on-year to 92 000 t in the quarter ended December 31.
The company said in a report on Friday that the improved output was the result of the start-up of Project Lion II, which was partially offset by additional planned maintenance on other furnaces operated by the venture.
Merafe sold 85 000 t of ferrochrome over the period at an average benchmark price of $1.15/lb, while production levels for the three months had averaged 88% of operating capacity utilisation.
“[Our] attributable ferrochrome sales volumes were 18% lower in the fourth quarter compared with the corresponding 2013 period, as a result of weaker demand and logistical constraints. ,” it outlined.
Meanwhile, the 2014 full-year ferrochrome production volumes were 5% higher than the prior year, averaging 84% of operating capacity utilisation.
The Johannesburg-listed group produced 334 000 t of ferrochrome in the 12 months ended December 31, selling 316 000 t at an average European benchmark price of $1.18/lb.
“The ramp-up of Project Lion II is on track and is expected to reach full capacity by mid-2015,” it outlined.