JOHANNESBURG (miningweekly.com) – An ongoing strike at Glencore Merafe Chrome Venture’s western mines, which are, as a result, not operational, will not impact on output or sales obligations, said JSE-listed black-owned and -managed ferrochrome company Merafe Resources.
Outlining the company’s quarterly performance to shareholders in a statement on Friday, Merafe explained that workers downed tools in a protected strike on September 25 after employer, employees and union representatives failed to reach an agreement.
Wage negotiations were successfully concluded at its eastern mines, eastern smelters and western smelters.
Merafe said that owing to alternative ore sources, the strike would not influence ferrochrome production.
The matter was addressed by the group in its statement to stakeholders as it reported a 14% decline in ferrochrome production during the third quarter of 2014, with the production levels of Glencore Merafe Chrome Venture at 69% of operating capacity.
“This lower production was [owing] to planned maintenance taking place during the high electricity tariff winter months of July and August, as opposed to the prior year [when] maintenance was performed in the first half of the year, [as a result of] the Eskom buy-back agreements,” Merafe noted.
Merafe's attributable ferrochrome sales volumes during the quarter under review were 18% lower than the third quarter of 2013, owing to weaker demand and pricing.