The decision of Assmang and its partner, African Rainbow Mineral (ARM), to place its long-standing Machadodorp ferroalloys operation on care and maintenance at the end of April was largely the result of uncompetitive electricity tariffs, ARM CEO Mike Schmidt said at this month’s presentation of results. As a replacement, the company was proceeding on schedule and within budget with its Sakura ferroalloys project, in Malaysia, where steady-state production of 170 000 t of manganese alloy a year is envisaged. ARM Ferrous CEO Andre Joubert said in response to a question by Creamer Media’s Mining Weekly that while the cost differential between Malaysia and South Africa was not that huge as things stood currently, a contract with the Malaysian authorities for a 2.5% yearly increase in electricity cost would make Sakura cheaper and cheaper as the years passed.