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Merafe Q3 ferrochrome production up 71%

24th October 2013

By: Leandi Kolver

Creamer Media Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – JSE-listed ferrochrome producer Merafe Resources on Thursday reported that its third-quarter attributable production from the Glencore-Merafe chrome venture increased by 71% year-on-year, as a result of additional planned production, good performance of the Lion 1 project and the impact of major production improvements at the venture’s Rustenburg plant.

The Glencore-Merafe chrome venture used 94% of its ferrochrome production facilities’ operating capacity during the quarter, a significant increase from the 55% used in the prior comparative period.

Merafe’s ferrochrome sales tonnages increased by 25% year-on-year in the quarter.

Meanwhile, Merafe stated that its Lion 2 project was still on track for hot commissioning at the end of the year, with the overall project remaining on schedule and within budget.

Lion 2 was estimated to be 76% complete as at September 30.

“As we move into the exciting commissioning phase, we are confident about the project’s ability to deliver further efficiencies and cost savings, thereby enhancing the venture’s competitive advantage,” Merafe said.

Further, the company said the benefits of ongoing cost-saving initiatives within the Glencore-Merafe chrome venture, which included placing the Horizon mine on care and maintenance, were already evident.

Overall, Merafe and the chrome venture were also expected to benefit from synergies resulting from the GlencoreXstrata merger.

Meanwhile, wage negotiations relating to all the company’s smelters had been completed, while wage negotiations at the western mines were still ongoing.

“Mining operations at the venture’s eastern mining operations have now returned to normal levels following the unprotected strike, which resulted in dismissals earlier this year,” the company added.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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