[miningmx.com] — THE chrome venture between Xstrata and Merafe Resources would temporarily shut down five ferrochrome furnances to assist Eskom with power supply constraints.
Xstrata said on Friday the salient features of the agreement entailed that the venture would shut five of its furnaces until May 31, while Eskom would in return buy-back the energy not consumed by the furnaces.
“The ferrochrome production loss is estimated to be 100,000 tonnes but will not impact on the contractual supply of ferrochrome to the Venture’s customers in the second quarter,” read Xstrata’s statement.
Four of the temporary furnace closures are located at the Rustenburg smelter and one furnace at the nearby Wonderkop smelter. The furnaces will undergo maintenance during the temporary shutdown.
Xstrata said the Rustenburg smelter’s energy efficiency is expected to improve when a new sintering and pelletising plant called Tswelopelle, currently under construction, becomes operational in the second half of 2012.
“The Xstrata-Merafe Chrome Venture does not expect any job losses during the temporary closure of the furnaces as the terms of the agreement have a positive net economic benefit for both the Venture and Eskom,” read the statement.
