[miningmx.com] — MERAFE Resources, South Africa’s largest ferrochrome producer, said first-quarter production rose 3.8%, but said the company would operate at a lower rate during June to August.
Merafe said on Wednesday first quarter attributable production of ferrochrome, used in stainless steel to prevent corrosion, rose to 82,000 tonnes from 79,000 tonnes in the same period last year. The 82,000 tonnes represent 91% of its operating capacity.
The company said ferrochrome producers had achieved an 8% rise in the European benchmark price for the second quarter to $1.35 per pound from the previous three months.
“(This was) offset by the strong rand against the US dollar and overall cost pressures that are at levels well above inflation,” it said.
Merafe, which operates a joint venture with Xstrata, said it would conduct routine maintenance at several of its furnaces which would dent output.
“The (Xstrata-Merafe) venture will operate on average at 65% of operating capacity during the winter months,” the company said, adding that the companies usually choose to conduct maintenance during this period to mitigate the impact of higher-than-average winter electricity tariffs.
