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| Structure To Decrease Fe-Cr Production In South Africa Is Expanding, With Same By Assmang |
| = ARM Announced On End Last Week To Suspend Operations Of Two Electric Furnaces |
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The arrangement to decrease production of ferro-chrome in South Africa is enlarging. Following the decision by Samancor Chrome which decreases their production of charge chrome in October - December quarter of 2008 by 70,000 tons, ARM (African Rainbow Minerals) announced on the 24th of October that the Company has decided to suspend operations of two electric furnaces installed at the Machadodorp Plant of Assmang in South Africa for production of charge chrome. Assmang is an affiliated company of ARM. Assmang has suspended to operate these two electric furnaces from the 25th of October and ARM said that the resumption of furnaces is subject to a recovery of demand for ferro-chrome. ARM also said that the operation at Dwarsrivier Mine of Assmang to mine chrome ore has been maintained by having taken an attitude to watch carefully about a further movement of demand for ferro-chrome. On the other hand, African Rainbow Minerals has been operating Nikomati Mine in South Africa to produce low grade chrome ore as a 50 / 50 joint venture with Norilsk Nickel of Russia and announced on the 24th of October that Nikomati Mine is scheduled to decrease production of low grade chrome ore and to reduce its ore sales. Low grade chrome ore produced by Nikomati Mine is generated as by-product (overburden ore) in the course of mining nickel ore and was so far exported for China on a favorable tone. For a reference, ARM and Assore have acquired 50% each of the shares of Assmang for a joint operation. Top executive of ARM said that the fundamentals of chrome demand have been still maintained on a firm tone and the project to expand further the capacity for production of ferro-chrome on a long run will be not influenced by this suspension in operations of electric furnaces as decided in this time. |
| last modified : Fri 31 Oct, 2008 [10:23] |
