Afarak Group Plc, formerly Ruukki Group Oyj, is a Finland-based company active in the steel sector. The Company’s business comprises two production divisions, FerroAlloys and Speciality Alloys, and a sales and marketing operation, RSC Limited. The FerroAlloys business consists of the Stellite mine, the alloy processing plant Mogale and the Mecklemburg development project in South Africa and the Waylox mine development project in Zimbabwe. The business produces chrome ore, Charge Chrome, Silico Manganese and Stainless Steel Alloy and exports chrome ore directly to global markets, particularly to China. The Spieciality Alloys business consists of the TMS mining and beneficiation operation in Turkey and the EWW, chromite concentrate processing plant in Germany. TMS supplies EWW with chromite concentrate which is used in Specialised Low Carbon and Ultralow Carbon Ferrochrome. Surplus chrome ore is exported from TMS mainly to China. The Company operates a number of subsidiaries worldwide.

Business 

FERROALLOYS

Afarak’s FerroAlloys business is located in southern Africa and consists of the Stellite chrome mine, the Mecklenburg mine and the Mogale Alloys processing plant in South Africa and the Waylox mine development project in Zimbabwe.

The Stellite Mine – South Africa

The Stellite mine was acquired in late 2010, as part of the Chromex acquisition and will be the primary ore supply to Mogale Alloys, thereby integrating the FerroAlloys business. Excess lumpy chrome ore mined at Stellite is exported directly to China.

Stellite is located on the western limb of the Bushveld Complex in South Africa, where 70% of the world’s chrome resources are located and 40% of chrome production is sourced. The mine has a chromite resource of 32Mt comprising of four seams, namely the LG6, MG1, MG2 and MG4. All four seams outcrop on the property. It has a New Order Mining Right and BEE partners own 19% of the operation.

The mine commenced operations in July 2008. The open cast mining is outsourced to a contractor. The beneficiation plant comprises of a dense media separation (DMS) plant and a spirals circuit, which has a run-of-mine (ROM) feed capacity of 40,000 tonne per month.

The mine produces a 42% and 44% metallurgical grade chrome concentrate which is transported by road to Mogale and a 38% lumpy chrome ore, which is exported to China.

The Mogale Alloys – Processing Plant

Afarak acquired Mogale in 2009, providing it with access to the bulk minerals processing sector in South Africa. The acquisition marked a strategic step forward for the Group by providing access to direct current (DC) furnace technology, which has been in operation at Mogale since 1983 and is considered to be a centre of excellence. DC furnace technology is approximately 20-30% more cost efficient than traditional furnace technology.

Mogale operates four furnaces; two submerged arc furnaces and two DC furnaces, with a total production capacity of 110,000 tonnes per annum. These furnaces are capable of producing four key products: silico manganese, plasma ferrochrome, charge ferrochrome and stainless steel alloy (chromium-iron-nickel alloy).

The Mecklenburg Mine – South Africa

The Mecklenburg Mine is located on the Eastern Limb of the Bushveld Complex. The LG6 and LG6A chromite reefs, which outcrop at surface at Mecklenburg, comprise approximately 9Mt and 5.7Mt of chromite resources and reserves respectively.

The Waylox Mine Development Project – Zimbabwe

The Waylox Mine Development Project is located on the Great Dyke in Zimbabwe. It is a small, alluvial, high grade chrome deposit.

• [Editor:Yueleilei]