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[Ferro-Alloys.com]MERAFE Resources’ full-year ferrochrome production volumes for 2014 were 5 percent higher than the previous year.
In 2014, Merafe increased ferrochrome output to 334 000 tons from 319 000 tons in 2013.
The company achieved 84 percent of operating capacity utilisation, the mining company said in its fourth quarter update on Friday.
Merafe’s ferrochrome production for the fourth quarter from the Glencore Merafe chrome venture was 3 percent higher that the 2013 corresponding period, with production levels averaging 88 percent of operating capacity utilisation.
Fourth quarter 2014 ferrochrome output was 92 000 tons from 89 000 tons in the fourth quarter in 2013.
However, the group’s attributable ferrochrome sales were 18 percent lower in the fourth quarter compared to the corresponding period in 2013.
“This was a result of weaker demand and logistical constraints,” it said.
“Higher ferrochrome production was due to the start-up of Project Lion II which was partly offset by additional planned maintenance on the other furnaces operated by the venture,” the group said.
The company achieved an average price of 118.5 US cents per pound in 2014 up from 116.1c per pound in 2013.
Merafe achieved an average price of 115c per pound in the 2014 fourth quarter up from 112.5c per pound in 2013 fourth quarter.
Merafe had a 20.5 percent stake in the Glencore Merafe chrome venture, the largest ferrochrome producer in the world, from which it primarily generates its revenue and operating income.
Glencore holds the remaining 79.5 percent interest in the venture.
South Africa contributes about 36 percent of the world production of ferrochrome, a key mineral in stainless steel making.
The country has about 70 percent of the world’s chrome ore reserves.
The company said the ramp-up of Project Lion II was on track and was expected to reach full capacity by mid-2015.
Merafe was also pleased to announce that wage agreements were reached with employees of western mines in this reporting period.
The strike involving the National Union of Metalworkers of SA resulted in the mining group’s ferrochrome output for the three months to September declining to 74 000 tons from 85 000 tons a year earlier.
The venture’s total recordable injury frequency rate increased from 3.84 in 2013 to 4.59 in 2014.
This was due to eleven extra injuries.
“Safety remains a key focus area and the venture continues to make every effort to ensure the highest standards of safety are in place at all its operations,” the group said.
Merafe’s shares on the JSE ended down 1c at 93c on Friday.
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- [Editor:sunzhichao]
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