Merafe: All FeCr smelters, except for Lydenburg, are operating
In its production report for the nine months ended 30 September 2020, Merafe Resources say its attributable ferrochrome production from the Glencore Merafe Chrome Venture in the third quarter ended 30 September 2020 is 48 000 tonnes, resulting in an overall 37% decrease in production for the nine months ended 30 September 2020 year on year.
As reported by Merafe on 27 July 2020, the decrease is as a result of production cutbacks in response to COVID-19, market conditions and electricity curtailments to a limited extent.
All smelters, except for Lydenburg which is on care and maintenance, are currently operating, with Boshoek, Wonderkop and Rustenburg having resumed production in September 2020.
This year’s nine months attributable ferrochrome production, ended on 30 September 2020, was 168 000 tonnes, compared to 266 000 tonnes for the same period of last year.
The main focus of Merafe’s business is on the 20.5% participation of its wholly owned subsidiary, Merafe Ferrochrome and Mining Proprietary Limited, in the earnings before interest, tax depreciation and amortisation (EBITDA) of the Glencore-Merafe Chrome Venture, in which Glencore has a 79.5% participation.
Merafe and Glencore Operations South Africa formed the Venture in July 2004 when they pooled their chrome operations to create the largest ferrochrome producer in the world.
