Merafe reports lower ferrochrome production
By Edward West 1h ago
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CAPE TOWN – MERAFE Resources’ attributable ferrochrome production from the Glencore Merafe Chrome Venture in the fourth quarter and year ended December 31, 2020, fell by about 8 percent and 29 percent, respectively when compared to the quarter and year ended December 31, 2019.
The chrome miner said in its production report yesterday that the decrease was as a result of production cutbacks in response to Covid-19, market conditions and to a limited extent, electricity curtailments.
Currently, Merafe’s main focus is on its 20.5 percent participation of its subsidiary, Merafe Ferrochrome and Mining in the earnings before interest, tax depreciation and amortisation of the Glencore-Merafe Chrome Venture, in which Glencore has a
79.5 percent participation. Merafe and Glencore Operations South Africa formed the venture in July 2004 when they pooled chrome operations to create the largest ferrochrome producer in the world.
Merafe’s directors said yesterday attributable chrome production amounted to 97kt in the quarter to December 31, 2020, compared with 105kt in the same quarter, a year before.
The production for the year to December 31 amounted to 265kt, compared with 371kt the prior year.
Last month Merafe said that the European benchmark ferrochrome price for the first quarter of 2021 had been settled at 117.5 cents per pound, a 3.1 percent increase from the fourth quarter of 2020.
The Glencore-Merafe Chrome Venture operates five ferrochrome smelters. Merafe’s share price fell 2.08 percent by late yesterday afternoon on the JSE to 47c after 55 share trade deals.