Xstrata Alloys, a part of Swiss mining group Xstrata Plc, and its South African JV partner Merafe Resources have announced the temporary suspension of six furnaces, representing 500,000 mt of annual ferrochrome production - equal to approximately 29 percent of the Xstrata-Merafe Chrome Venture's total available capacity.
The three furnaces at the Rustenburg plant, two at the Lydenburg plant, and one at the Wonderkop plant will remain suspended until further notice and will impact ferrochrome production of 80,000 mt for 2008.
Commenting on the production cut, Xstrata Alloys CEO Peet Nienaber stated, "As the global market leader in ferrochrome, Xstrata and Merafe are acting responsibly and decisively to cut back production during a period of short-term demand weakness. Today's announcement underlines the Xstrata-Merafe Chrome Venture's operational flexibility, which enables us to scale back production and optimize unit costs, while redeploying employees within the organization."