South Africa-based ferrochrome producer Merafe Resources which holds a 20.5 percent share in joint Glencore-Merafe Chrome Venture, has announced its production results for the fourth quarter and for the full year of 2019.
Despite the significant increase in the ferrochrome output by the end of the fourth quarter, Merafe's annual production results in 2019 remained weaker compared to the previous year. In the fourth quarter, the company’s attributable ferrochrome production increased by 75 percent quarter on quarter to 105,000 mt, 6.2 percent lower year on year. In the full year, Merafe produced 371,000 mt of ferrochrome, down 8.8 percent year on year. According to the official statement, this decrease was due to increased electricity curtailments from South African utilities provider Eskom, community unrest, as well as production cutbacks in response to market conditions. The full year production figure represents approximately 77 percent of installed capacity.