One of the biggest exporters of chrome ore in Turkey, Cihan Mining and Metal Co., has reached an agreement with Russian holding Rosspetssplav for the supply of chrome ore to its ferroalloy subsidiary Kluchevsky Ferroalloy Plant (KZF) at a new price, which is 2.5 times lower than the prevailing price in September. The deliveries are scheduled to start in December.
The agreement will allow KZF to increase its ferrochrome production in December and to reduce ferrochrome prices by 70 percent compared with September levels, making the plant's products again attractive to Russian and overseas consumers.
Moreover, the new sources of ore will allow Rosspetssplav to restart production at the chromium oxide plant, Russian Chrome 1915, which was shut down in October this year.
The agreement between Rosspetssplav and Cihan Mining and Metal Co. for regular deliveries of chrome ore in 2009 guarantees the realization of the holding's production program in the new economic conditions, while the Turkish supplier could replace Kazakhstan as the main source of raw material.
Currently, KZF plans to keep its output nearly at the levels achieved in October, while the exact production plan will become clear in December.
In October Rosspetssplav's KZF increased its production of low carbon ferrochrome to 714.8 mt, of which 565 mt were exported. In November the company was forced to reduce its output of chrome, and to adjust its production plans on a weekly basis depending on demand.