Merafe Resources posts decline in ferrochrome production - CNBC Africa

Merafe Resources posts decline in ferrochrome production

Mining

by Trust Matsilele 0

Merafe's attributable ferrochrome production was down 14 per cent. PHOTO: Chemistry Learner

The production loss was as a result of the Glencore-Merafe Chrome Venture, an operation that was formed in July 2004 after Merafe and Glencore South Africa pooled their chrome operations to create the largest ferrochrome producer in the world.

(READ MORE: Xstrata-Merafe venture boosts mining company’s revenue growth)

[DATA MRF:Merafe Resources]' report for the third quarter of 2014 also stated that the reduced production was a result of maintenance.

“This lower production was due to planned maintenance taking place during the high electricity tariff winter months of July and August, as opposed to [the] prior year where maintenance was performed in the first half of the year, due to the Eskom buy back agreements,” Merafe said.

The group indicated that the number of injuries recorded during the period under review surged.

“The venture’s total recordable injury frequency rate increased to 4.30 due to five additional injuries in the first nine months of 2014, compared to the 2013 corresponding period,” it said.

“The venture continues to make every effort to ensure the highest standards of safety are in place at all its operations.”

(READ MORE: Merafe EPS to increase 600% due to ferrochrome production boost)

The Glencore-Merafe Chrome Venture’s wage negotiations were successfully concluded at its eastern mines, eastern smelters and western smelters.

The group said an agreement could not be reached with the western mining employees and union representatives and has seen the affected employees embark on industrial action.

Despite the fact that the western mines are not operating as a result of the protected strike action, this has no impact on current ferrochrome production or sales obligations.

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