TEX reported that Merafe Resources Limited, a partner in Xstrata Merafe Chrome Venture of South Africa, has planned to implement as usual the periodical maintenance of such facilities as electric furnaces for production of ferrochrome during winter season (June 2011 to August 2011 period) in South Africa.

Therefore, Merafe said last week that the operation rate to produce ferrochrome in winter time of this year in South Africa is anticipated to be reduced to 65%.

The output of charge chrome in January to March quarter of 2011 increased by 3.8% from that in the preceding quarter and its operation rate achieved 91% as a favorable record. Merafe Xstrata Chrome Venture produced 316,000 tonnes of charge chrome in January to March quarter of 2011 and according to the ratio of capital investment, Merafe received 82,000 tonnes of charge chrome, which increased by 3.8% compared to that 79,000 tonnes in the same quarter of 2010.

However, in order to avoid a raise of production cost caused by high fees of electric power to be applied by Eskom national electric power corporation of South Africa for winter season, the production of charge chrome in South Africa during June to August has to be reduced.

(Sourced from TEX Report Limited)