Mr Jeff McLaughlan marketing director of Xstrata Alloys, while speaking at the ICDA annual meeting in Paris, said that the power crisis in South Africa will get worse before it gets better.

Mr McLaughlan has warned that 2012 will be the year in which the market will see power in critically short supply. The power shortage has cast doubts on expanding ferrochromium capacity. He added that Xstrata is well placed to deal with the power shortage as the technology at its Lion project is extremely energy efficient.

He warned that producers in South Africa should brace themselves for sharp increases in power costs, which could double by 2012.