Bloomberg reported that Samancor Chrome Limited may shut some of the South African operations, it restarted earlier this year, as costs rise.

Mr Danko Konchar chairman of Samancor said that “Costs have climbed dramatically and electricity charges will gain further. Samancor restarted about three-quarters of its capacity after suspending all output in December on weak demand.”

He said that “Samancor will reconsider its level of production in June, when winter tariffs start. The South African currency’s appreciation is also a concern.”

Eskom Holdings Ltd which supplies about 95% of power in South Africa has asked regulators to allow it to raise tariffs 34% this year following a 27.5% increase last year.

Ferrochrome producers including Xstrata Plc, Hernic and International Ferro Metals Ltd suspended output as prices fell because of a slump in stainless steel demand.

(Sourced from Bloomberg.net)