Ferrochrome production was 20% lower in the third quarter compared to the same period in 2008, as a result of the ongoing suspension of production capacity in response to market conditions. Production was progressively increased to 60% of total capacity in early July and to approximately 85% by the end of the third quarter in response to improved demand.

During the third quarter, the Rand continued to strengthen against the US dollar and is currently trading near to a 14 month high. The strong Rand has resulted in margins remaining under pressure and subsequently ferrochrome producers have achieved a 16% increase in pricing. The European benchmark ferrochrome price was settled at USD 1.03 per pound for the fourth quarter, up from USD 0.89 in the previous quarter.

Production was suspended at Rhovan, Xstrata’s integrated vanadium operation, during the third quarter for extended maintenance. The operation returned to full production on October 17th 2009.

PGM volumes were 5% higher than the same period last year, as the Mototolo JV is now producing at a steady state of 209,500ounces per annum (100% basis). The Eland operation has commenced the development of an underground mine, which will replace its opencast tonnage and progressively increase current PGM production levels to up to 300,000 platinum ounces per annum from 2014.