Reuters reported that production of ferrochrome, used in stainless steel, an industry dented by the downturn, dropped by 18% after weaker market conditions prompted Xstrata to extend maintenance programs during the high electricity tariff winter in South Africa, halving production capacity.

The third quarter benchmark price for ferrochrome was settled at USD 1.20 per pound, 11% lower than the second quarter on weak demand. The fourth quarter benchmark was USD 1.20.

Zinc in concentrate production slipped 2% after lower output at the Antamina mine in Peru, while nickel production increased 15% YoY to 26,738 tonnes, boosted by the ramp up of Falcondo ferronickel operations in the Dominican Republic.

Xstrata, badly hit in the 2008 financial crisis due to high debt, said its operating and financial performance remained strong, with the its financial position robust and a USD 6.8 billion debt facility undrawn. It added all major growth projects remain on timetable and within budget.

(Sourced from www.reuters.com)