[miningmx.com] — XSTRATA dusted off plans to expand its Lion ferrochrome operations, saying it was confident electricity supply for the expansion could be secured by the UK-listed firm’s ‘own generation’ capability.
The R4.9bn project would add additional production capacity of 360,000 tonnes per year to the smelter once it is commissioned in 2013.
“The use of our energy-efficient Premus technology for the expansion project will expand Xstrata’s cost leadership in a global environment of escalating energy costs,” Xstrata Alloys CEO Peet Nienaber said.
Under the expansion project, a new smelter would be built with a capacity of 360,000 tonnes per year, boosting the group’s overall ferrochrome capacity to over 2.3 million tonnes.
The project is due to reduce overall costs of ferrochrome production by around 6%, Xstrata said.
Xstrata’s joint venture partner, MERAFE RESOURCES LIMITED, has the right to participate in the expansion at a 20.5% level.
“Merafe will be assessing Lion II and an announcement regarding the company’s participation in the project will be made by the end of the year,” it said in a separate statement.
