[miningmx.com] – FERROCHROME producer International Ferro Metals Ltd
agreed to shut two of its furnaces to help South African utility Eskom manage tight
electricity supply.
International Ferro did not say how much Eskom was paying as compensation but said
it was a “net financial benefit to the company.”
The company said it did not expect the shutdowns to significantly impact other mining
and ore beneficiation operations, and its contracts with customers. No job cuts were
anticipated either.
South Africa has been struggling to meet demand for power as new power plants
meant to plug the shortfall have been delayed. Supply would remain vulnerable until
the first units of Eskom’s new stations become operational next year.
State-owned Eskom had struck similar agreements with other ferrochrome producers
such as Xstrata, Samancor and Ruukki.
Sydney, Australia-based International Ferro produces ferrochrome – the essential
ingredient in stainless steel – at its facilities located in South Africa.
International Ferro said it would switch out the first furnace in March-May and the
second in April-May.
The company had the option to switch the first furnace back in on May 1 if it intimated
Eskom by March 31.
