Merafe buys chromine ore from Lonmin

[] — South Africa’s Merafe Resources said on Friday it has enough ore sources to mitigate the impact of a government order preventing Lonmin from selling any associated minerals.

Merafe, the world’s largest ferrochrome producer which is operating a joint venture with Xstrata, purchases chromine ore concentrate from Lonmin and has a contract with Lonmin for the construction of a chrome recovery plant.

“The Venture has sufficient flexibility and adequacy of ore sources to mitigate any impact in the short to medium term,” Merafe said in a statement.

“The Venture will review its longer term sourcing strategy only once there is clarity on the outcome of this matter.”

South African government had ordered Lonmin to stop selling nickel, copper and other offshoots of its platinum production due to a dispute over the prospecting rights.