MRF - Merafe Resources Limited - Further Furnace Closures
MRF
MRF
MRF - Merafe Resources Limited - Further Furnace Closures
MERAFE RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/003452/06
Share Code: MRF
ISIN: ZAE000060000
("Merafe")
Further furnace closures
On 10 November 2008, the Xstrata-Merafe Chrome Venture (the "Venture") announced
the temporary suspension of six ferrochrome furnaces, representing 500,000
tonnes of annual ferrochrome production capacity. The Venture reviews market
conditions closely on an ongoing basis and has decided to implement further
reductions in ferrochrome production to respond to short term weakness in
demand. A further five furnaces have now been suspended, representing
approximately 406,000 tonnes of annual ferrochrome production capacity and
reducing 2008 ferrochrome production by a further 50,000 tonnes over and above
the 80 000 tonnes already announced. The total suspended ferrochrome production
capacity represents 906,000 tonnes or 52% of annual operating capacity.
A total of one furnace at Boshoek, four furnaces at Rustenburg, three furnaces
at Lydenburg and three furnaces at Wonderkop will remain suspended until market
conditions improve. The Venture will continue to monitor prevailing market
conditions closely. No lay-offs are anticipated for permanent employees at the
furnaces, enabling the Venture to return to capacity quickly and efficiently
when market conditions allow.
Sandton
1 December 2008
Sponsor
Deutsche Securities SA (Pty) Ltd
Date: 01/12/2008 09:00:03 Produced by the JSE SENS Department.
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