| Thu 11 Feb 2010, 15:15 | | ARI - African Rainbow Minerals - Assmang announces conversion of a furnace at |
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ARI
ARIM
ARI - African Rainbow Minerals - Assmang announces conversion of a furnace at
Machadodorp works
African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI
ISIN: ZAE000054045
("ARM" or the "Company")
ASSMANG ANNOUNCES CONVERSION OF A FURNACE AT MACHADODORP WORKS
South African mining group, Assmang Limited ("Assmang"), today announced its
decision to convert the No.5 furnace at Machadodorp Works from ferrochrome
production to high carbon ferromanganese production.
All relevant regulatory requirements for the conversion are in the process of
being met, and it is anticipated that the No.5 Furnace will be able to produce
high carbon ferromanganese by mid-2010, at a level of about 4 000 tons per
month.
Assmang needs to meet elevated demand for its high carbon ferromanganese and
there is no excess capacity at the Cato Ridge Works to meet that requirement
at this stage.
This decision still allows Assmang to meet its contractual commitments for the
production of ferrochrome by the continued operation of its three chrome
furnaces, whilst optimising overall alloy production by the additional
production of ferromanganese. The No.5 Furnace at the Machadodorp Works is
already undergoing a major rebuild, which will facilitate its conversion for
the production of ferromanganese.
Difficult global economic conditions in the past two years have resulted in a
reduced demand for ferrochrome. As a result, Assmang ceased operating some of
its furnaces and retrenched staff at the Machadodorp Works during 2009. The
decision to convert the furnace will, to some extent, offset these
retrenchments made last year.
A company spokesperson said, "The Machadodorp Works will have sufficient
capacity to fulfill existing ferrochrome contractual obligations. Assmang
remains focused on the chrome business and is in the process of expanding
chrome ore production capacity at the Dwarsrivier Mine. There are no plans to
convert any other furnaces and the company is carrying out feasibility studies
on expanding ferrochrome and ferromanganese capacity. Assmang keeps the
ferrochrome and ferromanganese markets under constant review and will continue
to respond to changing market and operational requirements as necessary."
Assmang is jointly controlled by ARM (50%) and Assore Limited (50%) and
consist of three divisions: iron ore, manganese and chrome.
ENDS
For more information please contact:
Jan Steenkamp Alistair McAdam
Chief Executive: ARM Ferrous Senior Sales Manager: Chrome
Tel: +27 (0) 11 779 1106 Tel: +27 (0) 11 770 6885
jan.steenkamp@arm.co.za alistairmcadam@assore.com
Johannesburg,
11 February 2010
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 11/02/2010 15:15:01 Produced by the JSE SENS Department.
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