ASR
ASR
ASR - Assore Limited - Announcement
Assore Limited
(Incorporated in the Republic of South Africa)
Registration number: 1950/037394/06
Share code: ASR
ISIN: ZAE000017117
Assmang Limited (which is jointly controlled by African Rainbow Minerals
Limited and Assore Limited) announces possible conversion of further furnaces
at Machadodorp Works.
Assmang Limited (Assmang) announced today that, after the successful
conversion of the No 5 Furnace at its Machadodorp Works from the production of
charge chrome to high carbon ferromanganese, it is evaluating the conversion
of a further two open furnaces (Nos 2 and 3) at the Machadodorp Works for the
production of ferromanganese. As announced previously, it remains the aim of
the company to optimise alloy production across its facilities.
Although most regulatory requirements are in place, there are a number of
engineering and logistical issues that require resolution before this
conversion can be implemented. It is thus anticipated that this conversion
would not take place before mid 2011.
Assmang has not been able to consistently meet the strong market demand for
high carbon ferromanganese from its Cato Ridge Works and from the No 5 Furnace
at the Machadodorp Works. If Assmang proceeds with the proposed conversion, it
is anticipated that it will increase Assmang`s capacity for high carbon
ferromanganese to approximately 400 000 tonnes per annum and make
approximately 100 000 tonnes per annum of additional product available to the
market. In this event, core ferrochrome customers will still be supplied from
the No 1 Furnace at Machadodorp.
With the ongoing uncertainties around the availability of electricity for
future expansion in South Africa, the proposed conversion would free up
sufficient power to allow Assmang to also consider expansion options at its
smelters, and studies in this regard are continuing.
Illovo Boulevard
Johannesburg
10 September 2010
Contact details:
Alastair Stalker
Switchboard: (011) 770 6800
Direct line: (011) 770 6886
E-mail: alastairstalker@assore.com
Sponsor
Standard Bank
Date: 10/09/2010 12:05:03 Produced by the JSE SENS Department.
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