| Fri 30 Mar 2012, 13:39 | | MRF - Merafe Resources Limited - Amendment to the Eskom buy-back agreement: |
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MRF
MRF
MRF - Merafe Resources Limited - Amendment to the Eskom buy-back agreement:
temporary closure of an additional two furnaces
MERAFE RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1987/003452/06
Share Code: MRF
ISIN: ZAE000060000
Amendment to the Eskom buy-back agreement: temporary closure of an additional
two furnaces
Further to the announcement dated 17 February 2012, shareholders are advised
that the Xstrata-Merafe Chrome Venture ("the Venture") has amended the agreement
with Eskom to assist with the power utility`s power supply requirements. The key
features of the amendments are:
* The Venture will temporarily close an additional two of its furnaces until
31 May 2012;
* In return, Eskom will buy-back the energy not consumed by these two
additional furnaces until 31 May 2012;
* The additional two temporary furnace closures, which will be effective from
1 April 2012 until 31 May 2012, will have a net positive economic impact
for both the Venture and Eskom and will not result in job losses at these
two furnaces.
The additional two temporary furnace closures will be at the Venture`s Wonderkop
smelter and Lydenburg smelter. Therefore, as a result of the power buy-back
arrangement with Eskom, inclusive of the above amendments, a total of seven
furnaces will be temporarily closed, four at the Rustenburg smelter, two at the
Wonderkop smelter and one at the Lydenburg smelter.
The total ferrochrome production loss to the Venture as a result of the seven
temporary furnace closures is estimated to be 130,000 tonnes, an additional
30,000 tonnes resulting from the two further temporary furnace closures.
Sandton
30 March 2012
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 30/03/2012 13:39:01 Produced by the JSE SENS Department.
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