South African Chrome And Alloys Limited - Progress
project
South African Chrome And Alloys Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/003452/06)
ISIN: ZAE000022943
SHARE CODE: SCE
("SA Chrome" or "the company")
Progress report on the ferrochrome project
Status of ferrochrome project
SA Chrome is pleased to announce that the ferrochrome project is within its
R700 million budget and that the delivery of ferrochrome to customers during
the third and fourth quarters of 2002 will be in line with original
forecasts.
Cold commissioning has commenced and the first furnace will be hot-
commissioned at the end of May 2002, two weeks later than was anticipated in
the original 58-week project schedule. The construction of the second
furnace is on schedule and will be hot-commissioned towards the end of June
2002.
Construction of the pelletising and sintering plant, key to the successful
ramp-up of production, is one month ahead of schedule and the plant will be
hot-commissioned during July 2002. This plant will provide a superior
quality of feed material earlier than was originally anticipated. This is
expected to fully compensate for any production losses arising from the two
week delay in the commissioning of the first furnace.
Chromite reserves
The Royal Bafokeng Nation ("the RBN"), which has a 34,9% shareholding in SA
Chrome, has completed a drilling program on its chromite reserves. SA Chrome
has agreed to enter into discussions with the RBN with a view to acquiring
these reserves to improve further SA Chrome's cost effectiveness and to
allow for potential future expansion.
Johannesburg
8 May 2002
Sponsor
Rand Merchant Bank Corporate Finance
A division of FirstRand Bank Limited
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