Johannesburg, South Africa — MININGREVIEW.COM — 19 February 2010 – International Ferro Metals (IFM) “’ the London-listed ferrochrome producer with operations in South Africa “’ says it plans to construct a R150 million chrome re-treatment plant to treat tailings arising from Anglo Platinum’s Rustenburg Platinum Mines UG2 concentrator.
In a statement issued here the company said this followed an agreement between IFM and the Anglo Platinum subsidiary. “The primary objective of the plant will be to extract chromite from the tailings,” it added. It will be constructed and commissioned by a contractor owned and operated by Rustenburg Platinum Mines.
IFM will be entitled to 15 000 tonnes of chromite per month at no cost other than that of transporting the concentrate to its facilities at Buffelsfontein, which is about 50km from the plant. “The 15 000 tpm represents almost 30% of the company’s current concentrate requirements, and the effective cost of the concentrate will be significantly below the company’s in-house mining cost,” IFM said.
The contract will be for ten years from commencement of the project and IFM is entitled to 15 000 tpm from the date of commissioning of the plant.
Construction on the plant is expected to commence in June 2010, and commissioning is expected to follow 12 months later. IFM said the project would be funded using existing cash facilities.
“This is a very exciting and innovative deal for IFM and we are very pleased to be partnering with Anglo Platinum, the world’s leading primary producer of platinum group metals. This new source of chromite supply for our two furnaces will reduce our input cost and will enable us to better leverage the improving ferrochrome market conditions,” said IFM chief executive officer David Kovarsky.