Merafe, which holds 20.5% of the Glencore-Merafe Chrome Venture in SA, derives all its revenue from the partnership
Merafe Resources, an empowerment partner in a chrome joint venture with Glencore, returned to profitability in the six months to end-June, supported by growth in stainless-steel demand in China and Indonesia in particular.
“An upswing in ferrochrome demand contributed to increased volumes sold and higher CIF [cost, insurance and fright] prices realised, which were to some extent offset by a stronger average rand exchange rate,” CEO Zanele Matlala said in a statement on Friday “Despite the Lydenburg smelter being on care and maintenance, production volumes increased significantly due to current production being less affected by the Covid-19 restrictions coupled with improved plant efficiencies achieved at our smelters.”
Most chrome is converted into ferrochrome, the raw material used to produce stainless steel. And China is the largest consumer of ferrochrome.Group net was profit was R576.3m in the six months to end-June, swinging from the loss of R961.1m in the same period a year ago, the company said in a statement on Monday.Ferrochrome revenue surged 61% to R3.
Chrome ore revenue was up 55% to R517m as a result of higher chrome prices as well a 51% increase in sales volumes to 208,000 tonnes.
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