RE: CV19 ores/alloys affect4 Apr 2020 08:10
Samancor produces about 3 million tonnes per year of chrome ore, according to its website and it has capacity for over 2 million tpy of ferro-chrome production following a series of acquisitions of smaller rivals in recent years. It announced in January plans to reduce annual chrome ore production by 29% and ferro-chrome production by 20% amid poor market conditions.
South Africa's largest manganese miner declares force majeure
Miner Tshipi e Ntle declared force majeure on manganese shipments on Thursday. Its owner, Jupiter Mines, also confirmed on Friday that operations and exports have been suspended for the period of the lockdown. Tshipi sold 3.5 million tonnes of manganese ore in its 2019 full financial year and become the country's largest miner by export volume in 2017.
Tharisa declares force majeure
Chrome and platinum producer Tharisa declared force majeure on contracted chrome concentrate sales agreements on Thursday. The miner had already confirmed on Tuesday it would cease mining and place its operation on care and maintenance. Tharisa recorded chrome concentrate production of 342,500 tonnes for the three months to December 31, 2019, including 81,500 tonnes of specialty grade chrome concentrate production.
Transnet closes bulk terminal to minerals
South African state transport operator Transnet closed bulk terminals to minerals shipments on Thursday, after announcing it would do so on Tuesday. Essential commodities including grains, soya bean meal, fertilizer and wood chips are exempt from the restrictions, Transnet said.
Shutdown indirectly affects security of cobalt raw materials supply
As much as 70% of the world’s cobalt supply comes from the Democratic Republic of Congo, and much of that reaches South Africa for shipment out of Durban. The lockdown is forcing cobalt raw materials suppliers to either look at alternative ports with a connection to the DRC, or sit it out in the hope the lockdown is short-lived. Ahead of its implementation, there was already concern over the status of March and April shipments, with sellers prioritizing long-term obligations over additional spot inquiry.
“Durban has been cut to a skeleton crew, so there are personnel constraints that means you’ll be competing for discharging berths and loading capabilities, which have been cut down. Exports are competing with essential [medical] imports, and for warehousing time, so even if you can get a shipment, you might get bumped off,” one supplier source said.
Glencore puts its vanadium operations on care and maintenance
Glencore announced on Wednesday it was placing its vanadium operation in South Africa on care and maintenance in response to the lockdown. Glencore operates Rhovan, an open-cast mine and smelter complex located in Brits, which mainly produces ferro-vanadium and vanadium pentoxide.
In 2019, Glencore produced 20.2 million lb of vanadium pentoxide from its own sources.
Glencore puts its chrome operation on care and maintenance