17 Feb 2010 07:00
17 February 2010
International Ferro Metals Limited
("IFL" or the "Company")
Agreement with Anglo Platinum for chromite supply derived from UG2
The Company has entered into an agreement with Rustenburg Platinum Mines Limited ("RPM"), a subsidiary of Anglo Platinum Limited, whereby IFL will pay approximately ZAR150m for the construction of a chrome re-treatment plant ("CRP") to treat the tailings arising from RPM's UG2 concentrator situated at their Waterval section. The CRP's primary objective will be to extract chromite from the tailings. The CRP will be constructed and commissioned by an EPCM Contractor and owned, maintained and operated by RPM.
IFL will be entitled to 15,000 tonnes of chromite per month (tpm) at no cost other than the cost of transporting the concentrate to its facilities at Buffelsfontein, which is about 50km from the CRP. The 15,000tpm 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.
The contract endures for ten years from commencement of the project and IFL is entitled to 15,000tpm from the date of commissioning of the CRP. It is estimated that IFL will therefore receive concentrate for a period of nine years. Construction on the CRP is expected to commence in June 2010 and commissioning is expected to follow 12 months later. The Company will fund the project using existing cash facilities.
David Kovarsky, Chief Executive Officer of IFL commented:
"This is a very exciting and innovative deal for International Ferro Metals 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. This agreement and the start up of the co-gen plant expected in the second half of the calendar year illustrates the management's focus on lowering costs and increasing production capacity."
ENDS
For further information please visit www.ifml.com or contact:
International Ferro Metals Limited
David Kovarsky, Chief Executive Officer
Mob: +27 82 650 1192
Brunswick Group
Carole Cable / Fiona Mulcahy
Tel: +44 (0) 20 7404 5959
Numis Securities Limited
John Harrison / Stuart Skinner
Tel: +44 (0) 20 7260 1000
About International Ferro Metals:
International Ferro Metals produces ferrochrome, the essential ingredient in stainless steel, from its integrated chromite mine and ferrochrome processing operations in South Africa. International Ferro Metals is listed on the London Stock Exchange under the symbol IFL.