IFL.L Regulatory News (IFL)

1 Jun 2007 08:30

International Ferro Metals Limited01 June 2007 1 June 2007 International Ferro Metals Limited("IFM" or "the Company") Official Opening and Operations Update International Ferro Metals Limited (AIM:IFL) is pleased to announce that theofficial opening of its integrated ferrochrome production facility took place onTuesday 29th May 2007. Ms Edna Molewa, the Premier of the North West Province ofSouth Africa in which the facility is located, together with Mr Sandile Nogxina,the Director General of the Department of Minerals and Energy, and Mr JabulaniSindane, the Director General of the Department of Water Affairs, officiated atthe ceremony attended by over two hundred guests. Premier Molewa noted that the Company is the only ferrochrome producer in SouthAfrica to have exclusively adopted closed furnace technology which ensures theenvironmentally sound status of the plant. This technology, while havingrequired a greater capital investment than traditional open furnaces, willprovide lasting benefits to the environment through reduced pollutant emissionsand greater productivity for the utilisation of South Africa's resources. Premier Molewa congratulated the Company on bringing such a large project intoproduction both ahead of schedule and under its expenditure budget. Thisachievement is a credit to the over 5,000 people who worked on its construction. The facility now operates 24 hours a day, employing over 1,000 people. These1,000 new jobs have already improved the economy and standard of living of manymore residents of the North West Province.Ms Molewa noted the exceptionally low "Lost Time Injury Frequency Rate" of 0.18after 4.2 million man hours worked (against an industry average of 3.05)achieved during the project phase. This is evidence of the Company's management and employees commitment to a safe and a healthy environment for allstakeholders. The South African Minister of Minerals and Energy, Minister Buyelwa Sonjica, in her Budget Speech to the National Assembly on 30th May 2007 referred toInternational Ferro Metals Limited as a BEE compliant company evidencing confidence in the resources sector. Stephen Turner, Managing Director of International Ferro Metals commented "Itwas an honour to have Ms Molewa, the Premier of the North West Province of SouthAfrica attend the IFM opening. All of us at IFM are proud of the productionfacilities and our position at the bottom of the South African production costcurve. The continued shortage of ferrochrome supply has created an ideal marketfor IFM's entry as a producer. The Board of IFM would like to express its thanksto the dedicated and highly motivated management team for this success."Ferrochrome production update Following today's announcement of the official opening of International FerroMetals Limited's (AIM:IFL) integrated ferrochrome production facility, IFM provides the following production and sales update. IFM plans to produce 267,000 tonnes of saleable ferrochrome per annum. Its mine, ore beneficiation plant and two ferrochrome furnaces are able to operate at their design capacities. Howeverthe commissioning of its sintering and pelletising plant later than planned, and a temporary disruption to water supply, has reduced production below maximum capacity. The Company's furnaces are running on both lumpy chromite ore and beneficiated ore and pellets from its own plant. The production rate of ferrochrome continues to increase and it is expected to reach full capacity by July 2007. IFM's expected production costs at steady state full production remain below US$0.40/lb. Production at the integrated ferrochrome facility can be viewed on the Company's web site at www.ifml.com/Project%20Photos.aspx IFM sales update Sales of ferrochrome for the period to 30th June 2007 will exceed the Board's expectations at the time of the Company's admission to AIM in September 2005. The Board had forecast ferrochrome sales to total 15,100 tonnes in the period to 30th June 2007. Sales are now forecast to be 58,000 tonnes for this period. Ferrochrome price update Continued increases in global stainless steel production have further strengthened demand for ferrochrome. The restrictions on the export of chromite ore from India introduced in March 2007 have limited ferrochrome production in China. These factors, together with low chromite and low ferrochrome inventories have resulted in a tight ferrochrome market. Both Metal Bulletin Research and Heinz Parisier Research forecast higher than historical average ferrochrome prices continuing for the next ten years. ENDS For more information contact: International Ferro Metals LimitedStephen Turner, Managing DirectorMob: +61 418 440 844www.ifml.com Brunswick GroupCarole CableTel: 020 7404 5959 Numis Securities LimitedJohn HarrisonTel: 020 7260 1000 Grant Thornton Corporate FinanceFiona OwenTel: 020 7383 5100 Notes to editors: International Ferro Metals is a low cost ferrochrome producer that has recentlycommenced shipments from its integrated chromite mine and ferrochrome processingoperations in South Africa for use in the global stainless steel industry. This information is provided by RNS The company news service from the London Stock Exchange