18 Jan 2011 15:10
18 January 2011
International Ferro Metals Limited
("IFL" or the "Company")
Operational Update
In advance of its Interim Management Statement and Production Report ("IMS"), due to be released on 25 January 2011, International Ferro Metals provides the following update to the market.
As stated in our results for the year to 30 June 2010, ferrochrome production was below maximum capacity in the last six months of that financial year due to furnace roof leaks and ore input inconsistency. Following repair work to the roofs of both furnaces in June and August 2010, both furnaces were shut again in November for 5 days to finalise our replacement programme and ferrochrome production for the period from October to December 2010 continued below nameplate capacity, at 47,054 tonnes.
In order to improve performance the Company is currently studying various engineering and design options relating to the positioning of the feed chutes and off-gas outlets, and the re-design of the off-gas scrubbers that clean the gas. Optimisation plans are being reviewed and the Company will provide further updates at the appropriate time.
During the commissioning of the co-generation plant, it became apparent that hydrogen levels in the off take gases feeding the Company's co-generation plant are higher than anticipated due to changes being affected since the co-generation engine specification. These relate to water seals rather than sand seals being used at the scrubber system and different reductant being utilised in the furnaces. Different solutions are being examined and at this stage the costs and timescale are not known.
Finally, construction of the Chrome Tailings Retreatment Plant at Anglo Platinum by Anglo Platinum is running behind schedule. IFL expects that the first feed of chrome concentrate will be received in December 2011.
A further update to the market will be provided in the Company's IMS on January 25th 2011.
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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.
Forward Looking Statements
This announcement contains certain forward looking statements which by nature, contain risk and uncertainty because they relate to future events and depend on circumstances that occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements.
For more 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 Micallef-Eynaud
Tel: +44 (0) 20 7404 5959
Numis Securities Limited
John Harrison / James Black
Tel: +44 (0) 20 7260 1000