31 Mar 2009 07:00
31 March 2009
International Ferro Metals Limited
("IFL" or the "Company")
Single furnace to restart for three months, proposed job losses, pay cuts
International Ferro Metals Limited (LSE: IFL), the integrated ferrochrome producer, today announces that it has decided to convert its raw material inventory, comprising mainly chrome ore and coke, to finished product in order to monetise those inventories and generate a contribution towards fixed overheads. To convert the inventory, the Company will restart one of its two ferrochrome furnaces in mid April 2009 for a period of approximately three months. This decision takes into account the steady reduction of finished stock levels as well as sales commitments over the next three months, despite the continuing weak ferrochrome market. Following this period IFL will reassess the state of the ferrochrome market which would need to improve from current levels to warrant a continuation of production.
Further to the difficult economic environment, IFL has advised its employees and representative union that it has commenced consultation regarding a proposal to reduce the number of people employed by the Company to a level that will be sufficient to operate the single ferrochrome furnace. It is estimated that approximately 135 employees of IFL may be affected. IFL is committed to constructively engaging with its representative union, the National Union of Mineworkers ("NUM"), and the Employee Representative Council ("Council"), in a process to try to mitigate job losses. As set out by the South African Labour Relations Act, a section 189 notice has been forwarded to the respective offices of the NUM and the Council.
In addition to the measures taken above, IFL announces that all senior employees, including all board members, will be taking a 10 percent cut in salary until further notice.
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
Patrick Handley / Carole Cable
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.