IFL.L Regulatory News (IFL)

3 Feb 2006 08:08

International Ferro Metals Limited03 February 2006 3 February 2006 International Ferro Metals Limited ("IFM" or "the Company") Update on Ferrochrome Mine and Plant Construction IFM is well positioned to take advantage of the continuing high demand forferrochrome from the world's stainless steel producers and aims to reach aproduction level of 267,400tpa of ferrochrome by the end of 2007. Below is an update of the current status of the construction of the Company'sferrochrome plant at the Buffelsfontein ferrochrome smelting and miningoperation (near Mooinooi) in the North West Province, South Africa: • Construction of the ferrochrome mine and plant is on schedule for commencement of initial production in April 2007; • Fixed price and fixed time contracts account for approximately 87% of IFM's Capex (up from 68% at time of admission to AIM), thus further reducing the Company's exposure to any potential construction risks; • Mine portal has been established with two declines. The first is 150 metres in length and within the chromite seam and the second decline length is 35 metres; • Smelter furnace foundations are complete and the fabrication of the furnace shells is advanced, with the first furnace shell scheduled to be delivered to site for installation in the last week of February. In addition, the Company's strategic partner, JISCO, a Chinese state owned steelproducer situated in China's Gansu province and a major shareholder in IFM,commissioned its stainless steel production facility in December 2005. Stephen Turner, Managing Director of IFM, commented: "We are delighted toannounce that construction of the Buffelsfontein mine remains on target tocommence production in April 2007. We look forward to providing further updateson the construction of the mine and plant and would like to thank the managementand the people on site for their considerable achievements to date." ENDS For further information please contact: International Ferro Metals Limited Parkgreen CommunicationsStephen Turner, Managing Director Simon Robinson / Ana RibeiroMob: 07748 245 691 Tel: 020 7493 3713 Notes to Editors About International Ferro Metals Limited International Ferro Metals Limited ("IFM") listed on AIM in September 2005 whenit raised £80m with a Placing of 228,571,429 new Ordinary Shares at 35 penceeach. It had already raised debt financing from Standard Bank, Nedbank and SAAB. The proceeds of the fund raising are being used to acquire and finance theconstruction of the Buffelsfontein ferrochrome smelting and mining operationnear Mooinooi in the North West province, South Africa. International Ferro Metals (SA) Pty Limited ("IFMSA") is the wholly ownedsubsidiary of IFM and will operate the Buffelsfontein project. Global Eagle,chaired by Seth Phalatse, is IFMSA's black economic empowerment partner. One of IFM's major shareholders is its Chinese partner, Jiuquan Iron and SteelGroup Company Limited ("JISCO"). JISCO has entered into an off-take agreement tobuy ferrochrome from IFM at market related prices and will market ferrochrome inChina, Taiwan, Japan and Korea. IFM has also entered into a marketing agreementwith New York-listed Commercial Metals Company, which will act as an agentoutside JISCO's territories. Ferrochrome Ferrochrome is a common raw material used in stainless steel production. Thisalloy consists of iron and up to 72% chromium. Chromite The elemental name for chromite is Cr2O3 This information is provided by RNS The company news service from the London Stock Exchange