What's Happening?
Merafe Resources, a company listed on the Johannesburg Stock Exchange, has reported a significant decrease in its ferrochrome production. For the nine months ending September 30, the company's attributable ferrochrome production from its joint venture
with Glencore was 112,000 tonnes, marking a 51% decline from the 230,000 tonnes produced in the same period the previous year. This reduction is primarily attributed to the suspension of production at the venture's smelters due to adverse market conditions. Additionally, the company's chrome ore production saw a slight decrease, while its platinum group metals concentrate production increased by 6% year-on-year.
Why It's Important?
The decline in ferrochrome production highlights the challenges faced by the mining industry, particularly in the context of fluctuating market conditions. Ferrochrome is a critical component in the production of stainless steel, and a decrease in its production can have ripple effects on the steel industry and related sectors. The reduction in output may impact Merafe's financial performance and could influence market prices for ferrochrome. The increase in platinum group metals production, however, may provide some financial relief and diversification for the company.
