IFM aims to double chromite production capacity

Feb. 24, 2010
South Africa-focused International Ferro Metals (IFM) said that market had "greatly improved" over the last three months, reflecting increased demand, not only from China, but also from the US and Europe. IFM CEO David Kovarsky said in a conference call that the improving global demand, and the anticipated increased power supply from South African State-owned utility Eskom's Medupi power station in 2012, had encouraged IFM to begin a prefeasibility study (PFS) to significantly expand operations. The PFS would be completed by January 2011. Kovarsky said that the company planned to increase its production capacity from the current 267,000t/y to 665,000t/y over the next four to five years. "We cannot underestimate the task of more than doubling up our production, but IFM believes that it is achievable given the increase in world demand, and the tight production capacity in South Africa, owing to the current Eskom constraint." IFM would supply the additional chrome ore from its own mines. Kovarsky noted that the company's planned Skychrome mine would be developed by then. "The company expects short-term chrome demand to remain positive, with possible volatility along the way. However, in the long term, we are confident that demand for South African chrome demand will remain strong, as developing economies continue to urbanise and industrialise and as they look for diversity of supply," Kovarsky stated.