* Co to shut two furnaces between March and May
* Shutdown not to hurt other operations
* Says compensation a net financial benefit
March 1 (Reuters) – Ferrochrome producer International
Ferro Metals Ltd agreed to shut two of its furnaces to
help South African utility Eskom manage tight
electricity supply.
International Ferro did not say how much Eskom was paying as
compensation but said it was a “net financial benefit to the
company.”
The company said it did not expect the shutdowns to
significantly impact other mining and ore beneficiation
operations, and its contracts with customers. No job cuts were
anticipated either.
South Africa has been struggling to meet demand for power as
new power plants meant to plug the shortfall have been delayed.
Supply would remain vulnerable until the first units of Eskom’s
new stations become operational next year.
State-owned Eskom had struck similar agreements with other
ferrochrome producers such as Xstrata, Samancor and
Ruukki.
Sydney, Australia-based International Ferro produces
ferrochrome — the essential ingredient in stainless steel — at
its facilities located in South Africa.
Continued…
