All data is delayed
See More

Eskom helped by more furnace shutdowns

Mar 01 2012 10:32
FERROCHROME producer International Ferro Metals has agreed to shut two of its furnaces to help power 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 will 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. International Ferro said it would switch out the first furnace in March-May and the second in April-May.

The company had the option to switch the first furnace back on May 1.
samancor  |  xstrata  |  electricity blackouts  |  eskom


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills..

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote