Posted on 16 Jul 2018
Strong stainless steel market fundamentals are expected to continue supporting metallurgical grade chrome concentrate demand, according to Cyprus-headquartered Tharisa.
This comes after the firm saw an average chrome concentrate price of $193/tonne in the second quarter, down -6.3% on-quarter. Spot prices have, however, since returned to above $200/t, the firm says in a report seen by Kallanish.
The firm maintains its guidance for its fiscal year through September 2018 of 1.4 million tonnes of chrome concentrate production, of which 350,000t will be specialty chrome concentrates. The latter are sold to the chemical and foundry industries at a premium over the ferrochrome industry. The firm plans to raise output to 2mt in 2020.
Tharisa, whose mines and beneficiation plants are located in South Africa, reported a 2.6% on-quarter increase in chrome concentrate production in the June quarter to a quarterly record 376,300t. Speciality chrome concentrates comprised 25.3% of output.
Chrome production in the nine months through June rose 14% on-year to 1.11mt, of which 24.2% was speciality chrome.
Earlier this year Tharisa bought a 90% stake in Salene Chrome Zimbabwe. The firm says it is making good progress on obtaining regulatory approvals, following which the planned exploration programmes in Zimbabwe will commence. This is the firm’s first asset outside South Africa, thereby diversifying revenue streams.
