International Ferro starts to rebuild

With both furnaces operating at full capacity for most of the six months to 31 December 2009, International Ferro Metals increased production volumes of ferrochrome by 35 per cent over the preceding six months. Lower ferrochrome prices and a stronger South African rand resulted in an increased pre-tax loss of R145m (£12m) against R27m a year ago. Production remains limited by South Africa's power supply problems, but the company's own electricity generation plant is on schedule and on budget for start-up in the second half of 2010. Management expects to have placed half the company's production under long-term sales contracts by the middle of 2010. Mining operations resumed in late 2009 and increased at the beginning of this year.