Faced with tighter regulations, Chinese steelmakers are switching from open and semi-closed furnaces to more environmentally friendly plants. That, according to analysts at Investec, has increased the need for a stable supply of high-quality chrome ore.
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Against this backdrop, South African miner Tharisa (THS) has announced a five-year strategic co-operation agreement to supply a subsidiary of Chinese steel giant TISCO with at least 240 kilo tonnes per annum (ktpa) of chrome concentrate at market prices. The deal, which according to chief executive Phoevos Pouroulis “further cements [Tharisa’s] position in the Chinese market”, starts in September.