28th May 2014 10:05
LONDON (Alliance News) - International Ferro Metals Ltd Wednesday said that it has signed a drilling deal with mining company Chrometco Ltd to conduct exploratory drilling of LG6 chrome ore at Chrometco's Rooderand Mine in South Africa.
International Ferro Metals, which produces ferrochrome, an essential ingredient in stainless steel, said that once the drilling is successfully completed, it will be entitled to mine up to 200,000 tonnes of chrome ore over a 12 month period for a fee per tonne payable to Chrometco.
"This agreement is in line with International Ferro Metals stated strategy to obtain higher-grade feed stock for our furnaces and allow for more flexibility and cost effectiveness in our operations," the company said in a statement.
Shares in the company were trading 2.4% higher Wednesday morning, at 9.50 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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