19th Oct 2005 07:00
International Ferro Metals Limited19 October 2005 PRESS RELEASE 19 OCTOBER 2005 IFM COMMENCES CONSTRUCTION OF ITS FERROCHROME MINE AND PLANT INTERNATIONAL FERRO METALS LIMITED ("IFM" or "the Company"), commencedconstruction today of its ferrochrome plant at the Buffelsfontein ferrochromesmelting and mining operation near Mooinooi in the North West province, SouthAfrica. The construction of the entire operation will take around 18 months. It isenvisaged that the project will be at its full production level of 267,400 tpaby the end of 2007. IFMSA has appointed Pyromet Technologies to construct its smelter andbeneficiation plant; Bateman Africa to construct the pelletising and sinteringplant; and SDM Mining Contractors to construct and operate the Company's miningoperations. The total value of these contracts is approximately £95 million. IFM has raised funding through a combination of equity and debt. Equity of £80million was raised via a placing to UK based financial institutions at the timeof the AIM listing and debt of £82 million was raised from Standard Bank,Nedbank and SAAB Supporter. Chief Executive Officer of IFM's South African subsidiary, International FerroMetals (SA) (Pty) Limited, Mr Ronnie Barnard, said: "I am pleased to announcethe appointment of our contractors and that we have today started constructionat the Buffelsfontein project. After a careful selection process, we have chosenhighly reputed contractors that have the necessary experience to construct aplant of this size." ENDS For further information please contact:International Ferro Metals Limited Parkgreen CommunicationsStephen Turner, Managing Director Simon Robinson / Ana RibeiroMob: +44 (0) 7748 245 691 +44 (0) 20 7493 3713 Notes to Editors About International Ferro Metals Limited International Ferro Metals Limited ("IFML") listed on AIM in September 2005 whenit raised £80m with a Placing of 228,571,429 new Ordinary Shares at 35 penceeach. It had already raised debt financing from Standard Bank, Nedbank and SAABSupporter. The proceeds of the fund raising are being used to acquire and finance theconstruction of the Buffelsfontein ferrochrome smelting and mining operationnear Mooinooi in the North West province, South Africa. International Ferro Metals (SA) Pty Limited ("IFMSA") is the wholly ownedsubsidiary of IFML and will operate the Buffelsfontein project. Global Eagle,chaired by Seth Phalatse, is IFMSA's black economic empowerment partner. One of IFML's major shareholders is its Chinese partner, Jiuquan Iron and SteelGroup Company Limited ("JISCO"). JISCO has entered into an off-take agreement tobuy ferrochrome from IFML at market related prices and will market ferrochromein China, Taiwan, Japan and Korea. IFML has also entered into a marketingagreement with New York-listed Commercial Metals Company, which will act as anagent outside JISCO's territories. Ferrochrome Ferrochrome is a common raw material used in stainless steel production. Thisalloy consists of iron and up to 72% chromium. Chromite (kr0'mit) , dark brown to black mineral. It is an iron-chromium oxide, FeCr2 O4,with traces of magnesium and aluminum. Its crystals are octahedral, but rare;it usually occurs as irregular, granular masses in association with igneousrocks, including ophiolites, which are segments of oceanic crust exposed on landby tectonic processes usually associated with plate convergence. Chromitite isan igneous rock composed chiefly of the mineral chromite. The only commercialsource of chromium and its compounds, chromite is used in the manufacture ofrefractory materials. Principal countries producing chromite are South Africa,Zimbabwe, the Philippines, and Turkey. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
IFL.L