11th May 2006 08:48
International Ferro Metals Limited11 May 2006 PRESS RELEASE 11th May 2006 International Ferro Metals Limited ("IFM" or "the Company") Update on Ferrochrome Mine and Plant Construction International Ferro Metals (AIM:IFL) announces that the construction of itsSouth African integrated ferrochrome smelting and mining operation isprogressing well and is on schedule to achieve a run rate of 267,400 tonnes peryear of ferrochrome by the end of 2007. Over 1,200 employees and contractors arecurrently on site. This is expected to increase to a total of 2,750 personnelduring August 2006 as the Company's construction program peaks. Followingconstruction total employees and contractors on site are unlikely to exceed 960. Listed below is an update on the Company's construction of the plant andchromite mine. Construction and mine development • The smelter furnace construction is on schedule. Pyromet, the Company's principal contractor, has installed both furnace shells and fabrication of the electrodes is in progress. • The pelletising and sintering plant construction is on schedule, undertaken by Outokumpu and Bateman Engineering, with all equipment fabricated. This equipment will be shipped from Finland in the week commencing 14th May 2006. • Mine development is on schedule, undertaken by SDM Mine Contractors. Two declines at the Company's mine have been constructed, each within chromite seams, and are presently at a distance down dip of 340 metres, with 50 metres of strike development on each side of the declines. • The mine conveyor belt is fully operational. • The mine has so far produced over 22,000 tonnes of run of mine chrome ore. This is being processed by our existing beneficiation plant which is operating 24 hours per day. The Company has sold this beneficiated material to Chinese smelters pending completion of the Company's smelting facility. • Pyromet is constructing an additional ore beneficiation plant and all equipment for this plant and its ball mill is on schedule for delivery. • Electricity supply has been consistent and Eskom, South Africa's major power supply company, is on schedule for delivery of its contracted increase in power facilities. Stephen Turner, Managing Director of IFM, commented: "We are delighted toannounce that construction of the Buffelsfontein mine remains on target tocommence production in April 2007. Construction of the ferro-chrome smelterand development of its integrated chrome ore mine are now 42% complete. Welook forward to providing further updates on the construction and mine expansionand would like to thank our management and contractors for their considerableachievements to date." Issue of options to two non-executive Directors The Company also wishes to announce that options over 500,000 ordinary shareshave been granted at 35p to two non-executive directors as follows: Director No of options granted Total no of options Xiaoping Yang 250,000 250,000 Tian Xia 250,000 250,000 The options are exercisable immediately and expire on 31 October 2008. These two non-executive directors do not own any ordinary shares in the Company. ENDS For further information please contact: International Ferro Metals Limited Parkgreen CommunicationsStephen Turner, Managing Director Simon Robinson / Ana RibeiroMob: +61 418440844 Tel: 020 7493 3713 Notes to Editors About International Ferro Metals Limited IFM listed on AIM in September 2005 when it raised £80m with a placing of228,571,429 new ordinary shares at 35 pence each. It had already raised debtfinancing from Standard Bank, Nedbank and SAAB. 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 IFM and will operate the Buffelsfontein project. Global Eagle,chaired by Seth Phalatse, is IFMSA's black economic empowerment partner. One of IFM's major shareholders is its Chinese partner, Jiuquan Iron and SteelGroup Company Limited ("JISCO"). JISCO has entered into an off-take agreementto buy ferrochrome from IFM at market related prices and will market ferrochromein China, Taiwan, Japan and Korea. IFM 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 an essential raw material in stainless steel production. Thisalloy consists of iron and up to 72% chromium. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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