20th Jul 2006 07:00
International Ferro Metals Limited20 July 2006 20 July 2006 International Ferro Metals Limited ("IFM" or "the Company") Opening of Chromite Mine Update on Plant Construction International Ferro Metals (AIM:IFL) announces the opening of its chromite mine.At a ceremony officiated by representatives of the South African, Chinese andAustralian Governments the Company confirmed that the construction of itsintegrated ferrochrome smelting and mining operation is progressing well andremains on schedule to achieve a production rate of 267,000 tonnes per annum offerrochrome by the end of 2007. Listed below are details of the Company's LesediMine and an update on the construction of the facility. Fully Commissioned Mine - Lesedi, meaning "place of light" in the local Tswana language, is the name given to IFM's underground mine where the extraction of chromite from the MG1 and MG2 chromite seams of the Bushveld Complex takes place. - A material access way has been completed to a decline depth of approximately 400 metres at a dip of 10 degrees on the MG1 chrome seam. The main conveyor belt system has been installed down the decline to 280 metres. Other infrastructure which includes compressed air, service water, electrical power, as well as a ventilation shaft with surface fans has been commissioned. - At present approximately 260 people are employed by SDM, the appointed mining contractor. The number of miners will increase to 500 over the next six months. - Progress to date is in line with the production schedule and will increase to 63,000 tons per month during steady state production. Production was 16,000 tonnes per month during June 2006. Ore will be stockpiled for the supply to the Company's ferrochrome furnaces during the first quarter of 2007. Construction Progress - Project progress, including the construction of beneficiation and smelting facilities, is over 55% complete. 92% of the project capital expenditure is now under fixed price contracts. The project remains on schedule and within its cost budget. IFM plans to produce 267,000 tonnes of saleable ferro chrome per annum. - Progress at the mine and construction site can be viewed on the Company's web site at www.ifml.com/Project%20Photos.aspx Project Finance - On 30 June 2006, IFM made its initial draw down on the ZAR 742 million project finance facility provided to it by Standard Bank and Nedbank in South Africa. The Company has fully drawn the ZAR 150 million debt facility provided by SAAB ETT AB. Stephen Turner, Managing Director of IFM, commented: "The commissioning of IFM'schromite mine represents a major milestone in the Company's establishment as along term producer of ferrochrome for the stainless steel industry. Constructionof the integrated smelter facility remains on target to commence production inearly 2007 placing it in the ideal position to take advantage of the strong,growing demand for ferrochrome and its near record price. We look forward toproviding further updates on the construction and mine expansion and would liketo thank our management and contractors for their considerable achievements todate." ENDS For further information please contact: International Ferro Metals Limited Parkgreen CommunicationsStephen Turner, Managing Director Simon Robinson / Ana RibeiroMob: +61 418 440 844 Tel: 020 7493 3713www.ifml.com 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 agreement tobuy ferrochrome from IFM at market related prices and will market ferrochrome inChina, Taiwan, Japan and Korea. IFM has also entered into a marketing agreementwith New York-listed Commercial Metals Company, which will act as an agentoutside 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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