International Ferro Metals (LSE:IFL)
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5 Years : From Jun 2008 to Jun 2013
International Ferro Metals Limited (IFL.LN), said Wednesday that it has entered into an agreement with Rustenburg Platinum Mines Limited (RPM), a subsidiary of Anglo Platinum Limited (AGPPY), whereby IFL will pay ZAR150 million for the construction of a chrome re-treatment plant or CRP to treat the tailings arising from RPM's UG2 concentrator situated at their Waterval section.
-The CRP's primary objective will be to extract chromite from the tailings.
-The CRP will be constructed and commissioned by an EPCM Contractor and owned, maintained and operated by RPM.
- IFL will be entitled to 15,000 tonnes of chromite per month or tpm at no cost other than the cost of transporting the concentrate to its facilities at Buffelsfontein, which is about 50km from the CRP.
-The 15,000tpm represents almost 30% of the company's current concentrate requirements and the effective cost of the concentrate will be significantly below the company's in-house mining cost.
-The contract endures for ten years from commencement of the project and IFL is entitled to 15,000tpm from the date of commissioning of the CRP.
-It is estimated that IFL will therefore receive concentrate for a period of nine years.
-Construction on the CRP is expected to commence in June 2010 and commissioning is expected to follow 12 months later.
-The Company will fund the project using existing cash facilities.
-By Razak Musah Baba, +44-20-7842-9275; email@example.com