International Ferro Metals (LSE:IFL)
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5 Years : From May 2008 to May 2013
International Ferro Metals Ltd. (IFL.LN) Wednesday said it has struck a deal to receive 15,000 metric tons of chromite a month from a unit of Anglo Platinum Ltd. (AMS.JO) at no cost other than that of transporting the materials.
The volume represents almost 30% of IFM's current concentrate requirements.
The company said it will pay about 150 million rand ($19.6 million) for the construction of a chrome retreatment plant to treat tailings from Angloplat's Rustenburg Platinum Mines concentrator.
"This new source of chromite supply for our two furnaces will reduce our input cost and will enable us to better leverage the improving ferrochrome market conditions," Chief Executive Officer David Kovarsky said.
Construction of the plant is expected to begin in June and commissioning should follow 12 months later, IFM said. The contract with Angloplat is for 10 years.
IFM is a producer of ferrochrome, a key ingredient in stainless steel.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; email@example.com