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JSE-listed Merafe Resources will suspend operations at its Boshoek and Wonderkop ferrochrome smelters, in North West province, indefinitely. The decision was made after a business review process – initiated by the company through its chrome pooling and sharing venture (PSV) with Glencore, in respect of its ferrochrome smelting business in response to the ongoing market challenges – was completed.
Among other considerations, the business review process contemplated the suspension of certain of the PSV’s ferrochrome furnaces in May. Operations at the Boshoek smelter will be suspended from May 1, while operations at the Wonderkop smelter will be suspended from May 31 to allow time for the processing of the PSV’s remaining raw materials during the month.
Following the suspension of smelting operations at Boshoek and Wonderkop, both complexes will continue with essential maintenance activities. The suspensions will remain in effect indefinitely, pending any material change in ferrochrome market dynamics. Merafe’s Lion smelter will continue ferrochrome production for the remainder of the year.