Announcement by African Rainbow Minerals Limited
24 October 2008
Significant adverse changes in the dynamics of the global economy have led to a downturn cycle in most economic sectors. For ARM the most significant immediate impact is the sudden decline in demand for its products in the spot commodity markets, more specifically the demand for Ferrochrome and Chrome Ores.
This change in demand,has necessitated a review of the production schedules of Assmang’s Chrome Division and Nkomati Chrome operations. To achieve the necessary reduction in volume the following actions have been taken:
- Assmang will switch-out two of its Ferrochrome Furnaces at the Machadodorp Works as from Saturday, 25 October 2008, until demand has recovered. Dwarsrivier will continue mining and review the situation on an ongoing basis. Assmang is jointly controlled between ARM (50%) and Assore Limited (50%).
- Nkomati expects to reduce chrome ore and concentrate sales, will continue mining the chrome as part of the pre-stripping of the pits for the Nkomati Nickel large scale expansion and will stockpile the chrome ore. Nkomati Nickel and Chrome mine is jointly controlled between ARM (50%) and Norilsk Nickel (50%).
ARM, together with our partners, will review the situation on all operations on an ongoing basis, taking cognisance of the uncertain market conditions and considers the measures adopted to be prudent.
Andre Wilkens, Chief Executive Officer said: “Under these uncertain times, the fittest company will come out strongest and see the opportunities. ARM still views the longer term growth prospects for the commodity market as strong. With the exception of chrome, production at ARM’s existing operations and expansion projects remain unaffected. We continue to aggressively focus on the cost competitiveness of our operations and cautious capital investment.”
For more information please contact:
Corporate Development & Head of Investor Relations
Office: +27 11 779 1507
Mobile: +27(0) 83 411 2881
Chief Executive: ARM Ferrous
Office: +27 11 779 1108
Mobile: +27(0) 82 492 6948
Executive Director: Business Development
Office: +27 11 779 1476
Mobile: +27 82 412 1004
Issued by sponsor:
Deutsche Securities (SA) (Proprietary) Limited