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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (30883)	1/6/2009 7:16:11 PM
From: LoneClone	Read Replies (1) \| Respond to of 194000

Chromex to build new processing facility at SA mine miningweekly.com By: Creamer Media Reporter Published on 6th January 2009 JOHANNESBURG (miningweekly.com) - Aim-listed Chromex Mining has finalised plans to construct a new processing facility at its Stellite chrome mine in South Africa, where it would temporarily reduce output. The new plant was expected to be fully commissioned by the end of April, for a cost of about R22-million, and has been designed to process 40 000 t/m run-of-mine ore. "The construction of the plant will provide a further string to our bow and allow us to deliver a range of products to market, which have the ability to positively impact revenues going forward,” said Chromex CEO Russell Lamming. However, in line with the reduced demand for chrome, Chromex has temporarily reduced production at Stellite to about 10 000 t/m of run-of-mine ore. The company said that it had two users seeking off-take agreements for this ore, and that it was also actively discussing an off-take agreement for chemical grade sand. The Stellite mine, on the Western limb of the Bushveld Complex, has a resource estimate of 31,9-million tons of chromite. Chromex planned on upgrading the inferred resources through additional drilling, and would look at the feasibility of developing the underground resources in 2009. The new processing facility would enable Chromex to supply a range of products including chemical grade, and metallurgical grade sands, as well as chrome ore currently being produced. The company has secured a loan facility of R30-million to finance the plant construction. Chromex stated that the lender has, subject to South African Exchange Control approval, the option to convert the loan into Chromex ordinary shares at a 22p a share strike price. “In addition to the loan facility we have a healthy cash position of £2-million and a low cost base, which places Chromex in a strong position to weather the current economic storm and actively position itself for when demand for beneficiated chrome products rise once again," reassured Lamming.