Chromex Mining
Chromex Mining plc (AIM: CHX) is an AIM quoted dedicated chrome company established to acquire, control and develop chromite mining and processing facilities. It currently has two key mining assets located on the Bushveld Complex in South Africa, which between them have total resources of approximately 41 million tonnes of chromite. Chromex is focused on growing its current resource base with near production projects to supply beneficiated chrome products into the ferrochrome and stainless steel markets. In addition the Company continues to review additional prospects.
Chromex to invest £1.5 mln in new processing facility at Stellite chrome mine
AIM-listed Chromex Mining PLC plans to invest £1.5 million in a new processing facility at its Stellite chrome mine in South Africa, which will enable Chromex to supply a range of products including chemical grade and metallurgical grade sands in addition to chrome ore currently being produced.
To finance the construction, the company has secured a loan of Rand30 million, or £2 million, and the lender has the option to convert the loan into Chromex ordinary shares at a 22 pence strike price.
The plant is expected to be commissioned at the end of April 2009.
In line with the reduced demand for chrome, Chromex has temporarily reduced production at Stellite to approximately 10,000 tonnes per month of run-of-mine ore. However, Chromex currently has two users seeking off-take agreements for this ore, and is also actively discussing an off-take agreement for chemical grade sand. An update on these developments will be provided in due course.
Stellite currently has a SAMREC compliant resource estimate of 31.9 million tonnes of chromite, which is being mined. Chromex plans to upgrade the inferred resources through additional drilling and look at the feasibility of developing the underground resources in 2009.
Chromex CEO Russell Lamming said: ”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. Importantly, 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.”
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Other Chromex Mining articles
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03/03/10 Chromex Mining’s Stellite Farm produces encouraging PGE testwork
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10/11/09 Chromex to restart mining operations at Stellite Mine in December, shares jump
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06/05/09 Chromex Mining is a rare animal – a pure chrome play in South Africa’s Bushveld
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17/09/08 Chromex Mining begins production at Stellite
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07/09/07 Chromex Mining gets the green light at Mecklenburg.
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30/10/06 Chromex Mining is Marching towards production.
Other Chromex Mining news
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05/03/10 Chromex Mining turns profit in FY09 as Stellite operations build momentum
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11/02/10 Ocean Equities says Chromex Mining positioned to benefit from Stellite restart as chrome demand climbs
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09/02/10 Chromex Mining restarts operations at Stellite chrome mine amid improved market conditions
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20/07/09 Chromex appoints COO Graham Stacey to the board
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03/06/09 Chromex Mining delivers maiden profit despite commodity turmoil
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24/03/09 Chromex Mining confident for mid-term as it generates first revenue
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16/03/09 Chromex Mining gets additional rights at Stellite for PGEs and gold
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05/03/09 Ocean Equities starts coverage of Chromex Mining with upbeat note
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29/01/09 Chromex Mining signs chromite offtake deal for Stellite project in South Africa
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21/11/08 Samancor goes to court over Chromex mining right at Mecklenburg, South Africa