LONDON International Ferro Metals Ltd. (IFM) will keep one of its two furnaces in South Africa offline for an additional two months under a power buyback deal with state energy group Eskom Holdings SOC Ltd., the company said Jan. 24.
The Sydney-based ferrochrome producer turned off its furnace Jan. 18 due to maintenance work that was originally scheduled for Feb. 1.
The furnace will remain offline between Feb. 1 and March 31, and the company will sell the conserved electricity back to Sandton, South Africa-based Eskom.
"The agreement with Eskom enables the company to assist with South Africas electricity supply requirements and sell electricity back to the grid at a financially beneficial rate for the next two months," chief executive officer Chris Jordaan said.
None of IFMs contractual commitments will be affected, as its second furnace will continue to run at full production, the company said. No jobs will be cut.
IFM is the latest ferroalloys producer in South Africa to cut capacity under the Eskom buybacks.
A version of this article was first published by AMM sister publication Metal Bulletin.