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MRF - Merafe Resources Limited - Amendment to the Eskom buy-back agreement:

Release Date: 30/03/2012 13:39
Code(s): MRF
Wrap Text

MRF - Merafe Resources Limited - Amendment to the Eskom buy-back agreement: temporary closure of an additional two furnaces MERAFE RESOURCES LIMITED (Incorporated in the Republic of South Africa) Registration number 1987/003452/06 Share Code: MRF ISIN: ZAE000060000 Amendment to the Eskom buy-back agreement: temporary closure of an additional two furnaces Further to the announcement dated 17 February 2012, shareholders are advised that the Xstrata-Merafe Chrome Venture ("the Venture") has amended the agreement with Eskom to assist with the power utility`s power supply requirements. The key features of the amendments are: * The Venture will temporarily close an additional two of its furnaces until 31 May 2012; * In return, Eskom will buy-back the energy not consumed by these two additional furnaces until 31 May 2012; * The additional two temporary furnace closures, which will be effective from 1 April 2012 until 31 May 2012, will have a net positive economic impact for both the Venture and Eskom and will not result in job losses at these two furnaces. The additional two temporary furnace closures will be at the Venture`s Wonderkop smelter and Lydenburg smelter. Therefore, as a result of the power buy-back arrangement with Eskom, inclusive of the above amendments, a total of seven furnaces will be temporarily closed, four at the Rustenburg smelter, two at the Wonderkop smelter and one at the Lydenburg smelter. The total ferrochrome production loss to the Venture as a result of the seven temporary furnace closures is estimated to be 130,000 tonnes, an additional 30,000 tonnes resulting from the two further temporary furnace closures. Sandton 30 March 2012 Sponsor Deutsche Securities (SA) (Proprietary) Limited Date: 30/03/2012 13:39:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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