Bauba re­opens chrome mine as price re­bounds

The Star Early Edition - - BUSINESS REPORT -

PLAT­INUM min­ing Bauba said yes­ter­day that it had re-opened its wholly-owned chrome mine Moei­jelijk af­ter plac­ing it un­der care and main­te­nance.

This was af­ter the chrome­ore price dropped from $175 (R2 380) a ton to $120 a ton in Jan­uary last year, which made the com­pany fi­nan­cially un­vi­able. Bauba’s chief ex­ec­u­tive, Nick van der Hoven, said yes­ter­day that the re­bound­ing chrome-ore price had prompted Bauba to re­sume its Moei­jelijk mine. He said chrome-ore price had bounced back from a low of $80 a ton to $380 a ton. Van der Hoven said Moei­jelijk was ex­pected to pro­duce 20 000 tons of chrome ore within three months, and ex­pected chrome grade to be be­tween 39 per­cent and 41 per­cent.

“From a dif­fi­cult po­si­tion in 2016, Bauba has – hav­ing pre­served its chrome-ore re­serves for more favourable prices – come into a stronger a po­si­tion and is well po­si­tioned to cap­i­talise on these im­proved prices,” said Van der Hoven.

The com­pany re­ported a loss of R6.4mil­lion from R78.7m sales for the fi­nan­cial year end­ing in June. – Manyane Manyane

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