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Group information / Commodity businesses

Xstrata Alloys

Xstrata Alloys

Overview

Xstrata Alloys is the world’s largest producer of ferrochrome, is a leading producer of primary vanadium and has a growing platinum group metals business . Xstrata Alloys also owns carbon and anthracite operations which supply key raw materials to its ferrochrome production operations.

Xstrata Alloys’ operations are located across the mineral-rich Bushveld Complex of South Africa’s North West and Mpumalanga provinces, where it employs over 12,300 people including contractors. In line with South Africa’s Mining Industry Charter, Xstrata Alloys has fulfilled all Black Economic Empowerment obligations in respect of joint ventures and ownership, which is crucial for security of tenure. It is in line to meet all other empowerment criteria by the five year review deadline of 2009. Merafe Resources, Kagiso Trust Investments, the Ngazana Consortium and the Bakwena Ba Mogopa Community all have ownership participation in respect of chrome, PGM and vanadium assets respectively.

Strategy

Xstrata Alloys’ strategy is to:

  • Maintain a market leadership position in the ferrochrome industry by leveraging our distinctive scale of operations and position in South Africa. Xstrata Alloys will maintain its unique access to a combination of raw materials and expertise across a wide range of mining and process technologies.
  • Enhance our competitive cost position through; the use of proprietary Premus Technology and other initiatives that minimise the use of high-cost inputs.
  • Utilise Xstrata Alloys’ capabilities and technologies as a springboard to building a diversified production base and continued quality growth.
  • Continue the progress made in the Xstrata Merafe Chrome Venture towards full compliance with the spirit of the MPRDA across chrome and vanadium.
  • Grow a sustainable platinum group metals business of scale through the expansion of existing operations; and by utilizing acquisition opportunities when they become available.
  • Position the vanadium division optimally to benefit from price spikes and ensure resilience in the downturns.
  • Leverage the technical flexibility of our Rhovan operation to develop high-value vanadium alloy products for specific international markets.
  • Eliminate fatalities and achieve a step-change in safety performance through intensive training and knowledge-sharing programmes.
    • Continue to work on compliance of the Mineral and Petroleum Resources Development Act (MPRDA).
    • Secure all outstanding mining rights in terms of the MPRDA.