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Group information / Commodity businesses

Xstrata Alloys

Products

Ferrochrome

Ferrochrome is a corrosion-resistant alloy of chrome and iron containing between 50% and 55% chrome. Over 80% of the world's ferrochrome is utilized in the production of stainless steel. The average chrome content in stainless steel is approximately 18%.

Xstrata, together with its ‘Pooling and Sharing Venture’ (“PSV”) partner, Merafe Resources Limited, have a combined capacity in excess of 1.76 million tonnes of ferrochrome per annum. Xstrata is currently the world's largest and amongst the lowest cost integrated ferrochrome producers in the world.

All of the group's chrome mines are shallow, underground mines. The gently dipping reefs of chromite are accessed by decline shafts. Mining is of a board and pillar nature and is currently conducted at depths ranging from 50 to 350 metres below surface. All development is on reef, thereby minimizing waste dilution. In addition to ore from its own mines, ore is purchased from nearby platinum producers, where chrome-rich finds are discarded as a waste product.

Vanadium

The principal end-use of vanadium is as an alloying agent in steel and other alloys that accounts for 95% of world consumption of vanadium - more than 200 million pounds per annum. Just over a third of the world's vanadium is produced as a primary product, the balance is produced as by-products of the iron and steel, oil refining, power generation and uranium enrichment industries. The vanadium content per tonne of steel has increased significantly over the last 10 years as new applications for vanadium have been found to improve steel's strength-to-weight ratio and steel consumption has ramped up substantially over this timeframe.

Xstrata produces vanadium pentoxide and ferrovanadium from an integrated production facility at Rhovan, South Africa. Vanadium pentoxide and ferrovanadium are sold to a diversified international customer base. An intermediate product, vanadium trioxide, is also produced and sold as a feedstock to other ferrovanadium producers.