Xstrata asks SA to cut ore shipments

Xstrata, which produces a quarter of the world’s ferrochrome, has asked the South African government to curb exports of chrome ore to China by rival Kermas Group by imposing a duty on shipments. South Africa’s export of unprocessed chrome ore rose to 200 000 tons last year from 50 000 tons in 2002 as Kermas increased shipments to China, said Deon Dreyer, the managing director of Xstrata’s ferrochrome business. Kermas might raise its chrome ore exports to 1 million tons a year over an unspecified period, Dreyer said. Kermas officials declined to comment. “South Africa is the logical place to make ferrochrome and we need it to create jobs here,” Dreyer told Business Report. “We’re exporting jobs to China by giving them our ore.