Small producers operated near Rajmi.
Because most deposits are small, the
Government of Oman encouraged native
Omani tribes to mine them.
Philppizes.-National Developments.-
National Power Corp., the national
electrical energy supplier on Mindanao
Island proposed a 40% price increase in
electricity for major electrical energy
consumers. The price increase was to be
implemented in 1994.
Chromite Ore.-Chromite ore
production is centered on Luzon Island
where Benguet Corp mines refractory-
grade chromite from the Coto Mine.
Ferrochromium .-Ferrochromium
producers on Mindanao Island were
closed for part of the year owing to lack
of electrical power owing to low water
levels.
Romania.-Ferom-Joint Stock Co., a
Government-owned ferroalloy company,
produced low-carbon and high-carbon
ferrochromium. Ferom operated a 33-
megavolt-ampere furnace with an annual
production capacity of 52,000 tons of
high-carbon ferrochromium and a 3.5-
megavolt-ampere refining furnace to
produce low-carbon ferrochromium from
high-carbon, with an annual capacity of
9,600 tons.  Ferom  installed a dust
collection system. It also requested the
Government limit imports from the C.I.S.
to protect its domestic market.
Russia.- Ferrochromium.-
Chelyabinsk Electrometallurgical Works
reported production of about 210,000 tons
of ferrochromium, of which 168,000 tons
was low-carbon and 42,000 tons was
high-carbon. As a result of antidumping
cases against C.I.S. ferrochromium in
Europe, Chelyabinsk contracted with
Mannesman Demag (Germany) to convert
low-carbon ferrochromium production
capacity to high-carbon ferrochromium at
a cost of $4 to $5 million.
Serovsk reported annual marketable
product production capacity at 80,000
tons of high-carbon ferrochromium,


150,000 tons of medium- and low-carbon
ferrochromium, and 40,000 tons of
ferrochromiumsilicon. Serovsk produced
228,000 tons of ferrochromium, of which
148,000 tons was low-carbon and 80,000
tons was high-carbon.  Serovsk used
chromite  ore  from   Russia   and
Kazakhstan.  To produce high-carbon
ferrochromium, Serovsk required lump
ore from Kazakhstan to mix with Russian
fines.  To   reduce  dependence on
Kazakhstan lump ore, Serovsk planned to
put in a briquetting plant with production
capacity of 300,000 tons per year.
Serovsk produced low-carbon
ferrochromium  from  nine  furnaces,
ferrochromiumsilicon from five furnaces,
and high-carbon ferrochromium from four
furnaces.
Chromium Metal.-Polema, Tula
Chermet Complex, Tula City, reported
electrolytic chromium metal production
with an annual production capacity of
about 1,000 tons.
Slovakia.-Ovarske Ferozria Inarske
Zavody, Istebne City, produced high-
carbon ferrochromium with an annual
production capacity of about 45,000 tons
graded at 62% to 70% chromium.
Slovenia.-Tovarna Dugika Ruse
produced high-carbon ferrochromium at
about 60% of capacity in 1993. Tovarna
stops ferrochromium production from
December through March when electrical
energy cost is highest.
South Africa, Republic of.-South
African economic policy is one of vertical
integration of industries that are based on
its domestic mineral assets. To this end,
the chromium industry of South Africa
has moved from being a major world
chromite ore supplier to being the major
supplier  of  chromite   ore   and
ferrochromium to Western markets.
South Africa planned to increase stainless
steel annual production capacity to
526,000 tons in 1995, most of which was
destined for export.
Chromium production capacity
utilization in South Africa was low in


1993. The high price of ferrochromium
in 1988-89 that resulted from demand by
stainless steel producers in excess of
capacity put capital in the ferrochromium
producers'  hands   and   stimulated
investment in new ferrochromium plants
and equipment.    In  1990, existing
ferrochromium producers increased their
production capacity by acquiring smaller
producers  or  by   expanding  their
production facilities. At this time, CMI
added a furnace and acquired Purity
Ferrochrome, a new producer; Samancor
added furnaces at its Tubatse smelter;
MS&A started construction of a new
ferrochromium production facility using
a new production process (kiln furnace
prereduction followed by electric furnace
smelting) at Middelburg and increased the
transformer capacity of its DC transferred
plasma arc furnace at Krugersdorp; and
Chromecorp Technology added a furnace.
(Feralloys made no changes.) In 1991,
Samancor bought MS&A.
During and following the introduction
of this new ferrochromium production
capacity in South Africa and other
capacity around the world, Western
stainless steel production continued to
grow   steadily.  However, because
ferrochromium production capacity was
added faster than stainless steel demand
growth, the world ferrochromium market
moved into a state of excess supply and
prices declined. In addition, actions in
the former U.S.S.R. and China
exacerbated the situation. The collapse of
the U.S.S.R. followed by the integration
of C.I.S. with Western economies, a
process that may continue for years to
come, changed the chromium markets.
Economic recession in the East (i.e.,
former U.S.S.R.) resulted in declining
chromium demand in Eastern markets and
the entry of Eastern raw materials
suppliers into Western markets adding to
chromium excess supply and downward
pressure on prices.  China, seeing an
opportunity to increase ferroalloy sales,
shifted some of its production capacity to
ferrochromium.     China  has  been
increasing (about doubling annually) its
ferrochromium exports since 1990.
China's  significant  ferrochromium
exports in 1992-93 added to excess


CHROMRUM-1993




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