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ST: Global ferrochrome ore price may doubled - Report
 
Albanian minerals in New York and her sister company Bytyci ShPK in Albania forecast that global growth will move from a decline of 1% in 2009 to a gain of 5% in 2010. Demand for everything to pick up from steel to chrome ore, ferro chrome, nickel, copper, aluminum for infrastructure, construction in all real estate sectors, gas pipes, multi billion investments, railroads, auto and aircraft production.

Investors will continue using metals as a hedge to protect against risk, sovereign debt issues and inflation. In the long term metal prices will rise due to trillions of dollars of stimulus money injected into the world economy.

The mining industry, which accounts for 15% of South Africa's electricity consumption, has already experienced rationing from Eskom. At the start of 2008, the utility was forced to limit electricity supplies after heavy rain damaged coal stocks. It began a system called load shedding, which involved rolling blackouts across parts of the country. South Africa's largest miners, including Anglo American, Anglo Platinum and AngloGold Ashanti, were forced to shut down operations for several days.

The miners remained rationed for months and the sudden drop in production caused metal prices to spike. Platinum, which is used in catalytic converters for cars, rose by 24% to USD 2,100 in the weeks after load shedding began. The price of ferrochrome doubled and gold prices gained about 5%.

Platinum and chrome were particularly badly affected because South Africa accounts for nearly three quarters of global production of these metals. The electricity squeeze eased last year because the economic downturn reduced industrial demand for power.

South African electricity consumers still operate under the threat of load shedding and a meter on Eskom’s website shows when the danger of blackouts is high.
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