Xstrata is expanding its SA ferrochrome capacity in a project that includes a new smelter, energy efficient technology and a thermal power generation plant.
The investment has been under consideration for 3 years so it gives us an idea of the time frames Xstrata looks at before moving on an investment.
This gives some confidence on NKP PGM projects as Xstrata has shown its continued interest in SA and is looking at own power generation options there. They seem not to be scared off about mine nationalisation talk or a high exchange rate.
BR Max
NKP Price at posting:
59.0¢ Sentiment: Buy Disclosure: Held
