Xstrata Plc approved the second phase of its Lion ferrochrome complex expansion in South Africa. The ZAR 4.9 billion development involves the construction and commission of a 360,000tn/yr capacity smelter, increasing Xstrata Merafe’s ferrochrome capacity to 2.3 million tns/yr. A Magareng mine worth ZAR 700 million is set for development following this project with a proposed capacity of 1.2 million ROM tns/yr. Construction is scheduled for early 2011 and commissioning will start the first half of 2013. The use of Xstrata’s energy efficient Premus technology will reduce the overall cost of ferrochrome production by 6% as Premus technology consumes 1/3 less electricity than other smelting technologies. Xstrata is advancing its own power generation plans and is currently completing a feasibility study for the first phase of a 600MW thermal power generation plant that will supplement future electricity supply.