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The much maligned South African Power Company Eskom has suffered further setbacks in its bid to meet the rainbow nation's increasing power demands. A number of factors are causing short term power output problems including a generator at Koeburg which is down for maintenance, a heatwave causing increased air conditioning use and coal quality problems at power stations. Faced with power shortfalls Eskom has offered Ferro Chrome smelters payments to switch off their generators, which may be attractive in the current market, especially for charge chrome producers.
In other developments for the South African Chrome industry, the McKinsey Report commissioned by South African charge Chrome producers is recommending an export tax of $100 per tonne on Chrome ore, controlled via a centralised selling company.
