Afarak Group Plc - Company Announcement

AFARAK MOGALE INCREASES ITS PRODUCTION OF FERROCHROME

07:00 London, 09:00 Helsinki, 16 December 2016 - Afarak Group Plc ("Afarak" or
"the Company")


 Afarak Mogale successfully completes transition of silicomanganese furnace to
                                  ferrochrome.

        Already produced 7,000 additional tonnes of on-grade ferrochrome



Afarak Group has successfully completed the transition of one of its furnaces at
its  Mogale  plant  from  producing  silicomanganese to ferrochrome.  The Mogale
plant  currently has two  ferrochrome furnaces in  operation and another furnace
still producing silicomanganese.

Dr  Alistair Ruiters, outgoing-CEO of Afarak,  said that this project highlights
Afarak's  responsiveness to market conditions. "Afarak has established itself as
a  lean and flexible  vertically-integrated company.  In  response to favourable
ferrochrome  market conditions,  Afarak took  the decision  to switch one of its
silicomanganese  furnaces to ferrochrome.  This added production capacity allows
us to reap the benefits of the current market upswing.'

Guy   Konsbruck,   CEO-designate  of  Afarak,  added  that,  "Afarak  Mogale  is
effectively  operating as a  swing plant.  This  gives Afarak the  ability to be
nimble  and change  its production  capacity in  line with market expectations.
With  the ferrochrome  benchmark rising  to an  eight-year high, Afarak is well-
positioned to take advantage of this upswing."


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Attachments:

PR Mogale EN.pdf