South African strike hits ferrochrome exporters

Wed May 12, 2010 4:08pm GMT

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By Agnieszka Flak

JOHANNESBURG (Reuters) - A nationwide, indefinite transport strike paralysed South African railways and ports and forced mining groups Xstrata and Samancor to declare force majeure on Wednesday on ferrochrome exports.

The three-day-old strike at state logistics group Transnet

widened after the company's biggest union joined in what is the latest public protest ahead of next month's World Cup soccer tournament in South Africa.

Xstrata said it would halt shipment of ferrochrome, a key ingredient in stainless steel, and chrome ore.

"The situation is still being assessed, until we've got a better idea of what's happening, it's going to be difficult to ascertain the impact," said Pam Bell, a spokeswoman at London-listed Xstrata.

Samancor, the world's 2nd-biggest ferrochrome producer, also declared force majeure, traders said.

Transnet operates no passenger services, but a prolonged strike could affect imports, internal fuel supplies and exports of fresh fruit, grains, ferrochrome, iron ore and coal.

South Africa is one of the world's biggest coal exporters, mainly to power stations in Europe and Asia. Continued...

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<p>Railway tracks are seen near Moses Mabhida stadium which is being built for the 2010 FIFA World Cup in Durban August 19, 2009. Photo taken August 19, 2009.</p>

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