Merafe's headline earnings came in at 518 million rand ($31.98 million) in the six months to June 30, compared to 315 million rand during the same period last year.
Revenue from chrome ore increased by 78% from the prior period to 1.8 billion rand, driven by a 75% jump in chrome ore sales volumes compared to the first half of last year. The chrome ore price rose 11% during the period.
The company's attributable ferrochrome production from its joint venture with Glencore (GLEN.L) plunged 75% to 28,000 metric tons during the six months.
This was mainly because of the suspension of production at the Wonderkop and Boshoek smelters, as well as the partial suspension of operations at the Lion smelter.
Merafe announced plans to restart the Wonderkop and Boshoek plants in June, after South African energy regulator Nersa approved a discounted power tariff for struggling ferrochrome producers. This follows the earlier resumption of operations at Lion smelter in February.
Ferrochrome, an iron-chromium alloy used mainly in stainless steel production, is manufactured in energy-intensive smelters.
Merafe said the outlook for ferrochrome in the second half of the year was dimmed by a potential glut amid increased supply from China and weak global stainless steel demand.
South Africa, the world's biggest chrome ore producer, has lost its position as the top processor of chrome into ferrochrome to China, mainly due to high electricity costs.
This forced the South African government to intervene with a 54% reduction in the electricity tariff to avert more smelter closures after dozens ceased operations.
($1 = 16.1977 rand)
