The effects of these supply limitations are already visible. Merafe Resources, for example, experienced a 21% decline in output from its joint venture with London listed Xstrata in the first quarter, largely due to cuts in electricity supply. In this instance, Eskom has secured an agreement with Xstrata Merafe Chrome Ventures to temporarily shut down five of its furnaces to assist Eskom in meeting the country's power demands. Ferrochrome producer Ferro Metal has also agreed to take part in Eskom's electricity buy-back programme between March and May. A total of 130 000 tons' worth of production could be lost as a result of these shutdowns.