Multinational mining and metals, Sibanye-Stillwater has announced that all the conditions necessary for implementation of the new chrome agreements with the Glencore Merafe Venture (GM Venture) have been fulfilled.
The strategic and mutually beneficial enhancements to the historical contract previously concluded between Lonmin and the GM Venture (Marikana Contract) and the new Chrome Management Agreement (CMA) at the SA PGM operations (announced on 19 February 2025), will become effective from 1 November 2025.
Key benefits of the transaction include:
- Accelerated volumes to increase future cash flow: The enhancements to the Marikana Contract are expected to accelerate the completion of delivery of contracted chrome volumes by approximately 20 years, through increasing feed and improving recoveries from the Marikana Chrome Recovery Plants (CRPs). Accelerated delivery will, upon expiry of the Marikana Contract and the Marikana CRPs becoming subject to the CMA, increase Sibanye-Stillwater's share of free cash flow from chrome production from the Marikana CRPs
- Immediate benefits: Other than the Marikana CRPs, Sibanye-Stillwater CRPs will immediately be subject to and benefit from the value-enhancing provisions of the CMA, once the transaction becomes effective
- Operational synergies: Glencore will leverage its processing expertise to optimise chrome production yields and is expected to reduce operational costs across all relevant CRPs
- Project benefits: The improved economics of Sibanye-Stillwater's chrome production resulting from the transaction, is expected to enhance the inherent value and commercial viability of brownfield extension projects at the SA PGM operations, which are currently being assessed
Sibanye-Stillwater CEO, Richard Stewart commented, “The closure of the Glencore Merafe agreements marks a pivotal step in unlocking long-term value from our significant chrome by-products at our SA PGM operations. Aligning operational expertise and commercial interests, we are laying the foundation for sustainability at our SA PGM operations, benefitting all stakeholders and enhancing returns for the Group.”