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Sibanye-Stillwater finalises chrome agreements with Glencore-Merafe Venture

MERGERS & ACQUISITIONS

Siphelele Dludla|Published

According to Sibanye-Stillwater, the transaction represents a strategic and mutually beneficial restructuring designed to unlock long-term value from its chrome by-product streams and strengthen operational synergies with Glencore’s processing expertise.

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Sibanye-Stillwater has announced that all conditions precedent have been met for the implementation of its new chrome agreements with the Glencore-Merafe Venture (GM Venture), paving the way for the strategic transaction to take effect on 1 November 2025.

The agreements — comprising enhancements to the historical Marikana Contract originally concluded between Lonmin and the GM Venture, as well as a new Chrome Management Agreement (CMA) covering Sibanye-Stillwater’s South African PGM operations — were first announced in February.

According to Sibanye-Stillwater, the transaction represents a strategic and mutually beneficial restructuring designed to unlock long-term value from its chrome by-product streams and strengthen operational synergies with Glencore’s processing expertise.

It said the key benefits of the transaction included:

  • Accelerated Chrome Volumes and Cash Flow: The enhancements to the Marikana Contract are expected to accelerate contracted chrome deliveries by around 20 years through higher feed rates and improved recoveries at the Marikana Chrome Recovery Plants (CRPs). Once the Marikana Contract expires, these CRPs will be incorporated under the new CMA, increasing Sibanye-Stillwater’s share of free cash flow from chrome production.

  • Immediate Value Enhancement: All Sibanye-Stillwater CRPs other than those at Marikana will immediately benefit from the CMA’s value-enhancing provisions once the agreement becomes effective in November.

  • Operational Synergies: Glencore’s processing and operational expertise is expected to boost chrome production yields and reduce operating costs across all affected CRPs.

  • Project Development Support: Improved chrome production economics will enhance the commercial viability of brownfield expansion projects at Sibanye-Stillwater’s South African PGM operations, which are currently under assessment.

Sibanye-Stillwater CEO Richard Stewart said the completion of the Glencore-Merafe agreements marks a significant milestone in the company’s value creation strategy.

“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,” said Stewart.

“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.”

The agreements position Sibanye-Stillwater to strengthen its chrome production base, improve operational efficiency, and support future growth opportunities across its South African platinum group metals portfolio.

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