Sibanye-Stillwater Seals New Chrome Deal with Glencore Merafe Venture

Sibanye-Stillwater has taken a major strategic step in strengthening its chrome operations by finalising a comprehensive Chrome Management Agreement (CMA) with the Glencore Merafe Venture, a long-standing leader in South Africa’s ferrochrome industry. Effective from November 1, 2025, the agreement will align operational, technical, and commercial objectives between the two industry giants, creating a more efficient and value-driven framework for chrome production across Sibanye-Stillwater’s platinum group metal (PGM) assets. This partnership reflects Sibanye’s broader strategy of unlocking long-term value from its by-products while reinforcing its commitment to sustainable, diversified revenue streams.

The new CMA, alongside an upgraded Marikana Contract, will play a key role in extending the life of Sibanye’s chrome output. Once the existing Marikana Chrome Recovery Plant (CRP) contract expires, operations will transition under the new CMA, enabling Sibanye to capture a greater share of free cash flow generated from chrome recovery. The company expects the revised structure to accelerate chrome delivery volumes by approximately 20 years, significantly enhancing cash flow visibility and operational stability across its South African PGM portfolio. Furthermore, all other Sibanye chrome recovery plants will immediately benefit from the CMA’s value-enhancing provisions, including improved recovery efficiencies and lower operational costs.

Under the agreement, Glencore will provide processing and metallurgical expertise, helping optimise recovery rates and modernise chrome processing infrastructure. These improvements are expected to boost production efficiency, reduce environmental impact, and increase profitability. Additionally, the improved commercial terms will strengthen the economic viability of Sibanye’s brownfield expansion projects, many of which are currently under review for development within its existing PGM mining footprint. CEO Richard Stewart described the new arrangement as a “pivotal step in unlocking long-term value from chrome by-products,” underlining Sibanye’s focus on maximising resource utilisation and ensuring the sustainability of its South African operations.

This collaboration between Sibanye-Stillwater and the Glencore Merafe Venture represents a significant milestone in the evolution of South Africa’s chrome sector. It brings together technical innovation, resource optimisation, and long-term planning in a way that could redefine how chrome by-products are managed within PGM operations. By strengthening the country’s downstream chrome processing capacity, the agreement supports South Africa’s broader objectives of industrial growth, export diversification, and sustainable resource management.

Mini-Glossary

• Chrome Management Agreement (CMA): A structured contract that governs the operation, processing, and commercial distribution of chrome products between partnering entities.
• Chrome Recovery Plant (CRP): A facility designed to extract chrome as a by-product from platinum group metal (PGM) tailings or ore.
• Free Cash Flow: The cash generated by a company after accounting for operational and capital expenditures, representing funds available for reinvestment or distribution.
• Brownfield Expansion: The development or upgrade of existing mining or processing facilities to increase production capacity.
• Ferrochrome: An alloy of iron and chromium used in stainless steel production.
• By-Product Management: The process of extracting and monetising secondary minerals or materials produced during the mining of a primary commodity.