Sibanye-Stillwater and Glencore Expand Chrome Recovery Partnership in South Africa

Sibanye-Stillwater

Agreement Targets Higher Chrome Output and Lower Costs as PGM Prices Slide

Sibanye-Stillwater has expanded its chrome delivery and production partnership with Glencore-Merafe, aiming to boost chrome recovery at its South African operations. The agreement, announced by Merafe Resources, builds on a prior 2011 deal initially struck with Lonmin, which Sibanye acquired in 2019.

Under the updated terms, Glencore-Merafe—a joint venture between Glencore and Merafe Resources—will take over operational control of most of Sibanye-Stillwater's chrome recovery plants (CRPs). This move is expected to streamline chrome recovery processes, increase feed rates, and improve yield efficiency while lowering operational costs.

Chrome Gains Importance as PGM Prices Fall

Chrome ore, a by-product of platinum group metal (PGM) mining, has become increasingly vital to PGM producers amid declining PGM prices. With this partnership, Sibanye-Stillwater aims to strengthen its revenue base by enhancing chrome output.

The updated deal will accelerate deliveries under the original contract and support expanded production. As PGM margins narrow, chrome has emerged as a key contributor to sustaining profitability across Sibanye-Stillwater’s mining portfolio.

Ferro-Chrome Market Pressure Triggers Strategic Review

Despite the focus on growth, Merafe is currently reviewing its ferro-chrome smelting operations due to weak global prices. The firm, which produced 301,000 tonnes of ferro-chrome in 2024, may close certain furnaces to adapt to the challenging market conditions.

Nevertheless, this expanded agreement positions Glencore-Merafe and Sibanye-Stillwater to maximize the value of existing chrome resources. It reflects a broader strategy among miners to diversify revenue streams and reduce exposure to volatile PGM markets.