Sibanye PGM Production Rises in South Africa as US Output Falls

Sibanye

Sibanye PGM production improved in South Africa during the first quarter, but the company’s US mine output weakened because of lower production quality at East Boulder. The mixed result highlights the company’s uneven exposure across primary mining, recycling, zinc and lithium.

Sibanye PGM production in South Africa rose by 2% year on year to 383,241oz of 4E metals, covering platinum, palladium, rhodium and gold. Growth projects supported the increase and helped keep the company on track with its full-year guidance.

Sibanye PGM production in the US moved in the opposite direction. Output of 2E metals, covering platinum and palladium, fell by 5% to 68,386oz, with regular production expected to resume by the end of June.

The company maintained full-year guidance for both regions. South African operations are expected to produce 1.65mn-1.75mn oz, while US operations remain guided at 280,000-300,000oz.

South African Growth Offsets US Mine Weakness

Sibanye’s South African PGM operations remain the stronger side of the portfolio. The 2% increase in first-quarter output shows that ongoing growth projects are helping offset broader pressure across the PGM sector.

This matters because South Africa remains the world’s most important primary PGM supply base. Stable output from large producers supports automotive catalysts, hydrogen technologies, chemicals, electronics and industrial applications.

The US Stillwater operations faced a weaker quarter. Lower production quality at East Boulder reduced output, although Sibanye expects normal production to return by the end of June.

The US decline is important because North American primary PGM supply is limited. Any disruption at Stillwater assets can affect regional availability of palladium and platinum, especially for customers seeking non-Russian and traceable supply.

Recycling helped offset the weaker US mine performance. Sibanye’s US recycled PGM output rose by 50% to 107,597oz, supported by better optimisation of material flows.

That increase reinforces the strategic value of secondary supply. PGM recycling can provide flexible metal units when mine output is uneven, while also supporting lower-carbon and circular supply chains.

Zinc Weakness and Keliber Progress Broaden the Portfolio Story

Sibanye’s Australian Century zinc operation produced 20,000t in the first quarter, down by 25,000t from a year earlier. Above-average rainfall reduced capacity and operating flexibility at the zinc operation.

The decline shows the weather sensitivity of tailings and zinc operations. Heavy rainfall can affect mining rates, processing efficiency, transport and operating continuity.

Century’s weaker output also matters because zinc remains important for galvanizing steel, infrastructure, construction, die casting and industrial manufacturing. Lower production from a major operation can tighten regional supply if weather disruption persists.

Meanwhile, Sibanye’s Keliber lithium project in Finland reached full completion during the first quarter. The first mining blast took place at the Syvajarvi mine in February.

Keliber gives Sibanye a strategic entry into Europe’s lithium supply chain. The project connects the company to battery materials demand and supports Europe’s effort to build more domestic critical mineral capacity.

Sibanye’s portfolio is therefore becoming more diversified. PGMs remain the core earnings and strategic base, but recycling, zinc and lithium all add exposure to different industrial cycles.

The first-quarter results show the benefits and risks of that structure. South African PGMs and US recycling improved, US mine output weakened, zinc suffered weather disruption, and lithium moved closer to future production.

The Metalnomist Commentary

Sibanye’s quarter shows why diversified metals exposure can protect a company from single-asset weakness, but also adds execution complexity. The strongest strategic signal is the rise in recycled PGM output, which could become increasingly valuable as customers seek secure and lower-carbon platinum and palladium supply.

Sibanye-Stillwater PGM Production Falls as Stronger Precious Metals Prices Lift Revenue

Sibanye-Stillwater

Sibanye-Stillwater PGM production declined in 2025, but stronger precious metals prices lifted revenue and earnings across the group. The result shows how price recovery can offset operational pressure in the platinum group metals market, especially when supply remains constrained and downstream demand stays uneven.

The South African mining group reported a 14pc increase in revenue to R129.7bn, equal to about $7.3bn. The improvement came despite lower production from both its South African and US PGM operations. Higher basket prices, especially in the second half of the year, provided the main earnings support.

Sibanye-Stillwater PGM production from its South African operations reached 1.7mn oz of 4E PGM in 2025. This was down by 0.8pc from the previous year. However, the company achieved an average South African 4E basket price of $1,740/oz, up sharply from $1,322/oz in 2024.

Higher PGM Basket Prices Offset Lower Mine Output

Stronger PGM prices helped Sibanye-Stillwater protect profitability despite weaker production volumes. Adjusted earnings before interest, taxes, depreciation, and amortisation at the South African PGM operations rose by 125pc to R16.7bn. This reflects the operating leverage that miners can achieve when prices recover faster than costs increase.

The production decline also highlights the broader challenge facing mature PGM operations. South African mines continue to operate in a difficult environment shaped by cost inflation, ageing assets, electricity risk, and labour intensity. In that context, higher prices are important, but they do not remove the need for disciplined restructuring and productivity gains.

Meanwhile, Sibanye-Stillwater’s US 2E PGM production fell by 33pc year on year. The decline was significant, but stronger palladium prices improved the sales picture. The company achieved an average US 2E basket price of $1,195/oz in 2025, compared with $988/oz a year earlier.

Palladium Trade Action and Battery Metals Add Strategic Context

Palladium remains a strategic factor for Sibanye-Stillwater because the company has direct exposure through its US operations. The company highlighted preliminary US anti-dumping duties on Russian palladium, following petitions filed by Sibanye-Stillwater and the United Steelworkers Union. The move could support domestic and allied palladium producers if it reshapes import economics.

The company’s US operations also returned to profitability after restructuring. This matters because North American palladium supply carries strategic value in a market exposed to Russian material, automotive demand uncertainty, and changing emissions technology. Any policy support that reduces unfair price pressure could improve the outlook for non-Russian producers.

At the same time, Sibanye-Stillwater continues to broaden its portfolio beyond PGMs. Its Australian Century zinc operation produced 101,000t of zinc, up by 22pc on the year. Its Keliber lithium project also advanced toward production as construction neared completion and the first mining blast took place this month.

The Metalnomist Commentary

Sibanye-Stillwater’s 2025 results show that PGMs remain a price-sensitive business where earnings can recover before volumes do. The bigger question is whether stronger palladium and PGM prices can support long-term reinvestment in assets that still face structural cost and demand uncertainty.

PGM Technology Partnership Targets New Demand Beyond Catalytic Converters

Sibanye-Stillwater

The PGM technology partnership between Johnson Matthey, Sibanye-Stillwater, and Valterra Platinum signals a serious push to build new platinum group metals demand beyond traditional auto catalysts. The three companies will work on a multi-year, multi-million research and development programme covering the full PGM basket. The goal is to move new ideas from research to commercialisation. As a result, the PGM technology partnership could become one of the most important demand-side initiatives in the sector.

This matters because platinum group metals demand still depends heavily on catalytic converters for internal combustion engines. That market remains large, but electric vehicles are steadily taking share. Producers and refiners therefore need new end uses that can support long-term balance across platinum, palladium, rhodium, and the wider basket. Therefore, the PGM technology partnership is not just a research collaboration. It is a strategic response to a changing demand structure.

The mix of partners also gives the programme unusual weight. Sibanye-Stillwater and Valterra are major South African mining players, while Johnson Matthey brings refining, recycling, and advanced materials capability. That combination improves the odds that new PGM applications can move beyond lab work and into real industrial markets. Consequently, the PGM technology partnership has more commercial credibility than a typical standalone innovation announcement.

New PGM Applications Could Open Demand in Hydrogen, Electronics, and Advanced Materials

New PGM applications are central to the entire programme. The companies said they will explore uses in clean hydrogen, emissions detection and reduction, electronic materials, and high-performance alloys. These are not fringe categories. They are all large industrial themes with room for higher-value materials adoption. As a result, new PGM applications could help widen the demand base beyond automotive exposure.

Hydrogen is especially important in that context. PGMs already play a role in several hydrogen-related technologies, and deeper commercial penetration could create a more durable growth market. Electronics and advanced materials also matter because they can support more specialized and higher-margin uses. Therefore, the PGM technology partnership is aimed at sectors where technical performance can justify premium metal value.

The emphasis on the full basket is also notable. The programme is not focused on only one metal or one application family. That reflects a broader industry need to improve supply and demand balance across multiple PGMs at the same time. Meanwhile, it suggests the partners are thinking in portfolio terms rather than chasing one headline technology.

PGM Innovation Strategy Reflects a Bigger Industry Shift

PGM innovation strategy is becoming more urgent as the auto market evolves. Around 60pc of global PGM supply still goes into catalytic converters. That share remains important today, but it cannot be the only long-term demand pillar. Producers now need stronger growth channels that can absorb metal units in a more diversified way. Consequently, the PGM technology partnership reflects a much wider strategic shift across the industry.

This also matters for South Africa’s mining sector. Major PGM producers need a healthier long-term demand profile if they want more stable pricing and investment conditions. New applications can help support that by reducing dependence on a single dominant sector. Therefore, PGM innovation strategy is not just about technology leadership. It is also about future market resilience.

The comment from Sibanye-Stillwater’s chief executive makes that clear. The focus is on the entire basket and on creating a better supply-demand balance. That is ultimately the core commercial purpose of the programme. As a result, the PGM technology partnership should be viewed as a demand-defense strategy as much as an innovation platform.

The Metalnomist Commentary

This partnership matters because the PGM industry can no longer rely on catalytic converters alone to carry long-term demand. The most interesting part is not that the companies announced research. It is that miners, refiners, and recyclers are now aligning around commercialization. If this expands with more partners, it could become a real turning point for PGM demand strategy.

Finland lithium refinery ramp-up: SBSW moves Keliber into staged start-up

Sibanye-Stillwater

The Finland lithium refinery ramp-up is moving into its final construction phase at Sibanye-Stillwater’s Keliber project. SBSW expects to finish the build in the first quarter and then start a staged ramp-up. The company will align the Finland lithium refinery ramp-up with mining, concentrator, and refinery readiness.

Capital spending remains heavy, with €783mn required to complete construction. SBSW plans 15,000t per year of battery-grade lithium hydroxide for about 18 years. That output supports European battery supply chains and reduces exposure to imported chemicals.

Keliber’s integrated mine-to-refinery build in Finland

Keliber brings an integrated footprint that links deposits, a concentrator, and a refinery in Finland. The project includes seven spodumene exploration or mining properties, plus processing assets. Central Ostrobothnia provides the spodumene feedstock for the refinery circuit.

A staged start reduces technical risk, but it can stretch timelines if commissioning surprises appear. Therefore, investors will track early recoveries, reagent use, and lithium hydroxide quality. Operators often tune crushing, flotation, and conversion steps before they reach nameplate performance.

EU strategic status and price-linked ramp decisions

EU strategic status adds policy support for the Finland lithium refinery ramp-up. The EU Critical Raw Materials Act classifies Keliber as a strategic project. Meanwhile, strategic labels can speed permitting, financing access, and downstream partnership talks.

Lithium prices will shape how fast SBSW funds refinery ramp-up costs. The company plans to defer some ramp spending when market pricing weakens. As a result, the project can preserve cash while keeping long-term capacity optionality.

The Metalnomist Commentary

Keliber can become a benchmark EU lithium hydroxide asset if it executes the ramp cleanly. However, deferring ramp costs creates a trade-off between balance-sheet discipline and market-share timing. The winners will secure offtakes before the next European battery expansion wave.

Sibanye Appian Brazil mines settlement closes high-stakes nickel dispute

Sibanye Stillwater

Sibanye Appian Brazil mines settlement ends a three-year legal battle over major nickel and copper assets in Brazil. The $215mn payment closes Sibanye Stillwater’s failed acquisition of the Santa Rita nickel and Serrote copper mines. As a result, the case now stands as a key precedent for mining M&A risk and contract enforcement.

Sibanye Appian Brazil mines settlement follows the company’s decision to terminate a $1bn deal signed in 2021. The agreement covered Appian’s Atlantic Nickel and MVV businesses, which own Santa Rita and Serrote. However, Sibanye walked away in January 2022, citing a “geotechnical event” at Santa Rita as a material adverse effect. The UK High Court later ruled that the incident did not meet this threshold, leaving Sibanye liable for damages.

Santa Rita is one of the world’s largest open-pit nickel sulphide operations with a 6.5mn t/yr plant. Serrote is a sizeable copper-gold mine designed to produce about 20,000 t/yr of copper concentrate from a 4.1mn t/yr plant. Together, these assets would have anchored Sibanye’s diversification into battery metals. Instead, the Sibanye Appian Brazil mines settlement now replaces the growth story with a sizeable cash cost and reputational hit.

Legal defeat underscores limits of “material adverse effect” claims

The dispute highlights how courts interpret material adverse effect clauses in mining deals. Judges expect buyers to understand normal operational and geological risks before signing. Therefore, routine geotechnical issues rarely justify tearing up a $1bn transaction. The High Court found that Santa Rita’s event did not fundamentally damage the mine’s economics or long-term viability.

As a result, the ruling signals tougher standards for future mining M&A terminations. Buyers can no longer rely on moderate technical issues or short-term volatility to escape deals. Instead, they must show truly exceptional damage to asset value or performance. This outcome will likely push acquirers to tighten due diligence, refine risk pricing and draft narrower escape clauses. It also reinforces sellers’ confidence when defending contracts in court.

For Sibanye, the settlement removes a major legal overhang and ongoing litigation expense. However, it also crystallises a $215mn cash outflow with no asset in return. Investors will scrutinise how this affects balance-sheet flexibility, especially as the group still targets exposure to battery metals. Appian, meanwhile, secures compensation and can refocus on optimising Santa Rita and Serrote or preparing new exit options.

Strategic lessons for mining and battery metals M&A

The Sibanye Appian Brazil mines settlement sends a clear signal across the battery metals value chain. Strategic diversification into nickel and copper remains vital for miners exposed to PGMs or coal. However, failed execution now carries higher legal and financial risk. Mining companies must match bold decarbonisation narratives with disciplined transaction structures and contingency planning.

For prospective buyers of nickel and copper assets, the case highlights three core lessons. First, conduct deeper technical due diligence around pit stability, tailings and resource models. Second, align contract language with realistic risk scenarios, not best-case assumptions. Third, maintain transparent communication with counterparties when operational issues emerge. These steps can reduce the odds of costly courtroom battles.

Downstream, stainless and battery supply-chain players will watch how Santa Rita and Serrote evolve under Appian’s control. Any future sale process will likely embed stricter protections for both buyer and seller. Over time, this precedent may raise transaction costs but also improve deal quality in the global energy-transition metals market.

The Metalnomist Commentary

This settlement underlines how aggressively courts now police “material adverse effect” claims in mining M&A. Buyers that over-promise on battery metals diversification, then attempt to reverse course, face growing legal and reputational consequences. The next phase of nickel and copper deal-making will favor disciplined acquirers who price risk accurately and honour their contracts.

Sibanye-Stillwater Glencore chrome agreements aim to unlock PGM by-product value

Sibanye-Stillwater

The Sibanye-Stillwater Glencore chrome agreements will reshape chrome by-product economics at South African PGM operations. The chrome management agreements, effective 1 November, align Sibanye-Stillwater with Glencore-Merafe to maximise chrome recovery from existing plants. Together, the partners will target higher throughput, better recoveries and lower operating costs across chrome recovery plants tied to PGM processing.

These Sibanye-Stillwater Glencore chrome agreements also accelerate contracted chrome delivery timelines by roughly 20 years. As a result, Sibanye-Stillwater can monetise chrome streams sooner and stabilise cash flow during a period of weak PGM prices. Meanwhile, Glencore-Merafe strengthens its feed base for ferro-chrome production, leveraging its established marketing and processing platform.

Chrome recovery plants move to centre stage

Chrome recovery plants sit at the core of the Sibanye-Stillwater Glencore chrome agreements. The partners will prioritise the Marikana chrome recovery plant, where higher feed and improved recoveries should materially lift output. Other Sibanye-Stillwater CRPs will also gain value-enhancing provisions, ensuring a portfolio-wide uplift rather than a single-site optimisation.

Glencore will apply its processing expertise to optimise chrome production throughout Sibanye-Stillwater’s operations. Therefore, the agreements should reduce unit costs and improve overall plant efficiency. In addition, Glencore’s growing operational control over most CRPs will streamline decision-making and shorten response times to market signals.

Chrome by-products support South African PGM mine life

The Sibanye-Stillwater Glencore chrome agreements aim to support brownfield PGM projects that currently face price pressure. Low PGM prices and relatively stronger chrome ore prices have already pushed South African PGM producers to rely more on chrome by-products. As a result, improved chrome economics can directly influence mine viability and capital allocation decisions.

Sibanye-Stillwater expects the transaction to underpin the economics of its South African PGM operations. Higher-margin chrome output can offset weaker PGM revenue and stabilise earnings across the cycle. Meanwhile, Glencore-Merafe secures long-term access to chrome units, reinforcing its ferro-chrome position in a structurally constrained energy and logistics environment.

The Metalnomist Commentary

These agreements highlight how by-products like chrome can become strategic lifelines for PGM producers in a low-price environment. If execution delivers the promised 20-year acceleration of deliveries, Sibanye-Stillwater could gain a meaningful buffer for future brownfield investments. For Glencore-Merafe, tighter integration with upstream CRPs strengthens control over feedstock in a market where cost and reliability increasingly trump volume growth.

Sibanye Stillwater Metallix acquisition boosts US precious metals recycling

Sibanye Stillwater

Sibanye Stillwater Metallix acquisition boosts US precious metals recycling

Sibanye Stillwater Metallix acquisition will add scale to US recycling. The $105mn deal secures Metallix Refining’s North Carolina assets. The Sibanye Stillwater Metallix acquisition advances urban mining and awaits approvals to close in 3Q 2025. The move complements Sibanye’s US operations in Montana and Pennsylvania.

Why Metallix matters to Sibanye

Metallix operates two precious-metal facilities in Greenville, North Carolina. The plants serve customers in the US, UK, and South Korea. They recover gold, silver, and PGMs from industrial waste streams. Sources include catalytic converters, semiconductors, electroplating, and automotive scrap. The company processed 4.2mn lbs of feed in 2024. It produced 21,000oz gold and 874,000oz silver. It also produced 48,000oz palladium and 48,000oz platinum. Output included 4,000oz rhodium, 3,000oz iridium, and 263,000lb copper.

Metallix Refining

Strategic fit and expected synergies

Sibanye Stillwater Metallix acquisition strengthens sourcing and logistics. The company expects broader reach and optimized internal flows. It also deepens relationships across PGM and gold recycling. Management aims to expand urban mining with higher US capacity. The acquisition adds industrial feed that supports circular supply chains.

Sibanye will integrate Metallix with its Montana and Pennsylvania sites. As a result, the group can balance feed quality and throughput. The buyer highlighted improved material sourcing as a priority. Closing remains subject to regulatory approvals in the US. The transaction is targeted for the third quarter of 2025.

The Metalnomist Commentary

This deal extends Sibanye’s PGM and gold footprint into high-quality US industrial scrap. With tight primary PGM supply, diversified recycling becomes strategic insurance. Expect the combined platform to compete aggressively for catalytic and semiconductor residues.

Keliber Lithium Project Capex Rises 17% as Sibanye Builds Strategic EU Supply Chain

Keliber

Keliber’s cost increase highlights challenges of non-Chinese battery chain development

Keliber lithium project capex has risen by 17% to €783 million ($882 million), according to South Africa–based Sibanye Stillwater. The Keliber project, located in Finland, is a fully integrated mine-to-hydroxide operation targeting up to 15,000 tonnes per year of battery-grade lithium hydroxide. The revised capital expenditure includes full development, construction, and refinery commissioning.

EU backs project with strategic designation and green financing

The European Commission designated Keliber as a “strategic project” under the Critical Raw Materials Act, alongside Sibanye’s GalliCam initiative. The project secured up to €500 million in green financing, including a €150 million loan from the European Investment Bank. These efforts reflect the EU’s push to localize lithium processing and reduce dependency on China in the battery materials supply chain.

Commissioning on track for 2026 amid broader EU battery ambitions

Sibanye confirmed that construction of the Keliber refinery is nearing completion, with hot commissioning scheduled for Q1 2026. Meanwhile, its GalliCam project—focused on producing precursor cathode active materials—will complete its pre-feasibility study by Q4 2025. The Keliber lithium project capex update highlights rising costs in Western battery investments, driven by stricter ESG, permitting, and labor frameworks compared to China.

The Metalnomist Commentary

The Keliber cost increase underscores the financial intensity of reshoring critical minerals infrastructure in Europe. However, EU-backed strategic designation and financing signal strong institutional support for supply chain sovereignty in battery materials.

Baiyin Nonferrous Acquires Brazil’s MVV Copper Asset from Appian

Mineracao Vale Verde (MVV)

Baiyin Strengthens Global Copper Portfolio with Serrote Acquisition

China’s Baiyin Nonferrous has acquired Mineracao Vale Verde (MVV) in Brazil for $420mn from Appian Capital Advisory. MVV owns the Serrote copper and gold mine, a greenfield project in Alagoas, which began production in May 2021. In 2024, MVV produced 18,300 tonnes of copper, solidifying its status as a strategic mid-tier producer.

Failed Bids Marked the Asset’s Path Before Baiyin’s Success

South African mining firm Sibanye Stillwater initially agreed to purchase MVV in 2021 but withdrew in early 2022. Another buyer, ACG Acquisition, a London-listed SPAC, attempted a deal in 2023, which also fell through. Appian ultimately found a reliable buyer in Baiyin, a Chinese state-owned firm eager to secure critical metals abroad.

China Expands Its Mining Footprint in Latin America

Baiyin’s purchase of MVV continues China’s trend of securing base metal assets in resource-rich Latin America. As global demand for copper rises, Chinese firms are accelerating M&A activity to support domestic energy transition goals. Meanwhile, Appian’s exit signals a rebalancing of private equity portfolios amid shifting global mining dynamics.

The Metalnomist Commentary

Baiyin Nonferrous’ acquisition of MVV highlights the strategic pivot by Chinese state firms toward overseas copper consolidation. With failed bids behind it, Serrote now enters a new chapter under a well-capitalized buyer. As the global energy transition intensifies, these transactions will become more frequent, reshaping ownership in key mineral corridors like South America.

Russian PGMs Continue Flowing to Europe via East Asia Despite Direct Import Declines

Russian PGMs Mining

Hong Kong and China Re-export Platinum and Palladium to Europe as Shortages Persist and Prices Stay Depressed

Russian Metal Flows Persist Despite Western Sanctions

Russian-origin platinum group metals (PGMs) continued entering European markets in 2024, despite significant declines in direct exports. Instead, the metal flowed indirectly via Hong Kong and China, both of which ramped up PGM exports after stockpiling Russian volumes in 2023–2024.

The UK, for instance, imported a quarter of Hong Kong’s 857,379 oz of platinum in the first eleven months of 2024—up 500% year-on-year, despite zero direct imports from Russia for two consecutive years.

Re-export Surge Undercuts African Suppliers

As the UK increased platinum imports via Asia, its platinum purchases from South Africa—the world’s largest platinum producer—fell 4% year-on-year. Market participants say rebranded Russian metal, sold at a discount, is undercutting South African supply in Europe.

Meanwhile, Switzerland absorbed most of Hong Kong’s 121,682 oz of palladium exports in 2024, sharply up from prior years. China’s palladium exports also jumped 87%, with half shipped to Switzerland, reinforcing the growing role of East Asia as a trade intermediary.

Global Deficit Grows as Output Shrinks

With supply tight, the EU and UK may continue to rely on these indirect Russian flows. According to the World Platinum Investment Council, platinum and palladium demand will remain robust through 2025, even as global production falls.

Non-Russian producers are scaling back: Sibanye-Stillwater announced job cuts at its U.S. palladium mine, and Impala Platinum may shut its Canadian Lac des Iles site early. Despite tightness, spot prices remain weak, limiting producer incentives to boost output.

Europe's Strategic Dilemma in PGM Supply

Palladium prices have plunged 57% in 2023, followed by another 36% drop in 2024, averaging $998/oz, per Johnson Matthey data. Although sanctions remain in place, Europe’s automotive and industrial sectors have few alternatives for essential PGMs.

Market insiders expect indirect Russian-origin PGM flows into Europe to persist in the medium term, particularly as Asia profits from discounted access. The gap between policy and procurement realities is widening, reinforcing the fragility of Europe’s critical metals strategy.

Sibanye-Stillwater Withdraws from US Rhyolite Ridge Lithium Project Over Financial Viability Concerns

Sibanye-Stillwater

South African Miner Cancels $490 Million Investment After Reassessing Economic Return of Nevada-Based Lithium-Boron Site

Sibanye Ends US Lithium Ambitions, Exits Ioneer JV Over Project Economics

South African mining company Sibanye-Stillwater has announced it will not proceed with its planned investment in the Rhyolite Ridge Lithium-Boron Project in Nevada. The decision follows a review of updated technical and financial information provided by joint venture partner Ioneer Ltd., based in Australia.

Sibanye stated that the project does not meet its internal rate of return (IRR) thresholds based on prudent lithium pricing assumptions. As a result, the company has scrapped plans to invest $490 million for a 50% equity stake in the lithium project, which was originally signed in 2021.

Rhyolite Ridge Targeted U.S. Lithium Supply Boost

The Rhyolite Ridge project had aimed to produce 20,588 tonnes per year of lithium carbonate and 21,951 tonnes of lithium hydroxide, according to a 2020 definitive feasibility study. Positioned as a major supplier to the U.S. electric vehicle and energy storage markets, the project was viewed as critical to U.S. battery materials independence.

However, rising costs, permitting delays, and shifting market dynamics have pressured several lithium developers to reassess project economics, including those with U.S. strategic significance.

Market Implications and Next Steps for Ioneer

Sibanye’s exit could pose a setback to the U.S. lithium supply chain, especially as automakers and battery makers seek domestic sources. Ioneer has not yet commented on how it will move forward with project financing or timelines. The move highlights broader investor caution in lithium projects amid price volatility and capital intensity.

As lithium markets remain dynamic, miners like Sibanye are recalibrating strategies, prioritizing returns over expansion in a saturated development pipeline.

Sibanye-Stillwater Sees Mixed PGM Output in 2024: US Down, Africa Up

Sibanye-Stillwater

US Operations Cut Output as Africa and Zimbabwe Deliver Gains

Restructuring and Metal Prices Shape Production Strategy

Sibanye-Stillwater, the South African platinum group metals (PGM) major, reported a slight decline in US PGM output in 2024 but growth in South Africa and Zimbabwe. The company’s US Stillwater and East Boulder mines produced 425,842oz of 2E PGMs for the year, down less than 1% year-on-year. In the last six months of 2024, US production dropped by 15.4% as Sibanye focused on lowering costs amid challenging metal prices.

Cost Management and US Restructuring Drive Changes

The average 2E PGM basket price in the US fell below the all-in sustaining cost, prompting Sibanye to restructure. The company put the Stillwater West mine on care and maintenance, while East Boulder and Stillwater East mines saw reduced output. Despite lower mine volumes, PGM recycling at the Columbus metallurgical complex rose by 2% to 316,470oz for 2024, including a 9.2% increase in the second half.

African and Australian Operations Report Output Increases

In South Africa and Zimbabwe, Sibanye’s 4E PGM production rose by 4.2% in H2 2024 and 4% for the full year, reaching 1.74 million ounces. Key operations are located in the Bushveld Complex, Kroondal, Rustenburg, Marikana, and Mimosa. Beyond PGMs, nickel output at the Sandouville refinery in France climbed 8.1% to 7,705 tonnes, and zinc production at Australia’s Century site increased by 8% to 82,000 tonnes.

Sibanye’s regional flexibility, ongoing cost discipline, and diversified asset base position the company to navigate volatile PGM prices and evolving market conditions.

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.

Sibanye-Stillwater and Glencore-Merafe Expand Chrome Partnership to Boost South African Output

Merafe Resources

New agreement strengthens chrome recovery and output efficiency amid weaker PGM and ferro-chrome markets

Chrome Deal Expansion Aims to Optimize South African Production

Sibanye-Stillwater has expanded its chrome delivery agreement with Glencore-Merafe, targeting increased chrome production from its South African operations. The updated agreement builds upon a 2011 contract originally formed with Lonmin, which Sibanye-Stillwater acquired in 2019. Glencore-Merafe, a joint venture between Glencore and Merafe Resources, will now take over operational control of most of Sibanye-Stillwater's chrome recovery plants (CRPs).

The deal is designed to accelerate chrome deliveries while increasing overall production volumes. Chrome ore, a by-product of platinum group metals (PGM) mining, is playing a larger role in producer revenues due to declining PGM prices. The new arrangement aims to improve plant feed, enhance recovery, and lower operating costs across Sibanye-Stillwater’s CRP network.

Ferro-Chrome Pressures Prompt Strategic Collaboration

Merafe Resources reported 301,000 tonnes of ferro-chrome output in 2024 but faces pricing challenges in the current market. As part of a strategic review announced in February, Merafe may close selected furnaces due to sustained low ferro-chrome prices. This chrome partnership with Sibanye-Stillwater presents an opportunity to mitigate margin pressure through operational efficiency and increased recovery of chrome by-product material.

The chrome produced from Sibanye-Stillwater’s PGM operations feeds directly into Glencore-Merafe’s ferro-chrome value chain, making the partnership critical for long-term supply reliability. Enhanced chrome recovery is expected to bring economic benefits to both parties and reduce resource waste.

As global stainless steel demand evolves, chrome and ferro-chrome remain vital to the supply chain. The success of this partnership may influence similar strategies across the Southern African region, where PGM and chrome operations are closely intertwined.

Sibanye-Stillwater Suspends Century Zinc Operations in Australia Following Bushfire Damage

Sibanye-Stillwater

South African mining giant Sibanye-Stillwater has announced the temporary suspension of its operations at the Century Zinc Mine in Queensland, Australia, due to damage caused by a regional bushfire. The company expects operations to remain halted until 16 November as extensive repairs are conducted.

The bushfire resulted in the destruction of critical surface piping infrastructure, including feed and water lines that connect the hydraulic mining system to the processing plant, as well as other essential service lines. Despite these setbacks, primary infrastructure such as the processing plant, hydro mine, underground slurry pipeline, airport, and camp facilities were successfully protected from fire damage.

Impact on Zinc Production

The suspension of operations is expected to result in a significant reduction in fourth-quarter zinc metal production. Sibanye-Stillwater estimates a loss of approximately 9,680 tonnes, impacting its ability to meet the 2023 production target of 87,000-100,000 tonnes of payable zinc.

In the first half of 2023, the Century Zinc Mine produced 42,000 tonnes of zinc, reaching the lower end of the company’s full-year guidance. Production earlier this year was already affected by heavy rains in the first quarter.

Looking Ahead

Sibanye-Stillwater's commitment to restoring operations swiftly highlights the challenges posed by natural disasters in the mining sector. With repairs underway and operations expected to resume mid-November, the company aims to mitigate further impacts on its annual production goals.

About Century Zinc Mine

The Century Zinc Mine is one of Australia's significant zinc producers, with its operations contributing significantly to the global zinc market. Owned by Sibanye-Stillwater, the mine employs advanced hydraulic mining techniques to extract ore for processing.

Stay tuned to The Metalnomist for updates on this developing story and other insights into the metals industry.

Sibanye-Stillwater Shifts Focus at Sandouville Nickel Refinery Amid European Battery Market Push

Sibanye-Stillwater, a prominent South African multi-metals mining group, announced yesterday its decision to terminate a key supply agreement at its Sandouville nickel refinery in France as part of a strategic shift to repurpose the facility. The refinery, previously focused on nickel sulphate production, will now be geared towards producing precursor cathode active material (pCAM) for the burgeoning European battery market. The termination of the supply deal is expected to be finalized by December 31, 2024.

The decision comes with significant financial implications, as Sibanye-Stillwater anticipates incurring costs of $37 million due to the termination. Despite this, the company plans to continue refining from inventory and maintaining sales through the first quarter of 2025.

The Sandouville refinery, acquired from Eramet in 2022, is undergoing a transformation driven by the GalliCam project, which focuses on shifting from nickel sulphate to pCAM production. This pivot is based on positive results from a scoping study, though a final decision will hinge on the outcomes of an ongoing feasibility study. Central to this transformation is the planned use of mixed hydroxide precipitate (MHP) in a chloride medium, replacing the current use of nickel matte. Sibanye-Stillwater has emphasized that this new process will streamline production, reduce energy consumption, lower carbon emissions, and generate fewer waste products. The company filed a patent application for the chloride-MHP process in July.

A small-scale pCAM precipitation pilot is currently underway at the Sandouville site, with testing set to begin by the end of the third quarter of this year. This initiative marks a significant step in Sibanye-Stillwater’s strategy to position itself as a key player in the European battery supply chain.