Bushveld Mineral

South African Output Cuts to Boost China's Vanadium-Nitrogen Exports

Rising Exports Driven by Lower South African Production and Strong US Demand

China’s vanadium-nitrogen exports are expected to see significant growth in 2025, primarily due to output cuts from a major South African producer, increasing demand from the US, and strong export interest from Chinese producers. Market participants anticipate a boost in global vanadium-nitrogen trade, benefiting China’s export numbers.

Impact of South African Output Cuts on Global Vanadium-Nitrogen Supply

South African vanadium-nitrogen production has been notably impacted by ongoing equipment maintenance at Bushveld Minerals Vametco plant. From mid-December to March 2025, the plant will operate at reduced capacity due to a cash shortage. In 2024, Bushveld’s production fell by 19%, amounting to 1,387 tonnes. This reduction in South African output is expected to continue in 2025, with the producer operating at low run rates due to negative profit margins. Consequently, China is positioned to capitalize on these cuts by increasing its exports.

Global vanadium-nitrogen alloy production is heavily concentrated in China and South Africa, with other countries lacking the necessary technology due to intellectual property restrictions. While European and US steel mills often prefer using ferro-vanadium (80% grade) over vanadium-nitrogen, China’s export increase in vanadium-nitrogen reflects changing dynamics in the alloy market.

Surge in China’s Vanadium-Nitrogen Exports and US Market Demand

China’s vanadium-nitrogen exports more than doubled in 2024, reaching 2,523 tonnes, up from 945 tonnes in 2023. This growth can be attributed to South Africa’s lower output and China’s expanded export activities. Notably, in December 2024, China’s vanadium-nitrogen exports surged five-fold to 377 tonnes, compared to just 67 tonnes a year earlier.

The US was the largest buyer of Chinese vanadium-nitrogen in 2024, importing 892 tonnes, more than double the 335 tonnes purchased in 2023. Canada also saw a dramatic increase in imports, with 323 tonnes imported, a more than five-fold rise from 60 tonnes in 2023. India’s demand also increased by 69%, reaching 317 tonnes in 2024. The US demand for vanadium-nitrogen is expected to continue to rise, as the US government, under President Trump, has pledged to boost domestic construction activities, which will likely increase the demand for steel alloys.

Export Prices and Market Dynamics

Chinese export prices for vanadium-nitrogen are currently in the range of $20.30 to $21 per kilogram, lower than European prices of $23.80 to $24.20 per kilogram. Chinese smelters are more inclined to sell to overseas markets to address domestic oversupply issues. In 2024, China produced 41,500 tonnes of vanadium-nitrogen, surpassing domestic steel mills' consumption of 34,800 tonnes. However, some alloy smelters reduced production from 2023 levels due to negative profit margins and weaker steel demand.

ReElement South African Antimony Contract Extension Strengthens Defense Supply Chain

ReElement

ReElement South African antimony contract received a significant extension as American Resources and its subsidiary ReElement Technologies expanded their existing five-year antimony agreement to ten years with an undisclosed South African mineral supplier. The ReElement South African antimony contract extension positions the US company to process 500 metric tonnes monthly of stibnite ore initially, with expected revenues of at least $29 million annually from contracted volumes, addressing critical supply chain vulnerabilities following China's antimony export restrictions.

Strategic Timing Capitalizes on Chinese Export Restrictions

ReElement South African antimony contract expansion comes at a critical juncture following China's December 2024 ban on antimony exports to the United States, alongside germanium and gallium restrictions. The partnership initially targets 1,000 metric tonnes per month of antimony-bearing ore with potential for significant volume expansion based on market demand and offtake agreements. ReElement confirmed the ore quality exceeds 50% antimony concentration, indicating high-grade material suitable for defense and commercial applications.

Meanwhile, ReElement demonstrated advanced refining capabilities achieving greater than 99.7% pure antimony(III) sulfide from antimony ore at its central Indiana facilities. The company will process stibnite ore into ultra-pure antimony(III) sulfide or antimony(III) oxide using proprietary refining technology. These compounds serve critical applications in ammunition production, missile manufacturing, flame retardants, batteries, and solar panels across defense and commercial sectors.

Market Fundamentals Support Long-Term Growth Strategy

However, the global antimony(III) oxide market provides substantial growth opportunities with 2023 valuations reaching approximately $852 million. Market analysts project compound annual growth rates of 4.9% through 2034, potentially reaching $1.43 billion total market value. Antimony trisulfide applications in military ammunition and antimony trioxide usage in flame retardants drive sustained demand across defense and commercial markets.

Therefore, the ten-year agreement with automatic renewal provisions supports long-term supply agreements while generating stable revenue streams for ReElement's operations. Initial tolling revenues from the first phase are projected to exceed $29 million annually, with substantial growth potential aligned with rising domestic demand for critical minerals. The extended contract duration delivers enhanced value for all stakeholders including commercial and defense customers requiring secure antimony supplies.

Domestic Processing Capabilities Address National Security Priorities

Furthermore, ReElement's antimony refining expansion aligns with broader US critical minerals supply chain security initiatives. The company operates as part of American Resources Corporation's integrated approach to critical mineral processing, focusing on rare earth elements, lithium, and now antimony refining capabilities. ReElement's Marion, Indiana facility provides the foundation for scaling antimony operations while evaluating additional domestic and international processing sites.

As a result, the partnership addresses urgent national security requirements for domestically produced antimony compounds essential to defense applications. Mark Jensen, CEO of American Resources and ReElement, emphasized the strategic importance: "China's recent ban on exports of antimony, germanium and gallium accelerated this opportunity, allowing us to showcase the versatility, scalability and flexibility of our technology on a global scale - filling the supply gap now present in the United States and other allied nations."

The Metalnomist Commentary

ReElement's antimony contract extension exemplifies how US critical minerals companies capitalize on Chinese export restrictions to establish alternative supply chains, particularly important given antimony's essential role in defense applications where supply security outweighs cost considerations. The partnership's focus on high-grade South African ore combined with domestic processing capabilities creates a vertically integrated approach that addresses both economic and national security objectives in the evolving critical minerals landscape.

Most South African Mineral Exports to US Avoid Tariff Impact

South African Mineral Mining

PGMs, Gold, and Titanium Spared in Latest US Tariff Round

Most of South Africa’s mineral exports to the US, including platinum group metals (PGMs), have been exempted from new US tariffs. US President Donald Trump’s 2 April tariff announcement excluded PGMs, gold, manganese, titanium, chrome, and coal from the list of affected imports.

These exemptions are significant, as PGMs accounted for 76% of the R65.3 billion ($3.4 billion) in mineral and precious metal exports from South Africa to the US in 2024. However, iron ore and diamonds from South Africa will be subject to a 30% tariff, potentially straining trade ties and impacting specific sectors.

Auto Tariffs Threaten Downstream PGM Demand

A separate 25% tariff on US vehicle imports came into effect on 6 June, with auto parts tariffs set for 3 May. According to the Minerals Council South Africa (MCSA), these tariffs may reduce US auto demand, which in turn could lower PGM consumption.

PGMs—especially platinum, palladium, and rhodium—are essential in autocatalysts that reduce vehicle emissions. Lower car production would decrease catalyst demand, causing short-term price volatility in these critical metals.

Still, the MCSA remains optimistic about the long-term demand outlook for PGMs, citing structural demand drivers in clean mobility and hydrogen.

Limited Retaliation Options for South Africa

Despite the exemptions, broader trade tensions could still hurt South Africa’s mining sector. South Africa ships 7% of its total exports to the US, while accounting for just 0.25% of US imports—a disparity that limits its ability to retaliate.

Think tank Trade and Industrial Policy Strategies emphasized the need for diversification, urging South African exporters to find alternative markets. With the global economy under pressure from rising trade barriers, the ripple effect could dampen overall commodity demand and GDP growth.

The Metalnomist Commentary

The exemptions granted to South Africa’s key mineral exports show strategic prioritization by the US to maintain critical supply chains. Yet, the indirect consequences—especially in sectors like automotive and high-tech—may eventually flow back to impact even exempted metals. The situation reinforces the need for South Africa to accelerate market diversification and downstream value-add strategies in mining.

South Africa’s Mineral Exports to the US Mostly Exempt from Tariffs

South Africa Minerals

Key South African Minerals, Including PGMs, Escape New US Tariffs Amid Trade Tensions

South Africa’s mineral exports to the United States, including valuable platinum group metals (PGMs), have been largely exempted from the latest round of US import tariffs. President Donald Trump's announcement on April 2, 2025, introduced reciprocal tariffs on a variety of goods, but crucial mineral exports such as PGMs, gold, manganese, titanium, chrome, and coal will not be subject to additional duties. However, some South African exports, such as iron ore and diamonds, will face a 30% tariff.

Impact of Tariffs on South Africa’s Economy

In 2024, South Africa exported 65.3 billion rand ($3.4 billion) worth of mineral products and precious metals to the US, with PGMs accounting for 76% of the total value. Despite the tariff exclusions on key minerals, other sectors, particularly the automotive industry, are expected to face significant economic impacts. The Minerals Council South Africa (MCSA) has warned that the new tariffs on iron ore and diamonds will hurt the country’s economy, particularly its automotive manufacturing sector.

Additionally, a separate 25% tariff on all US imports of cars and trucks, which took effect on March 26, 2025, is expected to reduce demand for automobiles in the US. This, in turn, will affect PGMs, as platinum, palladium, and rhodium are critical for the production of autocatalysts used to reduce vehicle exhaust emissions. Slowing car sales will result in reduced demand for PGMs, leading to potential price volatility in the near term.

Long-Term Outlook for PGMs

Despite these short-term concerns, the MCSA remains optimistic about the long-term outlook for PGMs. Although current market conditions may cause fluctuations in prices, the demand for PGMs is expected to remain strong over time. However, the broader economic challenges posed by these tariffs—particularly their potential impact on global growth—are concerning for the entire South African mining industry.

South Africa exports 7% of its goods to the US, a relatively small share in terms of total US imports (0.25%). Despite this, the country has limited capacity to retaliate against these tariffs. Experts suggest that South African exporters will need to explore alternative markets and enhance collaborative efforts to mitigate the impact of these tariffs.

EU CBAM Threatens to Halve Value of South African Aluminium Exports

EU CBAM

Hulamin Warns of Severe Economic Hit Without Decarbonisation Measures

High Scope 2 Emissions Pose Greatest Risk Amid Transition to Green Trade Standards

South African aluminium exports to the European Union could lose over 50% of their value under the EU’s Carbon Border Adjustment Mechanism (CBAM), warns Hulamin, the country’s leading aluminium manufacturer. The policy, which begins full enforcement in 2026, targets the embedded greenhouse gas (GHG) emissions of imported goods, making energy-intensive products particularly vulnerable.

CBAM Set to Undercut South African Aluminium Pricing

Hulamin’s environmental sustainability head Hendrik de Villiers stated that South African aluminium typically carries an emissions intensity of around 18t CO₂e per tonne. With a projected levy of €80 per tonne of CO₂e, this translates to €1,440 per tonne of aluminium exported — over 50% of its market value, assuming an LME price of €2,500/t.

By 2034, CBAM will apply to both Scope 1 (direct) and Scope 2 (indirect) emissions. The latter, largely tied to South Africa’s coal-fired electricity grid, poses the most significant risk to exporters. As of 2023, the EU accounted for 35% of South Africa’s aluminium exports, highlighting the economic stakes.

Mitigation Strategies: Renewables, Carbon Tax, and Grid Reform

To reduce exposure to CBAM penalties, De Villiers proposed a multi-pronged strategy. First, aluminium producers must increase energy efficiency and integrate renewable energy into their operations. However, due to South Africa’s grid structure, this cannot be achieved without national infrastructure reform.

Second, De Villiers suggested aligning the country’s carbon tax — currently R134/t CO₂e (around $7) and targeting $30 by 2030 — with CBAM. By using the tax to fund decarbonisation, the country could both retain revenue and offset CBAM costs, as EU regulations allow for recognition of domestic carbon pricing.

CBAM’s full enforcement from January 2026 introduces a new global trade reality for emissions-heavy economies. As South Africa ranks as the 15th largest GHG emitter, and 80% of its power comes from coal, aluminium producers must adapt quickly to preserve export competitiveness in a greener global economy.

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 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.

Platinum Prices Rise on Market Deficit

Platinum

Platinum prices rise on market deficit as speculation and tight supply collide. Platinum prices rise on market deficit after gold and silver surged. As a result, investors refocused on fundamentals while South African mine output stayed constrained.

Liquidity, tariffs, and China shape the rally

Platinum prices rise on market deficit and stronger cross-metal sentiment. Johnson Matthey assessed platinum at $1,608/t on 29 September. Prices jumped 15pc since 19 September and 72pc year to date. However, macro drivers also mattered as the Fed signaled rate cuts.

Platinum trade liquidity spiked in early 2025 on tariff speculation. Over 500,000oz moved into Nymex inventories by early April, Heraeus reported. Inventories then whipsawed as stocks drew down and rebuilt. Meanwhile, Chinese investment and jewellery demand strengthened. More than 30 jewellery makers entered platinum this year from fewer than 10.

Third straight deficit underpins structural support

Tight mine supply magnified the price response. South African platinum output fell 10pc year on year in the first quarter. Producers also closed shafts and delayed projects after weak PGM basket prices. Therefore, above-ground stocks continued to shrink, heightening volatility.

The WPIC expects a third consecutive deficit in 2025 of about 850,000oz. Market participants still see robust industrial demand and auto substitution. Battery-electric growth tempers catalysts, but platinum use remains resilient.

Near-term demand hinges on China’s Golden Week retail sales. If jewellery inventories fail to clear, metal could be remelted. That would return units to market and potentially ease price pressure. Even so, prices likely remain above 2024 levels this year.

The Metalnomist Commentary

The platinum tape now reflects classic deficit dynamics amplified by macro momentum. Watch Nymex stocks, South African maintenance schedules, and Chinese retail sell-through as leading indicators. Sustained deficits suggest dips may be shallow unless jewellery remelt accelerates.

Platinum prices rise on supply misalignment

Platinum Raw Material

Platinum prices rise on supply misalignment, tightening liquidity across key hubs. Heraeus reports a 4% weekly gain to $1,442/oz. Implied lease rates also climbed, signalling stress in physical availability. As a result, some users face delays sourcing metal.

Lease rates spike as stocks shift

Heraeus links the squeeze to a geographic reshuffle of stocks. Starting late 2024, metal moved from London into the United States. Meanwhile, Chinese imports increased this year, absorbing additional supply. Consequently, inventories clustered away from end users. Platinum prices rise on supply misalignment when metal pools far from demand centres.

South African output adds upside risk

Limited South African production compounds tightness. Valterra Platinum’s second-quarter output fell year on year. Therefore, supply expectations weakened into the second half. Platinum prices rise on supply misalignment when mine flows underperform.

Institutional buyers now juggle higher borrowing costs and thinner spot liquidity. However, stabilised logistics could normalise lease rates. Until then, participants may prioritise term contracts over discretionary purchases.

The Metalnomist Commentary

The market’s pain point is location, not only volume. Unless stocks rebalance toward consuming regions, lease stress may persist. Watch South African mine cadence and Chinese import appetite for the next price leg.

Samancor Establishes New Charge Chrome Pricing Standard for 3rd Quarter

Samchrome FZE, the Dubai-based distributor for South African ferro-chrome producer Samancor, announced on Sunday its decision to introduce an independent reference price for charge chrome shipments to Europe in the third quarter of 2024. This decision follows the recent discontinuation of the longstanding European Benchmark Ferrochome Price (EUBM).

Setting the price at $1.52 per pound, Samchrome FZE aims to fill the void left by the EUBM, which historically set the industry standard for South African charge chrome containing a minimum of 52% chrome, crucial for global benchmarks in the stainless steel sector.

Previously negotiated by South African producer Merafe Resources in collaboration with Glencore, the discontinuation of the EUBM prompted rapid adjustments across European, North American, and Asian markets. Many stakeholders agreed to extend the final Glencore-Merafe benchmark of $1.52/lb into the third quarter, aligning with Samancor's newly established pricing framework.

While Samancor previously played a role in negotiating the EUBM, recent developments indicate a shift in strategy, with the company now asserting its own pricing model. Discussions have also surfaced regarding the adoption of alternative pricing mechanisms leveraging indexes from reputable price reporting agencies, highlighting broader industry trends toward diversification and transparency.

As market participants navigate these changes, varying perspectives emerge on the viability of direct EUBM replacements, given concerns over regulatory scrutiny and the evolving dynamics of ferro-chrome spot pricing.

Africa's Minerals Must Power Africa: Mining Indaba Calls for Boost in Intra-Continental Trade

Africa's Minerals

AfCFTA, regional value chains, and self-defined priorities take center stage in reshaping Africa’s mineral future

Africa holds nearly a third of the world’s critical mineral reserves—yet trades only 16% of those within its own borders. At the 2025 Mining Indaba conference in Cape Town, ministers, economists, and industry leaders called for a new era of intra-African trade and industrialisation, urging the continent to redefine critical minerals based on African needs—not Western frameworks.

South Africa’s Minister of Mineral and Petroleum Resources, Gwede Mantashe, emphasized that African countries must resist the external dictates that dominate the global critical minerals conversation. Instead, he said, Africa should set its own criteria and align its mineral strategies with industrial development goals.

With abundant reserves of cobalt, copper, manganese, and graphite, Africa is in a strategic position to power the global energy transition. However, exporting raw minerals without regional beneficiation limits Africa’s economic growth. That’s why the African Continental Free Trade Area (AfCFTA)—the largest free trade agreement globally—is being hailed as a turning point for the continent.

AfCFTA Key to Building African Mineral Value Chains

The AfCFTA, covering 54 countries and a combined GDP of $3.4 trillion, offers a platform to strengthen regional supply chains. According to Solomon Quaynor of the African Development Bank (AfDB), building regional value chains will help countries meet domestic needs before focusing on exports to regions like the EU—especially with the rise of barriers such as the carbon border adjustment mechanism.

He stressed that industrialisation cannot succeed in isolation. Infrastructure and cross-border trade corridors are essential to achieving scale, efficiency, and competitiveness. A strong example is the joint electric vehicle and battery economic zone being developed between Zambia and the Democratic Republic of Congo. This initiative aims to position Africa as a global player in the battery metals industry.

Finance, Infrastructure, and Strategy Must Align

Improved infrastructure and connectivity will underpin the success of intra-African trade. Institutions like the African Export-Import Bank (Afreximbank) are stepping in with special funds to support countries and companies during this transition. Afreximbank is offering financing, technical assistance, and grants to reduce risk and unlock trade bottlenecks.

Kanayo Awani, Executive Vice-President for Intra-African Trade at Afreximbank, made it clear: critical minerals should serve Africa’s prosperity—not just feed distant supply chains. Redefining trade terms will ensure that mineral wealth accelerates industrialisation, reduces poverty, and supports long-term economic independence across the continent.

Africa’s future lies in mining for Africans first—building regional markets, investing in processing, and growing industries that transform raw minerals into manufactured goods on African soil.

Assmang Cato Ridge FeMn smelter closure reshapes South Africa’s manganese alloys

US Brimstone

The Cato Ridge FeMn smelter closure marks Assmang’s permanent exit from ferro-manganese production. ARM is restructuring its manganese alloy portfolio after heavy losses. Assmang will shut the Cato Ridge Works following a Section 189 process. All employees will be retrenched by 31 August.

Restructuring details and asset sales

Assmang will sell Cato Ridge properties to Assore for R453mn. It will also sell its Sakura Ferroalloys stake to Assore. Once closed, Assmang will distribute R900mn to ARM. Therefore, ARM crystallizes value while exiting loss-making alloy exposure.

Market implications for South African manganese

The Cato Ridge FeMn smelter closure reflects South Africa’s escalating cost pressures. High power tariffs and logistics constraints erode alloy competitiveness. As a result, selling manganese ore increasingly outperforms alloy conversion. The closure leaves one remaining manganese alloy producer in South Africa.

Downstream users should prepare for tighter high-carbon FeMn availability from South Africa. However, global supply remains supported by Asia and the CIS. Contract buyers may seek diversified sources or renegotiate premiums. Meanwhile, the Cato Ridge FeMn smelter closure may shift trade flows.

The Metalnomist Commentary

This shutdown ends a chapter in South Africa’s alloy beneficiation and concentrates risk in one producer. Watch Eskom tariffs, rail reliability, and Asian alloy capacity for the next price signal. Offtake renegotiations and premium adjustments are likely through year-end.

Merafe Temporarily Suspends Lion Ferro-Chrome Smelter

Merafe Resources

Maintenance Shutdown Amid Weak Market Conditions

Merafe Resources has suspended operations at its Lion ferro-chrome smelter in South Africa for scheduled maintenance and planned rebuilds. The facility has a nameplate capacity of 720,000 metric tonnes per year, making it one of the largest in the region. The temporary suspension underscores both operational requirements and broader market headwinds affecting the ferro-chrome sector.

The company, which operates the smelter as part of a joint venture with Switzerland-based Glencore, has already halted production at its Boshoek and Wonderkop smelters earlier this year. Boshoek was idled on 1 May, followed by Wonderkop on 31 May, both due to difficult market conditions and weaker demand.

South African Ferro-Chrome Industry Under Pressure

The joint venture’s ongoing capacity reductions reflect sustained challenges across the South African ferro-chrome industry. The Lydenburg smelter was permanently closed in 2020, while the Rustenburg smelter was placed under care and maintenance in 2024. These moves highlight the structural oversupply, rising energy costs, and weaker stainless steel demand weighing on the ferro-chrome market.

As a result, producers face mounting pressure to balance production efficiency with profitability. Maintenance schedules, cost discipline, and potential future restarts will likely depend on global ferro-chrome price recovery and improvements in stainless steel demand, particularly from China.

The Metalnomist Commentary

Merafe’s latest suspension highlights the fragility of South Africa’s ferro-chrome industry, where high energy costs and market volatility remain persistent risks. With multiple smelters idled or closed, supply-side discipline may support future price stabilization, but global demand recovery will be essential for sustainable operations.

Amplats Boosts 2Q PGM Sales Despite Weaker Output

South African metals mining company Amplats has reported a 14% increase in platinum group metals (PGM) sales for the second quarter compared to the previous year, even though production fell by 2% due to low grades and challenging ground conditions at several of its mines.

Amplats credited operational initiatives at the Amandelbult complex in South Africa for the positive results. The firm's refined PGM production rose by 7% year-on-year to 1.15 million troy ounces (toz).

While the company's own-managed mine metal in concentrate production fell by 3% year-on-year to 547,200 toz in April-June, it marked a 9% increase from the first quarter.

PGM production at Amandelbult increased by 7% to 157,600 toz, thanks to improved ore grades and better underground infrastructure. This increase partially offset the lower production figures at other units. Production at Mototolo, Mogalakwena, and Unki in South Africa dropped by 14% to 66,300 toz, 4% to 232,600 toz, and 7% to 54,700 toz, respectively.

Tragically, during the second quarter, two workers died at Amplats' Dishaba Mine, part of the Amandelbult complex. The fatalities led to a work stoppage across the mine, which is expected to reduce Amandelbult's 2024 metal in concentrate production by 5%.

PGM sales from production increased by 14% year-on-year to 1.27 million toz. Amplats attributed the rise in sales to higher refined production and the drawdown of finished goods. However, the increase in sales volumes was counterbalanced by significantly lower sales prices for PGMs, with the average second-quarter PGM basket price at $1,419/toz, down 18% from a year earlier.

The decline in the PGM basket price was driven by a 31% drop in palladium prices and a 37% decrease in rhodium prices. Platinum prices also fell by 2% over the same period.

Amplats stated that its production guidance for 2024 remains unchanged, though this could be affected by potential power supply curtailments by South African utility Eskom. The company's production numbers were adjusted to reflect the sale of Amplats' 50% interest in the Kroondal project on November 1.

Kazera Signs HMS Supply Agreement with Fujax South Africa

Whale Head Minerals

Kazera Global, a UK-based mining company, through its subsidiary Whale Head Minerals (WHM), has entered into a significant agreement with Fujax South Africa to supply heavy mineral sands (HMS). This move marks a critical step in expanding WHM’s operations in the South African minerals market.

Under the terms of the agreement, WHM will supply Fujax with an initial 100,000 tonnes of HMS, which will be delivered in monthly batches of 6,000 tonnes. The first shipment is slated for March 2025. Fujax, an energy and mineral trading firm based in South Africa, will be responsible for the transport, processing, and sale of the HMS. As part of the deal, Fujax will pay WHM 80% of the final sales price minus costs, and the transaction will involve two prepay instalments totaling $600,000 by January 2025.

Key Details of the Agreement and HMS Production

Heavy mineral sands (HMS) are a rich source of valuable minerals such as rutile, ilmenite, zircon, and monazite. These minerals are essential in producing titanium, zirconium, and rare earth elements, which are used in a wide range of industrial applications, from aerospace to electronics.

WHM’s production capacity is supported by its Walviskop plant located in South Africa. The site is home to an estimated 1.5 million tonnes of HMS, providing the necessary raw material to fulfill the agreement with Fujax. In addition to this agreement, Kazera is actively pursuing mining rights for the nearby Perdevlei HMS site, which holds much greater potential, estimated to be 34 times larger than the Walviskop site.

Kazera’s Strategic Expansion and Future Prospects

This deal with Fujax is part of Kazera Global’s broader strategy to strengthen its presence in the heavy mineral sands market, particularly in South Africa. The company’s CEO, Dennis Edmonds, highlighted the strategic importance of the Walviskop and Perdevlei sites in the future of their operations. As demand for minerals like zircon and titanium increases, Kazera’s operations stand to play a pivotal role in meeting the global need for these materials.

Jubilee Metals to Sell Chrome and PGM Operations

Jubilee Metals

Jubilee Metals to sell chrome and PGM operations marks a decisive strategic pivot. The company plans to divest its South African chrome and PGM assets to One Chrome for up to $90mn. The move will fund growth in Zambia, where Jubilee sees strong copper market dynamics.

Why the divestment now

Jubilee Metals to sell chrome and PGM operations reflects a focused capital allocation plan. Management backs the sale unanimously and set a 28 August shareholder vote. The deal proceeds will exceed the copper unit’s short-term capital needs, improving funding certainty.

What the transaction covers

Jubilee Metals to sell chrome and PGM operations includes chromite reef and tailings processing in South Africa. One Chrome, a private resources group with local affiliates, is the buyer. Jubilee will retain and expand copper operations in Zambia, centered on waste reprocessing.

The copper thesis drives Jubilee’s portfolio reset. The board cites firm copper demand signals to justify the shift. Therefore, the company aims to scale processing and offtake capabilities in Zambia.

The sale reshapes Jubilee’s earnings mix toward copper. Meanwhile, exiting chrome and PGM simplifies operations and reduces South African exposure. As a result, management can concentrate on copper project execution and cash conversion.

The Metalnomist Commentary

Jubilee is trading product breadth for balance-sheet clarity and copper leverage. Execution now hinges on closing the sale and rapidly converting proceeds into Zambian throughput gains. Watch the 28 August vote and subsequent copper ramp milestones for validation.

Giyani Produces First Battery-Grade Manganese at South Africa Demo Plant

Giyani Metals

High-Purity Manganese Output Targets EV and Energy Storage Markets

Giyani Metals, a Canada-based mining company, has successfully produced its first battery-grade manganese at its South African demonstration plant, the company announced today. The milestone marks a key step toward supplying the electric vehicle (EV) and energy storage system (ESS) markets with high-purity manganese materials.

Production began in February, following the commissioning of the Johannesburg-based demonstration facility, which started in October last year. The plant produced high-purity manganese oxide (HPMO), a precursor for high-purity manganese sulphate monohydrate (HPMSM) used in EV batteries.

Although Giyani initially aimed to begin production in Q4 2023, water and power availability challenges in December caused delays. Nonetheless, the facility is now operating and preparing for the first HPMSM output in Q1 2025.

Commercial Production Planned for Botswana

The South African demo plant is designed to derisk and validate the process for Giyani’s planned commercial plant in Botswana. This larger facility will supply automotive OEMs with critical battery-grade manganese, improving global supply chain resilience.

As demand grows for sustainable and regionally diversified manganese sources, Giyani’s progress supports the strategic shift away from China-dominated processing. The company is positioning itself as a key Western supplier of battery-grade manganese for next-generation lithium-ion batteries.

Samancor Reduces Charge Chrome Benchmark for Fourth Quarter

Samancor

Samchrome FZE, the distributor for South African ferrochrome producer Samancor, has announced a reduction in its reference price for charge chrome in Europe for the fourth quarter of 2024. The new price, set at $1.46/lb, marks a 4% decrease from the previous quarter’s benchmark of $1.52/lb.

Samchrome's reference price replaces the European Benchmark Ferrochrome Price (EUBM), a former industry standard for South African charge chrome with a minimum chrome content of 52%. The EUBM was discontinued in June 2024 due to pressure from European competition regulators and criticism from market participants, who believed it was disconnected from the spot prices of higher-grade ferrochrome.

The EUBM, once negotiated by South Africa's Merafe Resources and Glencore in partnership with a European stainless steelmaker, was abandoned in May 2024. Following the discontinuation, many buyers and sellers continued to use the final Glencore-Merafe price of $1.52/lb. Samancor initially adopted this price for its reference point in July.

Despite Samancor’s new reference price, multiple spot transactions have been reported below the $1.46/lb mark. Traders and end-users are expressing concerns that the new reference price, like the EUBM, may not reflect true market conditions. As a result, many market participants are turning towards alternative pricing mechanisms, such as index-based systems offered by price reporting agencies, to replace the outdated EUBM.

The Move Towards Pricing Reform

In both the European and North American markets, the search for a more accurate pricing system is ongoing. The limitations of the EUBM and concerns over the accuracy of the current reference price highlight the need for a more transparent and market-reflective approach. The future of charge chrome pricing may lie in the adoption of these newer, index-driven mechanisms.

Eastplats Commissions New PGMs Processing Facility at Crocodile River Mine

Eastplats

Eastern Platinum (Eastplats), a leading South African producer of platinum group metals (PGMs), announced the successful commissioning of its new PGMs processing plant at the Crocodile River Mine, located within the Bushveld Complex in South Africa. This strategic move marks a significant milestone for Eastplats as it transitions from a tailings storage facility chrome recovery operation to a comprehensive PGMs concentrate and metallurgical chrome concentrate producer.

Enhanced Production Capabilities

According to Eastplats' CEO, Wanjin Yang, the company’s strategic shift aims to capitalize on the lucrative PGMs market by expanding its output capabilities. By the start of October, the company had blasted 75,000 tons of run-of-mine (ROM) ore, processing 22,000 tons in September alone. This effort resulted in approximately 1,300 ounces of 6E PGMs, which include platinum, palladium, rhodium, ruthenium, iridium, and gold. The concentrate was then delivered to Impala Platinum, a South African PGMs producer, under an existing offtake agreement facilitated through Eastplats' subsidiary, Barplats Mines.

The Crocodile River Mine, situated in the Bushveld Complex, is in an area known for containing a significant portion of the world’s PGMs-bearing ore. As part of its long-term plan, Eastplats intends to ramp up production at the Zandfontein underground operations. By the end of 2023, the site is projected to produce 40,000 tons of ore per month, with a targeted increase to 70,000 tons per month by the close of 2025. The new facility boasts an annual capacity to process up to 1,000,000 tons of ore, enhancing Eastplats' ability to meet growing demand.

In total, Eastplats expects to blast and process 185,000 tons of ROM ore from Zandfontein by the end of the year, solidifying its position as a key player in the PGMs sector. This development not only reflects the company’s expansion ambitions but also signals the growing importance of PGMs production within the region.

Orion Glencore copper-zinc deal backs South Africa’s Prieska revival

Orion Glencore

The Orion Glencore copper-zinc deal will inject up to $250mn into South Africa’s Prieska mine redevelopment. Orion Minerals signed a non-binding term sheet with Glencore covering staged financing and long-term concentrate offtake, making the Orion Glencore copper-zinc deal a cornerstone funding package for the project. As a result, the Orion Glencore copper-zinc deal positions Prieska as a significant future supplier of copper and zinc for the energy transition.

Orion Glencore copper-zinc deal structures phased financing for Uppers and Deeps

The agreement splits funding between Prieska’s near-surface “Uppers” orebody and the deeper “Deeps” deposit. Orion expects $40mn to flow first into the Uppers to fast-track initial mine development and near-term output. Meanwhile, a second tranche of $160mn–210mn will fund full build-out of the Deeps, subject to due diligence and final documentation.

Glencore also offers an early drawdown facility of up to $50mn for Deeps pre-works. This structure allows Orion to de-risk critical engineering and infrastructure before committing to the full capital envelope. Therefore, the Orion Glencore copper-zinc deal blends development capital with commercial offtake in a way that lowers financing risk.

Under the term sheet, Glencore will take 100pc of bulk concentrates from the Uppers for five years. It will also off-take 100pc of copper and zinc concentrates from the Deeps for 10 years. Orion retains flexibility on delivery points and advance sales, giving it room to optimise logistics and pricing across global markets. First production is targeted for late 2026.

Prieska and Okiep strengthen South Africa’s energy transition metals pipeline

Prieska carries a sizeable resource base to underpin the Orion Glencore copper-zinc deal. The project hosts 31mn t grading 1.2pc copper and 3.6pc zinc. A definitive feasibility study released in March outlined a two-phase development plan. It targets a combined 13.2-year mine life with steady-state output of 30,000 t/yr copper and 65,000 t/yr zinc.

These volumes are material in the context of tightening global copper and zinc supply. Copper is central to electrification, grid build-out and EV infrastructure. Zinc remains key for galvanised steel and infrastructure corrosion protection. Therefore, Prieska aligns directly with energy transition metal demand.

At the same time, Orion continues to advance its Okiep copper project in the same region. Together, Prieska and Okiep could re-establish the Northern Cape as a meaningful copper district. The Orion Glencore copper-zinc deal sends a positive signal for South African base metals investment, even as regulatory and power challenges persist.

The Metalnomist Commentary

Glencore’s willingness to provide both capital and long-dated offtake confirms Prieska’s strategic appeal in a tightening copper-zinc market. For Orion, the deal reduces financing uncertainty and validates its district-scale ambitions in the Northern Cape. Market participants should now watch execution discipline, permitting progress and how quickly Prieska can move from term sheet to binding financing and construction.