Sibanye-Stillwater has finalised new chrome agreements with the Glencore Merafe Venture (GM Venture), following the fulfillment of all conditions precedent. The agreements, which will take effect on November 1, 2025, are regarded as a major step in optimising chrome output across Sibanye-Stillwater’s South African platinum group metal (PGM) operations.

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The new Chrome Management Agreement (CMA) and the enhancements to the existing Marikana Contract, originally signed between Lonmin and the GM Venture, are expected to deliver stronger financial and operational outcomes.

Among the key benefits, the transaction will accelerate Chrome delivery volumes by roughly 20 years, which will boost future cash flow through increased feed and improved recoveries from the Marikana Chrome Recovery Plants (CRPs). Once the Marikana Contract expires, the CRPs will fall under the CMA, allowing Sibanye-Stillwater to secure a larger share of free cash flow from chrome production.

Aside from the Marikana CRPs, all other Sibanye chrome plants will immediately benefit from the CMA’s value-enhancing provisions once the agreement becomes effective.

The collaboration also introduces operational synergies, with Glencore set to apply its processing expertise to improve chrome recovery rates and cut operating costs across all relevant CRPs.

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Furthermore, the improved economics from the deal are expected to enhance the commercial potential of brownfield expansion projects currently under review at Sibanye’s South African PGM operations.

Commenting on the development, Sibanye-Stillwater CEO Richard Stewart said the agreements represent a significant milestone for the company’s chrome strategy.

“The closure of the Glencore Merafe agreements marks a pivotal step in unlocking long-term value from our significant chrome by-products at our SA PGM operations. Aligning operational expertise and commercial interests, we are laying the foundation for sustainability at our SA PGM operations, benefitting all stakeholders and enhancing returns for the Group,” he said.

The announcement underscores Sibanye-Stillwater’s continued drive to strengthen its revenue streams and reinforce the long-term sustainability of its PGM operations in South Africa through strategic partnerships and efficient by-product management.