Sibanye signs chrome pact with Glencore amid platinum price slump

Diversified miner Sibanye Stillwater said on Wednesday it had reached a chrome management deal with Glencore’s Merafe Venture in South Africa as it seeks to partially offset the impact of an extended platinum metal price slump.

Chrome is a by-product of platinum mining, and South African miners including Sibanye are reporting increased income from the metal used in steelmaking at a time of sharply lower prices for the primary minerals.

The platinum group metals (PGM), used to curb automotive emissions, have experienced a steep price decline and face an uncertain future as sales of battery-powered vehicles grow.

At the same time, chrome prices have been buoyant, driven by demand from China, and producers expect a rebound after a cooling off in the last quarter of 2024.

The majority of Sibanye’s chrome recovery plants at its South African PGM operations will be operated by the Glencore Merafe Venture, “enabling both parties to leverage synergies and increase chrome output”, Sibanye said in a statement.

Ferrochrome producer Merafe Resources, a Glencore affiliate and partner in the Glencore Merafe Venture, confirmed the arrangement in a separate statement.

Sibanye’s outgoing CEO Neal Froneman said he expects the deal to “immediately enhance cash flow from the SA PGM operations”.

Sibanye earned 3.1 billion rand ($168.84 million) from chrome sales in the first half of 2024, a 42% increase on the same period of 2023. Its chrome sales volumes of 1.3 million tons in the six months were 19% higher than the same period the year before.

($1 = 18.3608 rand)

(By Nelson Banya; Editing by Helen Popper)

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