Glencore-Merafe Joint Venture builds New Platinum Group Metal production Plant in Kroondal Mine

Merafe Resources, a ferrochrome producer listed in JSE, reported that it and Glencore Operations South Africa had reached an agreement to contribute a new platinum group metal (PGM) production plant to (JV), a Glencore-Merafe chromium joint venture, which is currently under construction in the Kroondal mine.

The main business of the new platinum group metals plant will be to handle platinum group metal materials from the joint venture's western chromium mine and mining operations suitable for tailings facilities and dams.

FD Ditabe Chocho, a Merafe resources company, told online Mining that the PGM concentrate to be produced by the plant is an associated mineral concentrate from chromium ore produced by a joint venture partner.

He added that the plant was expected to be completed this year and that since it was built in stages, it would enable the joint venture partner to currently produce concentrates, even if it was still under construction.

It will also deal with PGM-containing materials, Glencore South Africa and Merafe directly or indirectly related to PGM from certain mining operations near the Kroondal mine.

"the cost of the factory will be funded by our cash reserves and will be disclosed when we release year-end results," he said.

Looking ahead, the operation of the new PGM plant will be subject to the notarization and sharing agreement of the existing unincorporated joint venture between Merafe and Glencore Operations South Africa.

Meanwhile, Merafe reported that its ferrochrome production from the joint venture increased by 42.7% year-on-year to 379,000 tons as of December 31.

Its share of production in the fourth quarter was 102000 tons-up 5.1% from a year earlier, mainly due to the fact that current production was less affected by the Covid-19 pandemic and increased plant efficiency at smelters.