Merafe and Glencore SA have agreed to improve and expand the eastern Platinum Group Metal (PGM) production plant at the Thorncliffe Mine in Limpopo, South Africa.
The primary functions of the Eastern PGM Plant will be to handle PGM-bearing material pertinent to the eastern chrome mining functions and as otherwise mutually agreed upon by the parties.
The existing notarial pooling and sharing agreement between Merafe and Glencore SA governs the operations of both the western and eastern PGM plants.
Estimates put Merafe's share of the money needed to upgrade and expand the eastern PGM plant at around R117 million.
Independent directors of Merafe indicated that all transactions related to the eastern PGM plant contribution to the joint venture (JV) were conducted on an arm's length basis and are consistent with the joint venture agreement.
The parties first agreed in January 2022 to contribute to the Glencore Merafe Chrome venture and a new PGM production plant constructed at the Kroondal Mine.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
