Table of Contents
Key Points
- Sibanye pivots to chrome as PGM prices slump, partnering with Glencore’s Merafe Venture to boost output and unlock synergies.
- Sibanye’s chrome revenue jumps 42 percent to R3.1 billion ($168.1 million) in H1 2024, with sales volumes up 19% year-over-year.
- CEO Neal Froneman exits in September after 12 years, reshaping Sibanye’s portfolio with a $500 million Franco-Nevada streaming deal.
Sibanye-Stillwater, a mining company led by South African executive Neal Froneman, has entered into a chrome management agreement with Glencore's Merafe Venture, positioning the miner to offset losses from a prolonged slump in platinum group metal (PGM) prices.
The deal, announced Wednesday, will see Glencore’s joint venture with Merafe Resources oversee Sibanye’s chrome recovery plants in South Africa, boosting output and unlocking synergies across both operations.
Strategic shift amid PGM price pressure
The platinum group metals market—crucial for automotive emissions control—has been in decline, with rising electric vehicle (EV) sales raising concerns over long-term demand. While PGM prices have slumped, chrome has remained resilient, buoyed by demand from China. Producers expect a rebound after a temporary slowdown in late 2024.
Sibanye, which generated R3.1 billion ($168.1 million) in chrome sales during the first half of 2024, saw a 42 percent increase in revenue from the metal compared to the same period last year. Sales volumes reached 1.3 million tons, up 19 percent year-over-year. The deal with Glencore marks a strategic pivot for Sibanye, as Froneman, who has overseen the company’s rise to a leading global miner, prepares to step down in September after a 12-year tenure.
Sibanye’s broader restructuring efforts
Beyond chrome, Sibanye is reshaping its portfolio. The company recently secured $500 million in non-debt funding via a gold and platinum streaming deal with Franco-Nevada. It has also exited non-core assets, selling the Beatrix 4 shaft and Beisa uranium project to Neo Energy Metals for R500 million ($28.1 million).
With operations spanning South Africa, North America, and South America, Sibanye remains a major player in the global mining sector. Froneman, who has been instrumental in the company’s expansion into platinum, palladium, and gold, holds a 0.12 percent stake, equivalent to 3.28 million shares.
Glencore, which operates in 35 countries, managing over 60 commodities with a 150,000-strong workforce, has reinforced its footprint in the chrome market. Merafe Resources, its joint venture partner, confirmed the deal in a separate statement.
