Platinum Group Metal (PGM), whose main source of revenue is the Glencore-Merafe joint venture, has announced the construction of a new facility at the Kroondal mine. This comes after the PGM said that fourth-quarter and year-end output increased by 5.1% to 102 000 tons, with attributable production increasing by 42.7% to 379000 tons. Five ferrochrome smelters and eight mines are part of the Glencore-Merafe Chrome collaboration. Ferrochrome output was also boosted by improved plant efficiency at their smelters.
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New PGM Unit at Kroondal Mine
The mine stated in August 2021 that it had returned to profitability and had paid an interim dividend to shareholders based on robust growth during the half-year ending June 2021. Merafe also announced that it has achieved an agreement with Glencore Operations South Africa Proprietary to contribute to the joint venture that is building a new platinum group metal (PGM) production unit at the Kroondal Mine.
The main operations of the new PGM plant, according to the company, will be the treatment of PGM-bearing material derived from mining operations at the joint venture’s western chrome mines, which will be available in applicable tailings facilities and dams, as well as certain mining operations near the Kroondal Mine to which Glencore SA and/or Merafe have/have PGM rights directly or indirectly. According to the mine, the new PGM plant’s activities are managed by Merafe and Glencore SA’s existing unincorporated joint venture’s notarial pooling and sharing agreement.
In the automobile industry, PGM miners are crucial. PGM prices soared last year, helping the sector. In the last two years, the basket price of PGMs has also risen due to rising chrome ore prices. Merafe Resources, meanwhile, claimed the government’s intention to levy a tax on chrome exports would strengthen its business case. According to the organisation, the mineral tax was accepted in principle, and the government should put it into effect.
