PERFORMANCE

Abridged mineral resources and mineral reserves statement

Introduction

The purpose of this report is to document an abridged version of the Mineral Resources and Mineral Reserves of Merafe Resources (Merafe) in accordance with the requirements of the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 (SAMREC). All Merafe's operations are part of a pooling and sharing venture with Glencore Operations South Africa Proprietary Limited (the Glencore-Merafe Chrome Venture (the Venture)). Merafe has a 20.5% attributable beneficial interest in the Mineral Resources and Mineral Reserves of the Venture. The estimates in this document are as at 31 December 2021. To state the Mineral Resources and Mineral Reserves estimates for 31 December 2021, the budgeted production for July 2021 to December 2021 has been subtracted from the total estimates. The Mineral Resource and Mineral Reserve information in the tables on the following pages is based on information compiled by a Competent Person (as defined by the SAMREC Code).

Type of mining and mining activities

The Venture has chrome mining operations along the Western and Eastern Limbs of the Bushveld Complex. The operations along the Western Limb of the Bushveld Complex comprise the Kroondal Mine. The LG6 Package at Kroondal Mine is mined underground using trackless mining methods on a Bord-and-Pillar layout. Kroondal will be targeting a production rate of 146ktpm for 2022. Boshoek Mine is 20km north-west of Rustenburg. The MG1, LG5 and LG6 Chromitite Layers have been mined in several open pits. The opencastable ore has almost been depleted and the mine has been put on care and maintenance. Townlands Extension 9 is an exploration project. This position has remained the same since the application for a retention permit in November 2017. The DMRE accepted the application and the Venture is still awaiting the granting and execution of the application. No exploration costs have to be expended on the project from the date of execution of the application for the subsequent three years. Pending the outcome of the application, no third party may legally apply for a Prospecting Right over this property. Thorncliffe, Magareng and Helena Mines are situated along the southern portion of the Eastern Limb of the Bushveld Complex. The MG1 Chromitite Layer is being mined underground using trackless mining methods on a Bord-and-Pillar mining layout. Thorncliffe, Magareng and Helena Mines are situated within the same Mining Right area but are situated on different farm properties. The farms of St George and Richmond have been incorporated into the Mining Right of the Eastern Chrome Mines Complex. The Venture's silica deposit lies 15km west of Rustenburg. The quartzite is mined mainly to supply the Venture's furnaces with silica.

Comparison of Mineral Resources and Mineral Reserves estimates with previous year's estimates

The annual Mineral Resource and Mineral Reserve estimates are compared with the previous year's statement and reconciled each year after the estimates have been finalised. Changes in the year-on-year tonnage and grade estimates are mainly due to mining depletion and changes in the Mineral Resource and Mineral Reserves tonnages and grades due to additional geological information. In addition, disposed or lapsed rights will also impact total resources and reserves.

The biggest impact to the year-on-year changes in the Mineral Resource tonnages for the Venture is mainly due to mining depletion of 6.795Mt. The net movement after mining depletion is 2.207Mt.

There is no material difference in the silica Mineral Resource estimate from December 2020 to December 2021 and the change is mostly attributed to mining depletion. The change in the Mineral Reserves for Rietvly is mainly as a result of mining depletion.

Material risk factors

There are no foreseen material risk factors that could affect the validity of the current Mineral Resource and Mineral Reserve statement. All the legislative requirements have been met with respect to the rights to mining and prospecting for which the Mineral Resources and Mineral Reserves have been reported. All the operating mines are mining under new order, executed, Mining Rights. The Prospecting Rights of all the prospecting areas have been converted to new order Prospecting Rights.

For the complete Mineral Resources and Mineral Reserves Statement including definitions of the categorisation of mineral resources and reserves as per the SAMREC Code 2009, descriptions and exploration activities, geological settings of the reserves (including maps and diagrams), legal entitlement, methods and assumptions, material risk factors and a summary of environmental funding and management, see Appendix 1 to this report and our online Integrated Annual Report for 2021.

See Directors' Report and for the statement on mining rights and mining operations.

Chrome Mineral Resources statement

Bushveld Complex - Western Limb

        Measured Mineral
Resources
Indicated Mineral
Resources
Measured and Indicated
Resources
Inferred Mineral
Resources
 
Name of operation Attributable
Portion
Mining
method
Commodity
31.12.21

31.12.20

31.12.21

31.12.20

31.12.21

31.12.20

31.12.21

31.12.20
Competent
Person
Western Chrome Mines - LG6 Chromitite Package and MG1 Chromitite Layer                  
Waterval 20.5% UG Ore (mt) 16.231 16.231 1.03 1.03 17.26 17.26 0.7 0.7 MM/DR

    Cr2O3 (%) 41.31 41.31 42.6 42.6 41.4 41.4 43.0 43.0
Marikana West 20.5% UG Ore (mt) 2.974 2.974 1.69 1.69 4.67 4.67 MM/DR

    Cr2O3 (%) 42.43 42.43 42.6 42.6 42.5 42.5  
Kroondal 20.5% UG/OC Ore (mt) 9.308 9.433 0.61 0.61 9.92 10.04 MM/DR

    Cr2O3 (%) 42.79 42.76 41.5 41.5 42.7 42.7  
Kroondal Gemini 20.5% UG/OC Ore (mt) 13.793 12.972 0.85 2.21 14.64 15.18 MM/DR

    Cr2O3 (%) 42.30 42.31 41.3 41.3 42.2 42.2
Marikana East 20.5% UG Ore (mt) 4.459 4.459 0.52 0.52 4.98 4.98 MM/DR

    Cr2O3 (%) 42.23 42.23 41.9 41.9 42.2 42.2
Klipfontein/Waterval 20.5% UG Ore (mt) 13.235 12.278 29.69 22.46 42.93 34.74 92.6 100.7 MM/DR

    Cr2O3 (%) 42.01 42.06 42.0 42.0 42.0 42.0 42 42
Boshoek 20.5% UG/OC Ore (mt) 17.09 17.09 17.09 17.09 MM/DR

    Cr2O3 (%) 40.5 40.5 40.5 40.5
Townlands Extension 9     Ore (mt) 12.94 12.94 12.94 12.94 MM/DR

20.5% UG CCr2O3 (%) 41.4 41.4 41.4 41.4
Total - LG6 and MG1     Ore (mt) 60.00 58.347 64.43 58.55 124.43 116.9 93.3 101.4  
      Cr2O3 (%) 42.05 42.05 41.5 41.4 41.8 41.7 42 42  
Western Chrome Mines - Tailings                        
Kroondal Dam 20.5% Tailings (mt) 1.88 1.62 MM

    Cr2O3 (%) 17.2 17.1  
Waterval East Dam 20.5% Tailings (mt) 0.94 0.94 MM

    Cr2O3 (%) 18.5 18.5  
Waterval West Dam 20.5% Tailings (mt) 0.26 0.26 MM

    Cr2O3 (%) 16.9 16.9  
Cashan Dam 20.5% Tailings (mt) 0.03 0.03 MM

    Cr2O3 (%) 16.9 16.9
Total Tailings     (mt) 3.12 2.86  
      Cr2O3 (%) 17.5 17.5  
Bushveld Complex - Eastern Limb                        
Eastern Chrome Mines - MG1 Chromitite Layer                        
Thorncliffe 20.5% UG/OC Ore (mt) 44.028 45.095 3.47 3.60 47.50 48.70 SV/DR

    Cr2O3 (%) 40.03 42.21 40.8 40.9 40.1 42.1  
Helena 20.5% UG/OC Ore (mt) 21.473 23.396 13.29 13.02 34.76 36.42 9.6 10.4 SV/DR

    Cr2O3 (%) 39.81 39.8 38.5 38.5 39.3 39.3 38 38  
De Grooteboom 20.5% UG/OC Ore (mt) 1.037 1.037 0.50 0.50 1.54 1.54 SV/DR

    Cr2O3 (%) 40.22 40.22 40.3 40.3 40.2 40.2  
Richmond 20.5% UG Ore (mt) 1.559 1.774 22.27 23.22 23.83 24.99 25.9 24.6 SV/DR

    Cr2O3 (%) 41.10 41.23 41.0 41.1 41.0 41.1 41 41  
St George 20.5% UG Ore (mt) 0.716 0.715 4.45 4.39 5.17 5.10 18.6 18.5 SV/DR

    Cr2O3 (%) 40.41 40.41 39.4 39.7 39.5 39.8 39 40  
Total - MG1     Ore (mt) 68.813 72.017 43.99 44.73 112.81 116.75 54.1 53.5  
      Cr2O3 (%) 39.99 41.36 40.0 40.2 40.0 40.9 40 40  
Eastern Chrome Mines - MG2 Chromitite Layer                        
Thorncliffe 20.5% UG/OC Ore (mt) 41.8 41.8 SV/DR

    Cr2O3 (%) 38 38
Helena 20.5% UG/OC Ore (mt) 85.4 85.4 SV/DR

    Cr2O3 (%) 38 38
Total - MG2     Ore (mt) 127.2 127.2

    Cr2O3 (%) 38 38
Total - MG1 and MG2     Ore (mt) 68.813 72.017 43.99 44.73 112.81 116.75 181.3 180.7  

    Cr2O3 (%) 39.99 41.36 40.0 40.2 40.0 40.9 38 38  
Eastern Chrome Mines - Tailings                        
Thorncliffe Dam 20.5% Tailings (mt) 4.73 4.35 SV

    Cr2O3 (%) 19.6 19.9
Helena Paste 20.5% Tailings (mt) 0.21 0.25 SV

    Cr2O3 (%) 17.2 17.2
Total Tailings 20.5% Tailings (mt) 4.94 4.60

    Cr2O3 (%) 19.5 19.7  
Notes:
Tonnages are quoted as million metric dry tonnes.
Grades are quoted as %Cr2O3.
The measured and indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Mineral Reserves.
No cut-off grades are applied to the chromitite layers currently being mined because of the exceptional regional grade consistency and continuity.
The Mineral Resources are estimated as chromitite tonnages and grades to reflect the grades of the various individual chromitite layers. Both the LG6 and MG1 chromitite layers which the Venture is currently mining, are discrete solid chromitite layers.
 
Competent Persons:
SV - Sulayman Yousuf Vaid, Glencore Operations SA, (PLATO - MS 0114). Lead Competent Person responsible for Mineral Resources and Mineral Reserves.
MM - Mogomotsi Maputle, Glencore Operations SA, Western Chrome Mines, (SACNASP - 400071/14). Responsible for Mineral Resources and Mineral Reserves.
DR - Dean Richards, Obsidian Consulting Services (SACNASP - 400190/08). Responsible for geostatistical analysis of data, Mineral Resource classification and construction of tonnage and grade block models and reporting of tonnage and grades from block models.
 

Chrome Mineral Reserve statement

Bushveld Complex - Western Limb

 

        Proved Ore
Reserves
Probable Ore
Reserves
Total Ore
Reserves
 
Name of operation Attributable
portion
Mining
method
Commodity 31.12.21 31.12.20 31.12.21 31.12.20 31.12.21 31.12.20 Competent
Person
Western Chrome Mines - LG6 Chromitite Package and MG1 Chromitite Layer                
Waterval 20.5% UG Ore (mt) MM/DR
        Cr2/O3 (%)  
Marikana West 20.5% UG Ore (mt) MM/DR
      Cr2O3 (%)  
Kroondal 20.5% UG/OC Ore (mt) 2.251 2.476 0.53 0.54 2.78 3.02 MM/DR
      Cr2O3 (%) 29.11 28.96 28.2 28.1 28.9 28.8  
Kroondal Gemini 20.5% UG/OC Ore (mt) 7.972 7.635 0.69 1.93 8.66 9.57 MM/DR
      Cr2O3 (%) 30.78 30.73 30.3 30.1 30.7 30.6  
Marikana East 20.5% UG Ore (mt) MM/DR
      Cr2O3 (%)  
Klipfontein/Waterval 20.5% UG Ore (mt) 0.026 0.307 0.17 0.08 0.20 0.39 MM/DR
      Cr2O3 (%) 28.49 27.99 28.4 28.3 28.4 28.1  
Boshoek 20.5% UG/OC Ore (mt) 0.58 0.58 0.58 0.58 MM/DR
      Cr2O3 (%) 26.1 26.1 26.1 26.1  
Total     Ore (mt) 10.249 10.418 1.98 3.13 12.22 13.55  
      Cr2O3 (%) 30.41 30.23 28.3 29.0 30.1 29.9  
Bushveld Complex – Eastern Limb                    
Eastern Chrome Mines – MG1 Chromitite Layer                    
Thorncliffe 20.5% UG/OC    Ore (mt) 20.224 22.959 2.51 2.62 22.73 25.58 SV/DR
      Cr2O3 (%) 34.78 34.31 32.9 33.0 34.6 34.2  
Helena 20.5% UG/OC Ore (mt) 1.667 4.271 1.67 4.27 SV/DR
      Cr2O3 (%) 29.43 29.15 29.4 29.2  
Richmond 20.5% UG/OC Ore (mt) SV/DR
      Cr2O3 (%)  
St George 20.5% UG/OC Ore (mt) 1.256 0.471 2.57 1.81 3.82 2.28 SV/DR

    Cr2O3 (%) 34.69 36.36 32.6 34.9 33.3 35.2  
Total - MG1     Ore (mt) 23.147 27.701 5.08 4.43 28.23 32.13  

    Cr2O3 (%) 34.39 33.55 32.7 33.8 34.1 33.6  
Notes:
Tonnages are quoted as million metric dry tonnes.
Grades are quoted as %Cr2O3.
No cut-off grades are applied to the chromitite layers currently being mined due to the exceptional regional grade consistency and continuity. A minimum mining cut of 1.8m is applied to the ore reserve tonnage to accommodate the mechanised mining equipment employed by the underground mining operations. External waste is included to make up the minimum cut where applicable. The chromitite layers are mined mainly underground using trackless mechanised mining methods on a Bord-and-Pillar mine layout design.
 
Competent Persons:
SV - Sulayman Yousuf Vaid, Glencore Operations SA, (PLATO - MS 0114). Lead Competent Person responsible for Mineral Resources and Mineral Reserves.
MM - Mogomotsi Maputle, Glencore Operations SA, Western Chrome Mines, (SACNASP - 400071/14). Responsible for Mineral Resources and Mineral Reserves.
DR - Dean Richards, Obsidian Consulting Services (SACNASP - 400190/08). Responsible for geostatistical analysis of data, Mineral Resource classification and construction of tonnage and grade block models and reporting of tonnage and grades from block models.
 
 

Statement by Competent Person

This summary has been reviewed and the relevant data extracted and compiled by Sulayman Yousuf Vaid (SV). SV is the Lead Competent Person, registered with the South African Geomatics Council (SAGC, PO Box 752799, Garden View, 2047), Reg. No. -GT gMS 0114 and holds a National Diploma in Mine Surveying. SV is a Mine Surveyor with 27 years' experience in Mine Survey, Mine planning and resource and reserve estimations and is directly linked to the mining industry and currently a full-time employee of Glencore Operations South Africa. SV consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

Sulayman Yousuf Vaid

Glencore Operations South Africa Proprietary Limited

PO Box 2131
Rustenburg
0300
RSA
Tel: (014) 590 2415
Fax: (014) 590 2498
22 March 2022

See Appendix 1 to this report and our online Integrated Annual Report 2021 for the complete Mineral Resources and Mineral Reserves Statement.

For Merafe ownership of specific mines contributed to the Venture see Directors' report in this report.

Prior year restatements are not significant or material.