Natural capital includes the natural resources and processes needed by an organisation to produce its products.
This includes renewable (timber and water) and non-renewable (fossil fuels, minerals and metals) resources and processes such as energy consumption, waste creation, emissions, etc. Without access to the natural capital contained in our mineral reserves and resources, our business would not exist.
We maintain and enhance natural capital by:
The Venture stakeholders benefit from its energy efficiencies, which have made it one of the lowest cost ferrochrome producers in the world and the lowest cost producer in South Africa.
The Venture focuses on understanding the current and future impact of climate change on its operations. Climate change risks are included in each operation's risk assessment. It measures and interprets energy and GHGs data to identify areas of opportunity. The Venture continuously researches and identifies potential energy and GHG reduction opportunities and evaluates the feasibility of implementing these opportunities. It also actively participates in discussions on climate change legislation via various industry organisations.
The Venture's efforts to continually evaluate and improve its energy efficiency are in line with the societal demand to reduce the emissions of GHGs. The Venture uses the Greenhouse Gas Protocol as an accounting and reporting standard for our emissions, which uses the 2020 location-based emission factor of 0.92805kgCO2e/kWh from the IEA. This protocol was developed in partnership with the World Resources Institute and the World Business Council for Sustainable Development. It divides GHG emissions into different types, categorising them as either direct (scope 1) or indirect (scope 2) emissions.
A representative of the Venture served on the council of the Energy Intensive User Group during 2022. The Venture, which participates in the Minerals Council of South Africa and the Ferro Alloys Producers Association environmental forum, represents the ferroalloys industry at Business Unity South Africa. The Venture's representatives play a leading role in these forums and they comment on climate change and carbon tax legislation. The Venture also engages with government via these forums to ensure that the potential impact the proposed legislation will have on our industry and Company is understood.
During 2022, the Venture again played an important role in the engagement process between business and the Department of Fisheries, Forestry and the Environment, DMRE and National Treasury on matters relating to GHG emissions, Carbon Tax, Just Transition and Renewable Energy Generation. Climate change performance is included in the health, safety, environment and community performance indicators that the Venture uses as part of its performance appraisals.
We are working with global specialists and draw on local expertise within our operational teams to identify value accretive abatement opportunities to further reduce our carbon footprint. The Glencore Alloys Group Environmental Manager is responsible for climate change-related issues in the Venture.
See the stakeholder engagement sectionon our website for more information on our stakeholder impact and engagement with government, our investors and business partners.
The Venture will continue with its engagement processes and identify and further evaluate potential GHG mitigation projects. The Venture's Climate Change and Energy Strategy strategically provides a systematic approach for the development and tracking of actions that would enable the Venture to achieve its decarbonisation objectives. The strategic elements involve managing its operational footprint, reducing emissions, collaborating with supply chains and having a transparent approach to reporting. The Venture forms part of Glencore's 1.5oC pathway aligned target of an absolute 15% reduction of total emissions (scopes 1, 2 and 3) by 2026 and a 50% reduction of total emissions (scopes 1, 2 and 3) by 2035 on 2019 levels. These targets are consistent with the midpoint of the Intergovernmental Panel on Climate Change's 1.5oC scenarios and the 1.5oC pathways set out by the International Energy Agency. Post 2035, the ambition is to achieve, with a supportive policy environment, net zero total emissions by 2050.
The Venture has appointed a service provider to develop a Rule Book to accurately calculate scope 3 emissions. The Rule Book will be aligned with the Venture's Greenhouse Gas Protocol. This exercise will be completed in July 2023 and scope 3 emissions data of the Venture will be calculated and reported by the end of 2023. The Venture has its scope 1 and scope 2 CHG emissions independently verified on an annual basis. The GHG emissions data validation and verification is a legal requirement under the Air Quality Management Act, 2004. Information on the business costs associated with climate change is being compiled by the Venture and this will be reported on from 2023. The Venture incorporates ESG in performance KPI's relating to Executive Employee Remuneration Policies.
The renewable energy strategy to support 50% total CO2e emission reduction by 2035 (as set out above) is reliant on 5 pillars:
The Venture generates GHG emissions from its smelting processes and from its energy use. The use of fossil fuels in the form of reductants in the furnaces contributes directly to the creation of GHGs, and the electricity supplied from coal-fired power stations contributes indirectly to the creation of GHGs. The Venture and Merafe are committed to minimising GHG emissions and improving our energy efficiency, and recognise the magnitude and importance of this challenge. The Venture also actively engages in public policy, specifically through collaboration with the DEFF on a carbon process aimed at estimating the country's annual carbon emissions.
Climate change remains a key longer-term risk for the Venture. The potential risks are complex in that they include operational risks such as business continuity, health and safety, environmental aspects and regulatory aspects. Risks are both physical and financial. For example, should the Venture's operations be damaged by flooding and extreme storms, this could cause business interruptions. The reduced availability of water could also interrupt business operations and have health impacts.
Restatements occur due to improvements in testing and/or methodology. If there are restatements in this report which are significant or material from prior statements then this will be stated.
Total energy consumption in the Venture's operations increased in 2022 as a result of increased production. The energy usage per tonne of ferrochrome produced increased from 14.36GJ/tonne to 14.50GJ/tonne. The energy consumption and performance of the Company in any year is dependent on the production performance in that year and the contribution of the most energy-efficient plants in the Venture to that production.
Note: There was a restatement processed for Diesel in May 2022 for the 2021 diesel data. The restatement resulted in a minor change of the overall diesel reported in 2021.
The Venture's total scope 1 (direct) and scope 2 (indirect) emissions increased in 2022 as a result of increased production. The CO2e generated per tonne of ferrochrome produced increased in 2022. The emissions performance of the Company in any year is dependent on the production performance in that year and the contribution of the most energy-efficient plants in the Venture to that production.
Note: There was a restatement processed for Diesel in May 2022 for the 2021 diesel data. The restatement resulted in a minor change of the overall diesel reported in 2021. This would impact the total Scope 1 emissions previously reported. In addition, the IEA publishes an emission factor for 2 years prior i.e. to 2019 emission factor is published in 2021. The previous location based emission factor was 0.932 kgCO2e/kWh which was updated to 0.92805 kgCO2e/kWh by the IEA in 2022.
Environment includes the natural resources and processes needed by an organisation to produce its products.
The Venture's long-term success depends on prioritising environmental issues and integrating environmental responsibility into its strategic planning, management systems and day-to-day operations. Management accountability is central to Glencore's integrated approach, which reviews its environmental risks and opportunities annually as part of its business strategy and planning process. Each site has a comprehensive environmental management system in place. The system provides access to aspects and the impact of all activities, from pre-feasibility to the operational phase, including closure and rehabilitation. The Venture's objective is to ensure environmental legal compliance, optimise its monitoring and measurement practices and to minimise and manage any waste and emission generation in an environmentally responsible manner. Environmental responsibilities are clearly included into legal appointments and job descriptions.
Water is a finite and precious natural resource essential to the sustainability of the communities in which the Venture operates. It is also necessary for its mining and metallurgical processes.
The Venture's operations are regulated through its Water Use Licences. One of the key legal compliance requirements is the development and annual updates of operations' Integrated Water and Waste Management Plan. The plans are underpinned by principles of responsible and sustainable water usage and pollution prevention. Various water treatment technologies including bioremediation have been implemented across the Venture's operations. The initiatives do not only mitigate water pollution but enable re-use of process water and reduces reliance on municipal potable water. The recent heat wave and interruption of electricity supply prompted operations to review their water risk assessments focusing on water availability and associated corrective measures. Based on the requirements of the Venture's HSEC & HR Strategic overview, the assets have set catchment context based local targets. The implementation of the enabling actions to achieve the targets will include local partnerships with other companies to improve the water quality in the catchment.
The Venture's operations work with the Department of Water and Sanitation, local communities, local authorities, the farming community and other industry users to ensure the sustainability of water resources and equitable access to water resources for stakeholders.
We recognise access to safe and clean water and sanitation as salient human rights. We seek to fully understand and minimise our operational water footprint and manage our activities in a way that protects our shared water resources. We are committed to ensuring good water management is in place at all of our assets and undertake detailed assessments, monitoring and implementation of corrective actions. Our assets consult their host communities and other relevant local water users to understand local priorities and to collaborate on sustainable solutions.
The availability of water is a key consideration when the Venture plans the expansion or construction of an operation. It uses the results of the environmental and social impact assessments it undertakes to guide its decision-making and to ensure it has the least possible impact on local water resources during the various phases of its projects. All of the Venture's operations have water conservation plans. They have previously set water intensity targets and have measures in place to help them be as water efficient as possible. In addition, its operations are identifying possible water reduction projects.
The water usage in the Venture decreased in 2022. The key drivers for this decrease was greater efficient water practices.
The mineral waste produced by the Venture in 2022 is set out below:
| Category | 2022 tonnes |
2021 tonnes |
2020 tonnes |
||
| Mineral waste – produced | 4 335 009 | 4 401 937 | 3 431 144 | ||
|---|---|---|---|---|---|
| Non-mineral waste – disposed | 9 714 | 12 601* | 9 898 | ||
| Non-mineral waste – recycled | 7 055 | 6 476 | 5 141 |
* Restated from 12 899 (not material or significant)
It is always the Venture's aim to have no environmental incidents at its operations. It monitors, reports, investigates and remediates any incidents that occur and applies lessons learnt to prevent similar incidents in the future. Its operations are required to report any environmental high-potential risk incidents, including near-misses, that could have resulted in a category 4 or 5 incident, even when the actual impact was less significant. Environmental incidents recorded at the Venture's operations also include incidents that occur as a result of contractor activity.
| Category | 2022 | 2021 | 2021 | 2019 | ||
| Category 1 – negligible (causing negligible, reversible environmental impact, requiring very minor or no remediation) | 38 | 52 | 38 | 77 | ||
|---|---|---|---|---|---|---|
| Category 2 – minor (causing minor, reversible environmental impact, requiring minor remediation) | 10 | 5 | 10 | 22 | ||
| Category 3 – significant (causing moderate, reversible environmental impact with short-term effect, requiring significant remediation) | 1 | – | 1 | – | ||
| Category 4 – major (causing serious environmental impact, with medium-term effect, requiring significant remediation) | – | – | – | – | ||
| Category 5 – disastrous (causing disastrous environmental impact, with long–term effect, requiring major remediation) | – | – | – | – |
Note: The Venture received an environmental fine at one of its operations in 2022. There were no Category 4 and 5 incidents in 2022.
| Category | 2022 tonnes |
2021 tonnes |
2020 tonnes |
2019 tonnes |
||
| NOx (oxides of nitrogen) | ||||||
| Stack emissions (total mass) | 2 135 | 1 782 | 840 | 1 113 | ||
| SOx (oxides of sulphur) | ||||||
| Stack emissions (total mass) | 4 736 | 4 876 | 3 281 | 3 344 | ||
| Total particulates | ||||||
| Stack emissions (total mass) | 1 832 | 1 979 | 1 219 | 1 729 |
Note: A minor restatement was processed for 2021 air emissions (not material or significant)
| * | The emission data is based on quarterly emission data which is used to calculate emission factors and then applied to the year. The nature of the operations at the Venture's semi-closed furnaces means that dilution air enters the air pollution control equipment. NOx is formed as a secondary emission through the air pollution control equipment due to the presence of nitrogen in the air. Small process changes in terms of gas volume and temperature can result in step changes in NOx emissions. The emissions at the Venture do not exceed any ambient standards for NOx or SOx. |
The Venture monitors and addresses the impacts and risks associated with the use of its products throughout their life cycles, including during stages outside of its control, such as use, recovery, recycling and disposal. It works with national and international industry associations, its customers and suppliers to understand the environmental health and safety risks of its products and to find ways to mitigate these risks. In terms of Registration, Evaluation and Authorisation and Restriction of Chemicals (REACH), all the products that the Venture exports to countries in the European Union have been pre-registered, with the relevant pre-registration certificates and numbers available. The Venture is also actively involved in REACH. No products produced by the Venture, or their packaging materials, were reclaimed during 2022. To ensure the quality of its products, the Venture aligns its systems with the requirements of ISO 9001:2015 and some of its smelters are certified. Its laboratories are ISO 17025 accredited, which ensures that the methods and equipment it uses are accurate.
For further information on land use, see the mineral resources and reserves statement and appendix 1 to this report.
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 of 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 2022. To state the Mineral Resources and Mineral Reserves estimates for 31 December 2022, the budgeted production for July 2022 to December 2022 has been subtracted from the total estimates. The Mineral Resources and Mineral Reserves information in the tables on the following pages is based on information compiled by a Competent Person (as defined by the SAMREC Code).
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 lay-out. 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. The status quo has remained the same since the application for a retention permit in Nov 2017. The DMR 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 3 years. Pending the outcome of the application no 3rd 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 and MG2 Chromitite Layer is being mined underground using trackless mining methods on a Bord-and-Pillar mining lay-out. 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.
The annual Mineral Resources and Mineral Reserves 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 Resources 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 change in targeted reef on the MG2 horizon being changed and the inclusion of Richmond and St George MG2 Resources. The net movement after mining depletion was 14.830Mt.
There is no material difference in the silica Mineral Resource estimate from December 2021 to December 2022 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.
There are no foreseen material risk factors that could affect the validity of the current Mineral Resources and Mineral Reserves 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.
The Competent Persons involved in the Abridged Mineral Resources and Mineral Reserves statement are:
| Competent Person | Job Description | Operation | Highest Qualification | Professional Affiliation | Years of Experience | Years with Alloys |
| Sulayman Yousuf Vaid | Group MRM | Head Office | ND Mine Survey | SAGC GTgMS0114 | 27 (Gold/Platinum/Chrome) | 15 |
| Lindiwe Nkambule | MRM ECM | ECM | Bsc Hons Geology | SACNASP 121632 | 7 (Platinum/Chrome) | 7 |
| Mogomotsi Maputle | MRM WCM | WCM | Bsc Hons Geology | SACNASP 400071/14 | 20 (Platinum/Chrome) | 15 |
| Dean Richards | Director | Obsidian Consulting | Bsc Hons Geology | SACNASP 400190/08 | 31 (Gold/Diamonds/ Platinum/Chrome/Iron Ore) | 17 |
For the complete Mineral Resources and Mineral Reserves Statement including definitions of the categorisation of mineral resources and reserves as per the SAMREC Code 2016, 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 2022.
See the directors' report and the statement on mining rights and mining operations
| Measured Mineral Resources |
Indicated Mineral Resources |
Measured and Indicated Resources |
Inferred Mineral Resources |
|||||||||
| Name of operation | Attributable Portion |
Mining method |
Commodity | 31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 | 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 | 42.59 | 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 | 42.60 | 42.6 | 42.5 | 42.5 | – | – | ||||
| Kroondal | 20.5% | UG/OC | Ore (mt) | 9.104 | 9.308 | 0.65 | 0.61 | 9.76 | 9.92 | – | – | MM/DR |
| Cr2O3 (%) | 42.72 | 42.79 | 41.54 | 41.5 | 42.6 | 42.7 | – | – | ||||
| Kroondal Gemini | 20.5% | UG/OC | Ore (mt) | 12.544 | 13.793 | 0.80 | 0.85 | 13.35 | 14.64 | – | – | MM/DR |
| Cr2O3 (%) | 42.09 | 42.30 | 41.18 | 41.3 | 42.0 | 42.2 | – | – | ||||
| Marikana East | 20.5% | UG | Ore (mt) | 4.593 | 4.459 | 0.53 | 0.52 | 5.12 | 4.98 | – | – | MM/DR |
| Cr2O3 (%) | 42.24 | 42.23 | 41.85 | 41.9 | 42.2 | 42.2 | – | – | ||||
| Klipfontein/Waterval | 20.5% | UG | Ore (mt) | 13.105 | 13.235 | 29.90 | 29.69 | 43.00 | 42.93 | 92.7 | 92.6 | MM/DR |
| Cr2O3 (%) | 42.01 | 42.01 | 41.96 | 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 (%) | – | – | 40.53 | 40.5 | 40.5 | 40.5 | – | – | ||||
| Townlands Extension 9 | 20.5% | UG | Ore (mt) | – | – | 12.94 | 12.94 | 12.94 | 12.94 | – | – | MM/DR |
| CCr2O3 (%) | – | – | 41.39 | 41.4 | 41.4 | 41.4 | – | – | ||||
| Total – LG6 and MG1 | Ore (mt) | 58.55 | 60.00 | 64.64 | 64.43 | 123.19 | 124.43 | 93.4 | 93.3 | |||
| Cr2O3 (%) | 41.98 | 42.05 | 41.5 | 41.5 | 41.7 | 41.8 | 42 | 42 | ||||
| Western Chrome Mines – Tailings | ||||||||||||
| Kroondal Dam | 20.5% | Tailings | (mt) | – | – | – | – | – | – | 1.89 | 1.88 | MM |
| Cr2O3 (%) | – | – | – | – | – | – | 17.2 | 17.2 | ||||
| Waterval East Dam | 20.5% | Tailings | (mt) | – | – | – | – | – | – | 0.60 | 0.94 | MM |
| Cr2O3 (%) | – | – | – | – | – | – | 14.9 | 18.5 | ||||
| Waterval West Dam | 20.5% | Tailings | (mt) | – | – | – | – | – | – | – | 0.26 | MM |
| Cr2O3 (%) | – | – | – | – | – | – | – | 16.9 | ||||
| Cashan Dam | 20.5% | Tailings | (mt) | – | – | – | – | – | – | 0.03 | 0.03 | MM |
| Cr2O3 (%) | – | – | – | – | – | – | 16.9 | 16.9 | ||||
| Total Tailings | (mt) | – | – | – | – | – | – | 2.52 | 3.12 | |||
| Cr2O3 (%) | – | – | – | – | – | – | 16.7 | 17.5 | ||||
Eastern Chrome Mines — MG1 Chromitite Layer
| Thorncliffe | 20.5% | UG/OC | Ore (mt) | 39.329 | 44.028 | 3.55 | 3.47 | 42.88 | 47.50 | – | – | LUN/DR |
| Cr2O3 (%) | 40.39 | 40.03 | 40.7 | 40.8 | 40.4 | 40.1 | – | – | ||||
| Helena | 20.5% | UG/OC | Ore (mt) | 21.312 | 21.473 | 11.38 | 13.29 | 32.69 | 34.76 | 8.281 | 9.6 | LUN/DR |
| Cr2O3 (%) | 39.88 | 39.81 | 38.5 | 38.5 | 39.4 | 39.3 | 38 | 38 | ||||
| De Grooteboom | 20.5% | UG/OC | Ore (mt) | 1.037 | 1.037 | 0.50 | 0.50 | 1.54 | 1.54 | – | – | LUN/DR |
| Cr2O3 (%) | 40.22 | 40.22 | 40.3 | 40.3 | 40.2 | 40.2 | – | – | ||||
| Richmond | 20.5% | UG | Ore (mt) | 7.461 | 1.559 | 17.28 | 22.27 | 24.74 | 23.83 | 26.536 | 25.9 | LUN/DR |
| Cr2O3 (%) | 40.53 | 41.10 | 40.8 | 41.0 | 40.7 | 41.0 | 41 | 41 | ||||
| St George | 20.5% | UG | Ore (mt) | 0.716 | 0.716 | 4.73 | 4.45 | 5.44 | 5.17 | 13.442 | 18.6 | LUN/DR |
| Cr2O3 (%) | 40.41 | 40.41 | 39.4 | 39.4 | 39.5 | 39.5 | 39 | 39 | ||||
| Total – MG1 | Ore (mt) | 69.855 | 68.813 | 37.44 | 43.99 | 107.29 | 112.81 | 48.3 | 54.1 | |||
| Cr2O3 (%) | 40.24 | 39.99 | 39.9 | 40.0 | 40.1 | 40.0 | 40 | 40 | ||||
| Eastern Chrome Mines – MG2 Chromitite Layer | ||||||||||||
| Thorncliffe | 20.5% | UG/OC | Ore (mt) | – | – | 17.64 | – | 17.64 | – | 32.5 | 41.8 | LUN/DR |
| Cr2O3 (%) | – | – | 35.1 | – | 35.1 | – | 36 | 38 | ||||
| Helena | 20.5% | UG/OC | Ore (mt) | – | – | – | – | – | – | 49.2 | 85.4 | LUN/DR |
| Cr2O3 (%) | – | – | – | – | – | – | 40 | 38 | ||||
| Richmond | 20.5% | UG | Ore (mt) | – | – | – | – | – | – | 31.0 | – | LUN/DR |
| Cr2O3 (%) | – | – | – | – | – | – | 36 | – | ||||
| St George | 20.5% | UG | Ore (mt) | – | – | – | – | – | – | 17.52 | – | LUN/DR |
| Cr2O3 (%) | – | – | – | – | – | – | 39 | – | ||||
| Total – MG2 | Ore (mt) | – | – | – | – | – | – | 130.3 | 127.2 | |||
| Cr2O3 (%) | – | – | – | – | – | – | 38 | 38 | ||||
| Total – MG1 and MG2 | Ore (mt) | 69.855 | 68.813 | 55.08 | 43.99 | 124.81 | 112.81 | 178.5 | 181.3 | |||
| Cr2O3 (%) | 40.24 | 39.99 | 38.4 | 40.0 | 39.4 | 40.0 | 38 | 38 | ||||
| Eastern Chrome Mines – Tailings | ||||||||||||
| Thorncliffe Dam | 20.5% | Tailings | (mt) | – | – | – | – | – | – | 4.88 | 4.73 | SYV |
| Cr2O3 (%) | – | – | – | – | – | – | 18.9 | 19.6 | ||||
| Helena Paste | 20.5% | Tailings | (mt) | – | – | – | – | – | – | 0.16 | 0.21 | SYV |
| Cr2O3 (%) | – | – | – | – | – | – | 17.2 | 17.2 | ||||
| Total Tailings | 20.5% | Tailings | (mt) | – | – | – | – | – | – | 5.04 | 4.94 | |
| Cr2O3 (%) | – | – | – | – | – | – | 18.8 | 19.5 | ||||
| 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: |
| SYV — Sulayman Yousuf Vaid, Glencore Operations SA, (SAGC — 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. |
| LUN — Lindiwe Unity Nkambule, Glencore Operations SA, Eastern Chrome Mines, (SACNASP — 121635). Responsible for Mineral Resources and Mineral Reserves. |
| DR — Dean Richards, Obsidian Consulting Services (SACNASP — 40019 cation and construction of tonnage and grade block models and reporting of tonnage and grades from block models. |
| Proved Ore Reserves |
Probable Ore Reserves |
Total Ore Reserves |
||||||||
| Name of operation | Attributable portion |
Mining method | Commodity | 31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 | Competent Person |
| Western Chrome Mines – LG6 Chromitite Package and MG1 Chromitite Layer | ||||||||||
| Waterval | 20.5% | UG | Ore (mt) | – | – | – | – | – | – | MM/DR |
| Cr2O3 (%) | – | – | – | – | – | – | ||||
| Marikana West | 20.5% | UG | Ore (mt) | – | – | – | – | – | – | MM/DR |
| Cr2O3 (%) | – | – | – | – | – | – | ||||
| Kroondal | 20.5% | UG/OC | Ore (mt) | 2.078 | 2.251 | 0.61 | 0.53 | 2.69 | 2.78 | MM/DR |
| Cr2O3 (%) | 29.19 | 29.11 | 28.2 | 28.2 | 29.0 | 28.9 | ||||
| Kroondal Gemini | 20.5% | UG/OC | Ore (mt) | 6.632 | 7.972 | 0.65 | 0.69 | 7.29 | 8.66 | MM/DR |
| Cr2O3 (%) | 30.52 | 30.78 | 29.9 | 30.3 | 30.5 | 30.7 | ||||
| Marikana East | 20.5% | UG | Ore (mt) | – | – | – | – | – | – | MM/DR |
| Cr2O3 (%) | – | – | – | – | – | – | ||||
| Klipfontein/Waterval | 20.5% | UG | Ore (mt) | 0.075 | 0.026 | 0.09 | 0.17 | 0.17 | 0.20 | MM/DR |
| Cr2O3 (%) | 28.21 | 28.49 | 28.0 | 28.4 | 28.1 | 28.4 | ||||
| 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) | 8.786 | 10.249 | 1.94 | 1.98 | 10.72 | 12.22 | |||
| Cr2O3 (%) | 30.19 | 30.41 | 28.1 | 28.3 | 29.8 | 30.1 | ||||
| Eastern Chrome Mines – MG1 Chromitite Layer | ||||||||||
| Thorncliffe | 20.5% | UG/OC | Ore (mt) | 17.552 | 20.224 | 2.51 | 2.51 | 22.73 | 22.73 | LUN/DR |
| Cr2O3 (%) | 34.71 | 34.78 | 32.9 | 32.9 | 34.6 | 34.6 | ||||
| Helena | 20.5% | UG/OC | Ore (mt) | 1.506 | 1.667 | – | – | 1.67 | 1.67 | LUN/DR |
| Cr2O3 (%) | 32.46 | 29.43 | – | – | 29.4 | 29.4 | ||||
| Richmond | 20.5% | UG/OC | Ore (mt) | 3.745 | 1.256 | 1.46 | 2.57 | 5.2 | 3.82 | LUN/DR |
| Cr2O3 (%) | 35.40 | 34.69 | 33.5 | 32.6 | 34.9 | 33.3 | ||||
| St George | 20.5% | UG/OC | Ore (mt) | – | – | – | – | – | – | LUN/DR |
| Cr2O3 (%) | – | – | – | – | – | – | ||||
| Total – MG1 | Ore (mt) | 22.803 | 23.147 | 5.08 | 5.08 | 28.23 | 28.23 | |||
| Cr2O3 (%) | 34.67 | 34.39 | 32.7 | 32.7 | 34.1 | 34.1 | ||||
| Eastern Chrome Mines – MG2 Chromitite Layer | ||||||||||
| Thorncliffe | 20.5% | UG/OC | Ore (mt) | – | – | 3.59 | – | 3.59 | – | LUN/DR |
| Cr2O3 (%) | – | – | 26.9 | – | 26.9 | – | ||||
| Total – MG1 and MG2 | Ore (mt) | 22.803 | 23.147 | 7.59 | 5.08 | 26.8 | 28.23 | |||
| Cr2O3 (%) | 34.7 | 34.4 | 30.3 | 32.7 | 34.5 | 34.1 | ||||
| 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: |
| 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. |
| SYV — Sulayman Yousuf Vaid, Glencore Operations SA, (SAGC — GT g 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. |
| LUN — Lindiwe Unity Nkambule, Glencore Operations SA, Eastern Chrome Mines, (SACNASP — 121635). Responsible for Mineral Resources and Mineral Reserves. |
Statement by Competent Person
This summary has been reviewed and the relevant data extracted and compiled by Sulayman Yousuf Vaid (SYV). SYV is the Lead Competent Person, registered with the South African Geomatics Council (SAGC, P.O Box 752799, Garden View, 2047), Reg. No. -GT gMS 0114 and holds a National Diploma in Mine Surveying. SYV is a Mine Surveyor with 28 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. SYV 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
39 Melrose Blvd, Birnam, Sandton, 2076
PO Box 2131, Rustenberg 0300, NW, RSA
Tel: (014) 590 2416
17 March 2023
| See appendix 1 to this report and our online Integrated Annual Report 2022 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. |
