During the current year, management reviewed its related party relationships in accordance with IAS 24: Related Party
Disclosures. The Glencore plc Group was identified as a related party taking into consideration the shareholding and related
significant influence coupled with the substance of the relationship. Significant transactions and balances with all entities within
the Glencore plc Group are therefore disclosed together with the comparative figures.
All related party transactions relate to Merafe's attributable 20.5% interest in the Venture. Income and receivable amounts are
shown in brackets. There are no outstanding commitments at the reporting date.
| Name of related party |
Description of relationship |
Transactions and balances |
| The Venture |
In July 2004, GOSA and Merafe Ferrochrome pooled and shared ferrochrome assets to form the Venture. |
Refer 32.2 for the amounts that are included in the consolidated financial statements of the Group. |
| Merafe Chrome and Alloys Proprietary
Limited |
Merafe Chrome is a wholly-owned
subsidiary of Merafe. |
No dividends were paid to Merafe by
Merafe Chrome (2021: Rnil). |
| Merafe Ferrochrome and Mining Proprietary Limited |
Merafe Ferrochrome is a wholly-owned subsidiary of Merafe Chrome. |
Merafe Resources charges Merafe Ferrochrome a management fee as per note 19. Dividends declared by Merafe Ferrochrome was R850m (2021: Rnil). At the reporting date a loan of R965m (2021: R985m) is owing by Merafe Ferrochrome. |
| Merafe Kroondal Rehabilitation Trust (SE) |
The Trust, which was registered on 31 May 2006, was established to provide funds for the rehabilitation of land involved in any prospecting or mining operations of Merafe Ferrochrome of the Kroondal mine and to discharge any liability which might arise in terms of the Atmospheric Pollution Prevention Act of 1965, the Environment Conservation Act 45, No 50 of 1991, the Water Act, No 54 of 1956 and any such other legislation as may be enacted in the future. The environmental obligations and corresponding liability remain the sole responsibility of the Venture. The trust is a subsidiary of Merafe Resources and is
consolidated. |
A loan account is recognised with Merafe Resources of R108k (2021: R108k) which relates to the payment of audit fees. |
| Industrial Development Corporation of South Africa Limited (IDC) |
The IDC holds 21.9% of the issued share capital of Merafe Resources Limited and has the ability to exercise significant influence over Merafe Resources Limited as a result of its shareholding. |
The IDC received the non-executive director's fees for Mr D McGluwa as disclosed in note 33. The IDC received dividends declared by Merafe Resources. At the reporting date there are no amounts due to the IDC. |
| Glencore (Nederland) B.V. (GN) |
GN holds 28.8% of the issued share capital of the Company and has the ability to exercise significant influence over the Company as a result of its
shareholding. |
GN received dividends declared by Merafe Resources. At the reporting date there are no amounts due to the GN. |
| Mr A Mngomezulu, Mr J McIaughlan, Mr K Tlale, Ms M Vuso, Ms N Mabusela-Aikhuere, Mr D Gluwa, Mr D Green, Ms Z Matlala, Mr D Chocho |
Directors of Merafe Resources Limited. |
Refer to note 33 for transactions with directors. |
| Glencore Limited (Stamford) (GLS) # |
GLS acts as the Venture's exclusive marketing agent to sell ferrochrome on its behalf and acts as distributor in the USA and Canada. |
Sale of ferrochrome R542m (2021: R583m). Commission expense R17m (2021: R13m). Interest expense R2m (2021: R1m). Receivable at the reporting date R160m (2021: R137m) which is reduced as and when GLS receives funds from customers and receivable 120 days after bill of lading. |
| Glencore International AG (GIAG) # |
GIAG acts as the Venture's exclusive marketing agent to sell ferrochrome and chrome ore on its behalf. The Venture purchases various raw materials from GIAG on an ongoing basis. The Venture sells chrome ore to GIAG on an ad-hoc basis. |
Commission expense on sale of ferrochrome and chrome ore R314m (2021: R316m).
Marketing fee expense R2m (2021: R2m). Interest income R8m (2021: R5m).
Purchase of raw materials R332m (2021: R295m). Balance owing at the reporting date R29m (2021: R36m) payable on confirmation of final sales. |
| Char Technology (Pty) Ltd (Chartech)
# |
Chartech sells raw materials to the
Venture. |
Purchase of raw materials R134m (2021:
R118m). Balance owing at the reporting date R17m (2021: R11m) payable 30 days from statement date. |
| Glencore AG (GAG) # |
The Venture purchases various raw materials from GAG on an ongoing
basis. The Venture sells chrome ore to GAG on an ad-hoc basis. |
Sale of chrome ore R2m (2021: Rnil). Purchase of raw materials R63m (2021:
Rnil). At the reporting date there was no amounts due to GAG. |
| Glencore Operations South Africa (Pty)
Ltd (GOSA) # |
GOSA is Merafe Ferrochrome partner in
the Venture. |
Employee costs R165m (2021: R148m).
Head-office costs R28m (2021: R25m). Training costs R8m (2021: R6m). Lion housing R20m (2021: R18m). Share service centre costs R10m (2021: R9m). Costs recovered from PGM tailings R3m (2021: R3m). Balance owing at the end of the year R18m (2021: R14m) payable 10 days after month end. GOSA received the non-executive director's fees for Mr D Green as disclosed in note 33. At the reporting date a loan of R122m (2021: R59m) is owing by Merafe Ferrochrome. |
| Glencore Property Management Company (Pty) Ltd (GPMC) # |
GPMC provides rental property to the Venture. |
Rental of CSI offices R0.4m (2021: R0.02m). Balance owing at the reporting period R0.04m (2021: R0.3m) payable 30
days from statement date. |
| Access World (South Africa) (Pty) Ltd (Access) # |
Access is a warehousing company that provides storage facilities of ferrochrome and chrome ore to the Venture. |
Storage of ferrochrome and chrome ore R1m (2021: R5m). Balance owing at the reporting date Rnil (2021: R0.45m) payable 30 days after statement date. |
| Glencore Holdings South Africa (Pty)
Ltd (GHSA) # |
GHSA offers the Central Treasury
Function for the Venture. |
Cash deposits of R351m (2021: R300m)
and rehabilitation investment of R301m (2021: R189m). |
| Impala Chrome (Pty) Ltd (Impala) |
Impala is an associate jointly controlled by the Venture. |
Revenue from logistics and marketing and maintenance contracts R32m (2021: R27m). Receivable at the reporting date
R5m (2021: R3m). |
| Astron Energy (Pty) Ltd (Astron) # |
Astron sells fuel to the Venture. |
Purchases of R39m (2021: R25m). Payable of R3m (2021: R1m) at the reporting date. |
| Unicorn Chrome (Pty) Ltd (Unicorn) |
Unicorn is a jointly controlled operation
by the Venture. |
Shareholder loan receivable at the
reporting date of R5m (2021: R4m) |
