Natural capital

  • climate change and energy
  • environment
  • Abridged Mineral Resources and Mineral Reserves Statement
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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.

Environmental Policy Statement

"Our ambition is to be a leader in environmental performance, and to minimise harm to the environment, through environmental stewardship and responsible resource management across our global operations."

The full Environmental Policy of Glencore and the Venture, is on our website

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NATURAL CAPITAL FOCUS AREAS
ENERGY
  • Pricing and the availability of electricity
  • Business continuity and profitability
  • Investing in new technologies to increase energy efficiency
CLIMATE CHANGE
  • Environmental aspects of climate change
  • The Venture's production of significant quantities of indirect and direct greenhouse gas emissions ("GHGs")
  • Investing in new technologies to reduce emissions
HEALTH AND SAFETY
  • Safety of employees
  • Health of employees
  • Training
  • Remuneration
WATER
  • Use and availability
  • Recycling
WASTE
  • Incidents and compliance
  • Disposal and recycling
MATERIAL ISSUES
MI1
MI2
MI4
MI5
MI10
MI11

 

Natural capital: climate change and energy

KEY POINTS 2023

The CO2e generated per tonne of ferrochrome produced was

+5.30tCO2e and
*5.68tCO2e

(2022: 5.35tCO2e and 5.74tCO2e)

+Location / *Market based

The energy use per tonne of ferrochrome produced was

15.0GJ

(2022: 14.5GJ)

Stakeholder impact

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.

Managing climate change and carbon emissions

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’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. To align with the IPCC’s 6th Assessment Report (“AR6”), instead with the IPCC’s 5th (“AR5”), the Global Warming Potentials (“GWPs”) were updated back to the 2019 baseline. In 2022 the Venture embarked on a process to improve emission report with respect to our Scope 2 emissions. In that regard Scope 2 emissions will now be reported on a market-based and location-based basis. This will enable the Venture to show the impact of renewable energy generation and purchases on our Scope 2 emissions as the Venture may decarbonise faster than the country’s grid. Previously, the Venture only reported location-based emissions. 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.

  • Scope 2 Location based is GHG emission based on average energy generation emission factors for defined locations, including local sub-national or national boundaries (using mostly grid-average emission factors).
  • Scope 2 Market based is GHG emissions based on GHG emissions emitted by the generators from which the asset contractually purchases electricity bundled with instruments or unbundled instruments on their own, and for which a specific emission factor is known.

For 2023 the location based emission factor obtained from the IEA was 0.9001kgCO2 e/kWh. The market based emission factor was 1.01kgCO2e/kWh.

A representative of the Venture served on the council of the Energy Intensive User Group during 2023. 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 2023, 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.

THE VENTURE’S FOCUS FOR 2024

Climate Change and Energy Strategy

  • The Venture has a systematic approach to decarbonisation through its Climate Change and Energy Strategy.
  • Strategic elements include managing operational footprint, reducing emissions, collaborating with supply chains and transparent reporting.

Emission Reduction Targets

  • The Venture aligns with Glencore's target to reduce total emissions by 15% by 2026 and 50% by 2035 (based on 2019 levels).
  • These targets align with international climate change scenarios and pathways.

Scope 3 Emissions Calculation

  • Rule Book to accurately calculate Scope 3 emissions, aligned with the Venture's Greenhouse Gas Protocol has been developed.
  • The Scope 3 emissions have been calculated for 2019 to 2022. The 2023 data will be completed by the end of May 2024, Once completed, the Scope 3 emissions from 2019 to end 2024 will be available on the Merafe website.

Independent Verification

  • Scope 1 and Scope 2 GHG emissions of the Venture are independently verified annually, complying with legal requirements.

Climate Change and Energy Strategy

  • The Venture is compiling information on business costs associated with climate change.

Business Costs and Reporting

  • ESG considerations are incorporated into performance KPIs related to executive employee remuneration policies.

See the Venture’s Renewable Energy 2024 Update.

RENEWABLE ENERGY STRATEGY

The renewable energy strategy to support 50% total CO2e emission reduction by 2035 (as set out above) is reliant on five pillars.

01

RENEWABLE ENERGY

Offsite renewable energy: Wind and solar power transmitted via Eskom network.

Onsite renewable energy: Solar power generated at operations based on geographic location.

02

CO-GENERATION

Integrated heat and gas from operations to produce electricity

03

ESKOM OPTIMISATION

Utilise available short-term Negotiated Pricing Agreement (NPA) initiatives

04

PROCESS ENERGY IMPROVEMENT

Optimise processes to be as energy efficient as possible

05

ENERGY STORAGE

Long duration energy storage

Understanding the Venture's carbon footprint

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.

The risks associated with climate change

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

Restatements of prior-year data occur due to improvements in testing and/or methodology. Any restatement of prior-year data relating to energy usage and emissions set out below of this report is not significant or material.

The Venture's energy consumption

Total energy consumption in the Venture's operations decreased as a result of lower production in 2023. The energy usage per tonne of ferrochrome produced increased from 14.50GJ/tonne to 15.04GJ/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.

The Venture's energy usage

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Total energy use per tonne of ferrochrome produced

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The Venture's emissions

To align with the IPCC's 6th Assessment Report (AR6) instead of the IPCC's 5th (AR5) the Global Warming Potentials (GWPs) were updated back to the 2019 baseline. The Venture's total Scope 1 (direct) and Scope 2 (indirect) emissions decreased in 2023 as a result of lower production. The CO2e generated per tonne of ferrochrome produced decreased in 2023. 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.

GHG emissions (tCO2e)   Location-based Market-based
2021 Scope 1 3 958 362 3 958 362
Scope 2 5 784 249 6 481 031
Total 9 742 610 10 439 393
2022 Scope 1 3 999 688 3 999 688
Scope 2 6 014 144 6 738 620
Total 10 013 832 10 738 308
2023 Scope 1 3 239 639 3 239 639
Scope 2 4 503 662 5 059 058
Total 7 743 301 8 298 697

Total CO2e generated per tonne of ferrochrome produced

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In 2023, the Venture commenced a project to accurately calculate its Scope 3 emissions. The project has been completed and a third-party independent specialist is reviewing the data collection methodologies to determine compliance with the Greenhouse Gas Emissions Protocols. This work will be completed by the end of May 2024. Thereafter, the Scope 3 footprint from 2019 to 2023 will be disclosed in Glencore's Annual Climate Report and the Ventures Scope 3 emissions data will be uploaded to the Merafe website.

Natural capital: environment

Environment includes the natural resources and processes needed by an organisation to produce its products.

NATURAL CAPITAL ENVIRONMENT FOCUS AREAS
MATERIAL ISSUES
  • Water
  • Environmental incidents
  • NOx SOx emissions
  • Waste
  • Biodiversity and land use

This section of our report focuses on the Venture's environmental approach, impact and performance. We rely on the Venture's effective environmental policies and procedures to ensure our investment is managed responsibly.

MATERIAL ISSUES
MI1
MI4
MI5
MI6
KEY POINTS 2023

The Venture’s use of recycled or re-used water increased in 2023

Water conservation plans are in place at all the operations of the Venture

An integrated approach to environmental responsibilities

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.

Restatements

Restatements of prior-year data occur due to improvements in testing and/or methodology. Any restatement of prior-year data relating to water usage set out on this report is not significant or material.

Water

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.

Water use and availability

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 Venture's water usage

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Waste management and effluent and biodiversity management

Waste management and effluent

The mineral waste produced by the Venture in 2023 is set out below:

Mineral waste

Aligned with legislation, our trained employees conduct internal management of waste streams where appropriate. The Venture treats and disposes of waste responsibly and reuse and recycle waste where practicable. We continuously raise employee awareness with waste reduction and sorting with our multi-coloured refuse bin system.

Category 2023 tonnes 2022 tonnes 2021 tonnes
Mineral waste – produced 3 948 129 4 335 010 4 401 937
Non-mineral waste – disposed 8 261 9 714 12 601
Non-mineral waste – recycled 6 051 7 051 6 476

Biodiversity management

Biodiversity remains a key longer-term risk for the Venture. The Biodiversity management for the Venture focuses on shifting towards Task Force on Nature related Financial Disclosure (TNFD) requirements. TNFD is a risk management and disclosure framework. The Venture is currently on LEAP (Locate, Evaluate, Assess and Prepare) assessment. This process entails assessing the business footprint where are our direct assets and operations, nature interface, priority location identification, the corresponding risks to the Venture, evaluating dependencies and impacts, preparing to respond and report or disclose in line with the TNFD disclosure recommendations. The Venture is also modernising biodiversity surveys with eDNA sampling and analysis. Environmental DNA (eDNA) is traces of DNA that animals leave behind in the environment, particularly water, it can be thought of as fingerprints left in water or the natural environment. The first ever eDNA sample for the Venture was taken at Boshoek Smelter.

Incidents and compliance

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.

Restatements

Restatements of prior-year data occur due to improvements in testing and/or methodology. Any restatement of prior-year data relating to waste, environmental incidents and emissions set out on below of this report is not significant or material.

Environmental incidents

Category 2023 2022 2021 2020
Category 1 – negligible (causing negligible, reversible environmental impact, requiring very minor or no remediation) 78 59 53 38
Category 2 – minor (causing minor, reversible environmental impact, requiring minor remediation) 17 12 5 10
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 no environmental fines at its operations in 2023. There were no category 4 and 5 incidents in 2023.

NOx and SOx performance

The Venture's emissions

Category 2023
tonnes
2022
tonnes
2021
tonnes
2020
tonnes
NOx (oxides of nitrogen)
Stack emissions (total mass) 3 616 2 143 1 782 840
SOx (oxides of sulphur)
Stack emissions (total mass) 3 035 4 764 4 876 3 281
Total particulates
Stack emissions (total mass) 2 445 1 860 1 979 1 219

The increase in NOx in 2023 was mainly caused by loadshedding which impacted efficiency combustion and stability in the furnaces.

The decrease in SOx was mainly driven by low sulphur content in the type of reductants used and not directly related to production volumes.

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 comply with Atmospheric Emissions License Limits.

Product stewardship

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.

No products produced by the Venture, or their packaging materials, were reclaimed during 2023.

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.

Land use

For further information on land use, see the mineral resources and reserves statement and appendix 1.

Merafe's attributable portion of the quantitative data of the Venture set out from here to social capital and stakeholder responsiveness of this report is 20.5%.

Natural capital: 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 ("The SAMREC Code") 2016 Edition. 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 2023. To state the Mineral Resources and Mineral Reserves estimates for 31 December 2023, the budgeted production for July 2023 to December 2023 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).

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 lay-out. Kroondal will be targeting a production rate of 146ktpm for 2023. 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 November 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 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 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 Ventures silica deposit lies 15km west of Rustenburg. The quartzite is mined mainly to supply the Ventures 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 7.235 Mt. There is a gain of 2.060 Mt at Thorncliffe and Magareng mainly due to the addition of pillars and a gain at Kroondal Gemini of 0.921 Mt due to the addition of pillars.

The most significant changes in the year on year estimation of the Mineral Reserves is due to the mining depletion of 5.442 Mt of ROM. The net change excluding mining depletion is an increase of 2.191 Mt. There is a gain at Klipfontein and Richmond mainly due to a change in the five-year mining plan.

There is no material difference in the silica Mineral Resource estimates from December 2022 to December 2023 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.

Competent Persons

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 30 (Gold/Platinum/Chrome) 16
Lindiwe Nkambule MRM ECM ECM BSc Hons Geology SACNASP 121632 7 (Platinum/Chrome) 8
Mogomotsi Maputle MRM WCM WCM BSc Hons Geology SACNASP 400071/14 20 (Platinum/Chrome) 16
Dean Richards Director Obsidian Consulting BSc Hons Geology SACNASP 400190/08 33 (Gold/Diamonds/ Platinum/Chrome/
Iron Ore)
18

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 2023.

See directors’ report for the year ended 31 December 2023 for the Directors' 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 31.12.23 31.12.22 31.12.23 31.12.22 31.12.23 31.12.22 31.12.23 31.12.22 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 17.257 17.26 0.675 0.7 MM/DR
Cr2O3 (%) 41.31 41.31 42.59 42.6 41.4 41.4 43 43
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) 9.279 9.104 0.53 0.65 9.810 9.76 MM/DR
Cr2O3 (%) 42.69 42.72 41.46 41.5 42.6 42.6
Kroondal Gemini 20.5% UG/OC Ore (mt) 11.483 12.544 0.73 0.80 12.210 13.35 MM/DR
Cr2O3 (%) 42.09 42.09 41.03 41.2 42.0 42.0
Marikana East 20.5% UG Ore (mt) 4.591 4.593 0.53 0.53 5.117 5.12 MM/DR
Cr2O3 (%) 42.23 42.24 41.81 41.9 42.2 42.2
Klipfontein/Waterval 20.5% UG Ore (mt) 17.017 13.105 27.97 29.90 44.988 43.00 90.818 92.7 MM/DR
Cr2O3 (%) 42.01 42.01 41.98 42.0 42.0 42.0 42 42
Boshoek 20.5% UG/OC Ore (mt) 17.09 17.09 17.093 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 12.945 12.94 MM/DR
Cr2O3 (%) 41.39 41.4 41.4 41.4
Total – LG6 Ore (mt) 61.575 58.551 62.51 62.51 124.09 123.19 91.5 93.4
Cr2O3 (%) 41.98 42.05 41.5 41.5 41.7 41.7 42 42
Western Chrome Mines – Tailings
Kroondal Dam 20.5% Tailings (mt) 1.96 1.89 MM
Cr2O3 (%) 17.3 17.2
Waterval East Dam 20.5% Tailings (mt) 0.05 0.60 MM
Cr2O3 (%) 22.3 14.9
Waterval West Dam 20.5% Tailings (mt)
Cr2O3 (%)
Cashan Dam 20.5% Tailings (mt) 0.04 0.03 MM
Cr2O3 (%) 16.9 16.9
Total Tailings (mt) 2.04 2.52
Cr2O3 (%) 17.4 16.7
Bushveld Complex – Eastern Limb
Eastern Chrome Mines – MG1 Chromitite Layer
Thorncliffe 20.5% UG/OC Ore (mt) 37.367 39.329 3.37 3.55 40.734 42.88 LUN/DR
Cr2O3 (%) 40.39 40.39 40.7 40.7 40.4 40.4
Helena 20.5% UG/OC Ore (mt) 21.096 21.312 11.36 11.38 32.455 32.69 8.278 8.3 LUN/DR
Cr2O3 (%) 39.91 39.88 38.6 38.5 39.4 39.4 38 38
De Grooteboom 20.5% UG/OC Ore (mt) 1.037 1.037 0.50 0.50 1.541 1.54 LUN/DR
Cr2O3 (%) 40.22 40.22 40.3 40.3 40.2 40.2
Richmond 20.5% UG Ore (mt) 7.041 7.461 19.22 17.28 26.263 24.74 24.572 26.5 LUN/DR
Cr2O3 (%) 40.62 40.53 40.8 40.8 40.8 40.7 41 41
St George 20.5% UG Ore (mt) 0.715 0.716 4.73 4.73 5.440 5.44 13.442 13.4 LUN/DR
Cr2O3 (%) 40.41 40.41 39.4 39.4 39.5 39.5 39 39
Total – MG1 Ore (mt) 67.257 69.855 39.18 37.44 106.43 107.29 46.3 48.3
Cr2O3 (%) 40.26 40.24 40.0 39.9 40.2 40.1 40 40
Eastern Chrome Mines – MG2 Chromitite Layer
Thorncliffe 20.5% UG/OC Ore (mt) 18.29 17.64 18.288 17.64 32.0 32.5 LUN/DR
Cr2O3 (%) 35.1 35.1 35.1 35.1 36 36
Helena 20.5% UG/OC Ore (mt) 49.02 49.2 LUN/DR
Cr2O3 (%) 40 40
Richmond 20.5% UG Ore (mt) 31.0 30.96 LUN/DR
Cr2O3 (%) 36 36
St George 20.5% UG Ore (mt) 17.52 17.52 LUN/DR
Cr2O3 (%) 39 39
Total - MG2 Ore (mt) 18.3 17.639 18.3 17.639 129.5 130.3
Cr2O3 (%) 35 35.10 35 35.10 38 38
Total – MG1 and MG2 Ore (mt) 67.257 69.855 57.46 55.08 124.72 124.93 175.8 178.5
Cr2O3 (%) 40.26 40.24 38.4 38.4 39.4 39.4 38 38
Eastern Chrome Mines – Tailings
Thorncliffe Dam 20.5% Tailings (mt) 5.09 4.88 SYV
Cr2O3 (%) 18.8 18.9
Helena Paste 20.5% Tailings (mt) 0.09 0.16 SYV
Cr2O3 (%) 17.2 17.2
Total Tailings 20.5% Tailings (mt) 5.17 5.04
Cr2O3 (%) 18.8 18.8

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.

Merafe and Glencore have entered into an agreement for the treatment of current and historical tails at the Western and Eastern operations for extraction of PGMs. PGM values of the historic tails are not available as when deposition occurred no analysis on PGM grades were required. The current tailings have been analysed over the last 2-3 years and averages a PGM 4E grade of 5.15 g/t in the East and 3.1g/t in the West.

Competent Persons:

SYV – Sulayman Yousuf Vaid, Glencore Operations SA, (SAGC – GTgMS0114). 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 – 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 31.12.23 31.12.22 31.12.23 31.12.22 31.12.23 31.12.22 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) 2.321 2.078 0.510 0.609 2.83 2.69 MM/DR
Cr2O3 (%) 28.67 29.19 27.9 28.2 28.5 29.0
Kroondal Gemini 20.5% UG/OC Ore (mt) 5.394 6.632 0.593 0.654 5.99 7.29 MM/DR
Cr2O3 (%) 30.69 30.52 29.7 29.9 30.6 30.5
Marikana East 20.5% UG Ore (mt) MM/DR
Cr2O3 (%)
Klipfontein/Waterval 20.5% UG Ore (mt) 0.244 0.075 0.854 0.092 1.10 0.17 MM/DR
Cr2O3 (%) 28.13 28.21 28.3 28.0 28.2 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 – LG6 Ore (mt) 7.958 8.786 2.54 1.94 10.50 10.72
Cr2O3 (%) 30.02 30.19 28.0 28.1 29.5 29.8

Bushveld Complex – Eastern Limb

Eastern Chrome Mines – MG1 Chromitite Layer
Thorncliffe 79.5% UG/OC Ore (mt) 14.910 17.552 2.37 2.54 17.28 20.09 LUN/DR
Cr2O3 (%) 35.42 34.71 33.8 33.2 35.2 34.5
Helena 79.5% UG/OC Ore (mt) 1.499 1.506 1.50 1.51 LUN/DR
Cr2O3 (%) 29.19 32.46 29.2 32.5
Richmond 79.5% UG/OC Ore (mt) 3.524 3.745 2.943 1.46 6.47 5.20 LUN/DR
Cr2O3 (%) 35.66 35.40 33.3 33.5 34.6 34.9
St George 79.5% UG/OC Ore (mt)
Cr2O3 (%)
Total – MG1 Ore (mt) 19.933 22.803 5.31 4.00 25.25 26.80
Cr2O3 (%) 35.00 34.67 33.5 33.3 34.7 34.5
Eastern Chrome Mines - MG2 Chromitite Layer
Thorncliffe 79.5% UG/OC Ore (mt) 2.26 3.59 2.26 3.59 LUN/DR
Cr2O3 (%) 26.7 26.9 26.7 26.9
Total – MG1 and MG2 Ore (mt) 19.933 22.803 7.57 7.59 27.51 30.39
Cr2O3 (%) 35.00 34.67 31.5 30.3 34.0 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:

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, PO Box 752799, Garden View, 2047), Reg. No. -GT gMS 0114 and holds a National Diploma in Mine Surveying. SYV is a Mine Surveyor with 30 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. The Company declares that it has written confirmation from the Lead Competent Person that the information disclosed in terms of these paragraphs is compliant with the SAMREC Code and, where applicable, the relevant Section 12 and Table 1 requirements and that it may be published in the form and context in which it was intended.

Sulayman Yousuf Vaid

Glencore Operations South Africa Proprietary Limited
39 Melrose Blvd, Birnam, Sandton, 2076

PO Box 2131, Rustenburg 0300, NW, RSA
Tel: (014) 590 2415
Fax: (014) 590 2498

15 March 2024

See appendix 1 to this report and our online Integrated Annual Report 2023 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.

Restatements of the prior year data occur due to improvements in testing and/or methodology. Any restatement of prior year data in this report or in appendix 1 is not significant or material.