About this report

We are pleased to present to you the integrated annual report for the Merafe Group, which includes Merafe Resources Limited (Merafe), a company listed on the JSE, Merafe Ferrochrome and Mining Proprietary Limited (Merafe Ferrochrome) and its subsidiaries for the year ended 31 December 2015. The scope of this report also includes the Glencore-Merafe Chrome Venture (the Venture). Save for a change in our major shareholder as set out in this report, there has been no significant change in our size, structure or products and there are no specific limitations on the scope or boundary of this report.

We published our previous integrated annual report, for the reporting period ended 31 December 2014, in 2015. As we did last year, the summarised financial and sustainability information and the AGM Notice, will be sent to shareholders and this integrated annual report will be available on our website: www.meraferesources.co.za. Printed copies of the integrated annual report will be available on request from the Company Secretary.

We welcome the opportunity that an integrated approach to reporting offers us to break down reporting silos and provide a broader explanation of our performance, underpinned by a strategic focus, connectivity of information, a future orientation and an inclusive and responsible approach to stakeholders.

We use the capitals model (natural, human, social, manufactured and financial capital) for our reporting, as recommended in the International Integrated Reporting Committee’s Integrated Reporting Framework.

We depend on a variety of resources and relationships for our success. The extent to which we are depleting these or building them up has an important impact on the availability of the resources at our disposal and the relationships that support our long-term viability. The capitals model, by seeing these resources and relationships in terms of ‘capital’, provides us with a basis for understanding sustainability in terms of the economic concept of wealth creation or ‘capital’ and encourages us to consider how wider environmental and social issues can affect our long-term profitability.

In addition to following the recommendations contained in King III, the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code) and the JSE Limited Listings Requirements, we are guided by the Global Reporting Initiative’s (GRI) G4 Guidelines and our internally developed policies and procedures, in terms of measuring our progress towards sustainability.

KPMG Inc. audits our annual financial statements.

Our annual financial statements are in compliance with International Financial Reporting Standards (IFRS) and are available on our website. An independent auditor's report is published in the annual financial statements.

The data and information relating to the Venture as set out in this report is subject to the annual internal and external reviews, audits and processes set out on Sustainability review and assurance to ensure that the information relating to the Venture in this report is accurate and reliable.

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This report has been produced in accordance with the Global Reporting Initiative (GRI) Guidelines
  We would welcome your feedback on our reporting for 2015 and any suggestions you have in terms of what you would like to see incorporated in our report for 2016. Please contact our Financial Director, Kajal Bissessor at kajal@meraferesources.co.za.



The five capitals model we have adopted provides a basis for understanding sustainability in terms of the economic concept of wealth creation or ‘capital’. A sustainable organisation will maintain and where possible enhance these stocks of capital assets, rather than deplete or degrade them. The model allows business to broaden its understanding of financial sustainability by allowing business to consider how wider environmental and social issues can affect long-term profitability.


Certain statements in this report constitute ‘forward looking statements’. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performances, objectives or achievements of Merafe Resources Limited and its subsidiary companies, as well as the industries in which it operates, to be materially different from future results, performances, objectives or achievements expressed or implied by these forward looking statements.

The performance of the Merafe Group is subject to the effect of changes in commodity prices, currency fluctuations, uncertainty around the supply of electricity, the risks involved in mining and smelting operations and the operating procedures and performance of the Venture. The Company undertakes no obligation to update publicly or to release any revisions to these forward looking statements to reflect events or circumstances after the date of publication of these pages or to reflect the occurrence of unanticipated events.