Merafe updates on its ferrochrome smelting operations

Merafe advised that the Company has, through its chrome Pooling and Sharing Venture with Glencore Operations South Africa Proprietary Limited (“PSV”), initiated a business review process in respect of its ferrochrome smelting business and is assessing potential measures to address the ongoing market challenges.

The Business Review follows sustained pressure from the prolonged economic downturn in the global ferrochrome market, which pressures are not expected to ease in the near to medium term. Should the PSV not be able to identify viable solutions to sustain profitability, it will begin to suspend certain of its ferrochrome furnaces in May 2025, thereby resulting in a significant reduction in Merafe’s ferrochrome production. The PSV is actively working with regulatory authorities to mitigate any continued adverse impacts and will continue to explore all viable alternatives in partnership with organised labour. Additionally, the PSV has engaged with its suppliers to identify cost-saving measures to help improve the current situation. Further updates will be issued as appropriate.