A brief profile

We are listed on the JSE Limited in the General Mining sector under the share code MRF. Currently, the main focus of our business is on the 20.5% participation of our wholly owned subsidiary, Merafe Ferrochrome and Mining Proprietary Limited, in the earnings before tax, depreciation and amortisation (EBITDA) of the Glencore-Merafe Chrome Venture (the Venture), in which Glencore has a 79.5% participation.

Merafe and Glencore South Africa operations (Glencore) formed the Venture in July 2004 when we pooled our chrome operations to create the largest ferrochrome producer in the world.

Merafe’s commitment to empowerment was recognised by the Financial Mail’s Top Empowerment Companies Survey in 2012 which rated Merafe as the most empowered company in the South African mining sector in 2012.

Our commitment to good governance and sustainability is reflected in our inclusion in the JSE Socially Responsible Investment (SRI) Index since its inception in 2003.

Our business model and strategy

Ferrochrome

The aim of our business model and strategy is to ensure our ferrochrome interests are profitable and sustainable and that they add value to all our shareholders. We achieve this by:

• extracting chrome ore from the Venture’s mines and beneficiating it in its smelters in a safe and cost-efficient manner
• investing in projects that include the Bokamoso and Tswelopele pelletising and sintering plants and the Lion ferrochrome plant Phases I and II that improve the energy efficiency and cost effectiveness of its ferrochrome operations
• employing the Venture’s proprietary Premus technology to ensure it is the lowest-cost producer of ferrochrome in South Africa and, despite rising energy costs in South Africa, remains in the lowest quartile of the global ferrochrome production cost curve
• using the flexibility provided by the Venture’s variety of technologies to meet changing operating circumstances and customer requirements.

Diversification

Our medium-term objective is not only to grow and improve our ferrochrome operations but to grow through diversification. We are engaging with our stakeholders in this regard and aim to diversify in the medium term.

• [Editor:Yueleilei]