Merafe Resources Limited (JSE:MRF)

Zanele Matlala
Market Cap (AUD): 4.1B
Sector: Basic Materials
Last Trade (AUD): 1.63 -0.01 (-0.61%)
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1. About

Merafe Resources Limited (JSE:MRF) is in the business of Ferrochrome production. In 2004 Merafe and Glencore pooled their chrome operations to create the largest ferrochrome producer in the world.

Merafe Ferrochrome and Mining Proprietary Limited is a wholly owned subidiary of Merafe. Merafe retains 20.5% of the earnings before interest, tax depreciation and amortisation (EBITDA) of the Glencore-Merafe Chrome Venture (the Venture) with Glencore receiving the remaining 79.5%.


Merafe's strategy is to ensure that its ferrochrome interests are profitable and sustainable and that they add value to all stakeholders. The company aims to 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 such as the Bokamoso and Tswelopele pelletising and sintering plants and the Lion ferrochrome plant Phases I and II that improve the energy and cost efficiency of the Venture's ferrochrome operations;
  • employing the Venture’s proprietary Premus technology to ensure that 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; and
  • focusing on reducing costs at the operations and head office.


The Company may also consider acquisitions outside of ferrochrome on an opportunistic basis.

2. Business model

3. Strategy

4. Markets

5. Competition

6. History

7. Team

8. Financials

9. Risk