By: Creamer media

The remaining terms of the marketing agreement are unchanged. The agreement initially started on May 22, 2014, and has subsequently been amended, supplemented and/or extended from time to time.

In 2014, Glencore International was appointed the exclusive chrome ore marketing agent for Merafe’s chrome pooling and sharing venture (PSV) with Glencore South Africa, and has the sole right to sell, on the PSV’s behalf, the PSV’s chrome ore production on the terms set out in the marketing agreement.

As consideration for the marketing of the chrome ore, the PSV pays Glencore International a sales commission based on the sales revenue (invoice value) derived from the sale of chrome ore.

Merafe’s proportionate contribution towards the commission amounts to 20.5%, reflecting its 20.5% participation in the earnings before interest, taxes, depreciation and amortisation of the PSV, with the remaining 79.5% being borne by Glencore South Africa.