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Sibanye-Stillwater updates on plans for the Sandouville refinery and its pCAM project
Sibanye Stillwater Limited
Incorporated in the Republic of South Africa
Registration number 2014/243852/06
Share codes: SSW (JSE) and SBSW (NYSE)
ISIN – ZAE000259701
Issuer code: SSW
("Sibanye-Stillwater" or the "Group" or the "Company")
Website: www.sibanyestillwater.com
Sibanye-Stillwater updates on plans for the Sandouville refinery and its pCAM
project
Johannesburg, 21 August 2024: Sibanye-Stillwater (Tickers JSE: SSW and NYSE:
SBSW) acquired the Sandouville nickel refinery (Sandouville refinery) in 2022
with a view to producing nickel sulphate, targeting the European battery supply
chain.
Investigations into the potential for this highlighted the possible benefits of
producing pre-cursor cathode active material (pCAM) by repurposing the existing
Sandouville refinery chloride processing infrastructure. As announced in March
2024, this was confirmed by a scoping study, which confirmed the encouraging
potential to produce pCAM. A pre-feasibility study (PFS) is currently underway
to determine the viability of producing pCAM for the European battery ecosystem
through a novel, in-house process. A positive outcome from definitive
feasibility studies will enable a final investment decision on the repurposing
of the Sandouville refinery to pCAM production (the GalliCam project). To date,
the outlook for the GalliCam project is encouraging.
The novel process that has been conceptualised and designed by our internal team
in the European region will enable pCAM to be produced directly from mixed
hydroxide precipitate (MHP) in a chloride medium, allowing for fewer production
steps, lower energy consumption, reduced carbon emissions, and generation of
fewer waste products per tonne of pCAM compared to existing sulphate-based
processing routes. Utilising this chloride-based process is expected to
contribute towards competitive pCAM production costs from Sandouville.
Notable progress since Q1 2024 includes:
• pCAM has been successfully produced at the Sandouville plant on a laboratory
scale
• An application for a patent for the novel pCAM process was filed in July
2024
The GalliCam project offers the Sandouville refinery an exciting brownfield
alternative to leverage the existing chloride facility and skills-base into
producing pCAM for the European market using a different feed source, MHP, to
the nickel matte currently being refined at the Sandouville refinery.
In order to address the Sandouville refinery's projected losses and to prepare
it for potential production of pCAM, Sibanye-Stillwater has reached agreement
to terminate a key commercial supply contract with supply culminating on or
before 31 December 2024.
Furthermore:
• The agreed cost to terminate the supply agreement is approximately US$37
million
• Refining of inventory and sales will continue into Q1 2025
• Negotiations to terminate other related contracts are ongoing
• As part of the permitting process for the GalliCam project, voluntary
consultation managed by Sibanye-Stillwater with local stakeholders in France
will be undertaken during September and October 2024
• The construction of a pilot plant representing a small-scale pCAM
precipitation process is underway at the Sandouville refinery site and is
planned to begin testing from the end of Q3 2024.
Neal Froneman, CEO of Sibanye-Stillwater commented: "Despite the significant
operational and cost improvements achieved recently, the Sandouville refinery
remains loss making and, as such, we thank our partners for their understanding
and consideration in allowing for the consensual cancellation of the supply
agreement. We are excited to be progressing with our battery metals strategy
of developing downstream exposure to Europe's battery metals value chain. We
look forward to working with all stakeholders, including the French authorities,
to build a leading pCAM facility in Europe."
There will be no changes to the Sandouville refinery's production guidance for
2024. Sibanye-Stillwater will provide further information on the GalliCam
project as the studies advance. The results of the PFS will determine which
activities will be undertaken at the Sandouville site during 2025 to 2026.
About Sibanye-Stillwater
Sibanye-Stillwater is a multinational mining and metals processing group with a diverse
portfolio of operations, projects and investments across five continents. The Group is
also one of the foremost global recyclers of PGM autocatalysts and has interests in
leading mine tailings retreatment operations.
Sibanye-Stillwater is one of the world's largest primary producers of platinum,
palladium, and rhodium and is a top tier gold producer. It also produces and refines
iridium and ruthenium, nickel, chrome, copper and cobalt. The Group has recently begun
to diversify its asset portfolio into battery metals mining and processing and increase
its presence in the circular economy by growing its recycling and tailings reprocessing
exposure globally. For more information refer to www.sibanyestillwater.com.
Investor relations contact:
Email: ir@sibanyestillwater.com
James Wellsted
Executive Vice President: Investor Relations and Corporate Affairs
Tel: +27 (0) 83 453 4014
Website: www.sibanyestillwater.com
LinkedIn: https://www.linkedin.com/company/sibanye-stillwater
Facebook: https://www.facebook.com/SibanyeStillwater
YouTube: https://www.youtube.com/@sibanyestillwater/videos
X: https://twitter.com/SIBSTILL
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
DISCLAIMER
FORWARD LOOKING STATEMENTS
This announcement contains forward-looking statements within the meaning of the "safe harbour"
provisions of the United States Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical fact included in this announcement may be forward-looking
statements. Forward-looking statements may be identified by the use of words such as "will",
"would", "expect", "forecast", "potential", "may", "could", "believe", "aim", "anticipate",
"target", "estimate" and words of similar meaning.
These forward-looking statements are necessarily estimates reflecting the best judgement of
Sibanye Stillwater Limited's ("Sibanye-Stillwater") senior management. Readers are cautioned not
to place undue reliance on such statements.
Forward-looking statements involve a number of known and unknown risks, uncertainties and other
factors, many of which are difficult to predict and generally beyond the control of Sibanye-
Stillwater that could cause its actual results and outcomes to be materially different from
historical results or from any future results expressed or implied by such forward-looking
statements. As a consequence, these forward-looking statements should be considered in light of
various important factors, including those set forth in Sibanye-Stillwater's 2023 Integrated
Report and annual report on Form 20-F filed with the United States Securities and Exchange
Commission on 26 April 2024 (SEC File no. 333-234096). These forward-looking statements speak
only as of the date of this announcement. Sibanye-Stillwater expressly disclaims any obligation
or undertaking to update or revise any forward-looking statement (except to the extent legally
required).
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of, this document.
Date: 21-08-2024 02:00:00
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