Construction World October 2020

ROADS & BRIDGES

DRIVEN BY DIVERSIFICATION AND EFFICIENCY Afrimat, a leading black empowered open pit mining company providing industrial minerals and construction materials, is listed in the 'Construction & Building Materials' sector of the Main Board JSE Limited since 2006. Construction World wanted to know about its hugely successful diversification process and how the company goes from strength to strength despite challenges.

What is Afrimat’s vision? Our vision is to be globally respected for excellence in unlocking and enhancing the earth’s mineral potential to build a better world. This really boils down to being exceptionally good at what we do and doing that with real integrity. What is the company’s unique selling point? Afrimat’s assets normally possess at least one of three competitive advantages: • Unique metallurgical content resulting in sought-after quality • Geographical location resulting in favourable logistics • Structural low cost resulting in exceptional competitiveness Given our wide range of resources and wealth of expertise, we have the opportunity WR IXOͤO RXU FOLHQWV̵ ZLGHU QHHGV :H pride ourselves in our fast reaction times, transparent communication, honesty and ͥH[LELOLW\ A big part of Afrimat’s success has EHHQ LWV GLYHUVĻFDWLRQ VWUDWHJ\ Explain what this strategy is? $IULPDW̵V FRUH VNLOO LV WKH HͦFLHQW RSHUDWLRQ of smaller mines. We honed this skill in the quarrying industry, then developed it further when we entered the industrial minerals sector and our entry into bulk commodities has taken it even further. Our entrepreneurial culture is key in Afrimat’s growth strategy. We are always looking for opportunities to buy businesses which are not performing to their potential and turning them around to ensure continuous growth DQG GLYHUVLͤFDWLRQ ZLWKLQ WKH JURXS 7KH GLYHUVLͤFDWLRQ VWUDWHJ\ FRPPHQFHG in 2009 after the worldwide economic crisis of 2008. We realised that our exposure to the South African construction industry FRXOG SRVH D ULVN 2XU ͤUVW VWHS ZDV WKH acquisition of Glen Douglas Dolomite in 2010, followed by the Clinker Group in 2012, Infrasors in 2013 and Cape Lime in 2016. We acquired Demaneng in 2017, acquired a minority stake in Unicorn Capital Partners (UCP) early in 2020 and we are busy with the acquisition of the remaining shares in UCP. Afrimat has also recently announced the

protecting the environment and enhancing the quality of life of its employees and empowering communities affected by its operations. As such the company's vision, mission, values and strategic objectives are integrated into policies, procedures, decision-making processes and operations, with sustainability as the ultimate objective. Afrimat's Social, Ethics & Sustainability Committee is responsible for monitoring and regulating the impacts of the group on its material stakeholders and environments. Although management is tasked with overseeing the day-to-day operational sustainability of their respective areas of business, and reporting thereon to the committee, the board retains ultimate responsibility for group sustainability. The group manages its environmental footprint through formal Environmental Management Programmes (EMPs) in line with local and international regulations and best practice. The EMPs focus on responsible mining, reducing emissions through upgrades to diesel-driven equipment, decreasing noise pollution, recycling products where viable and maintaining all plants at optimum working OHYHOV DQG HͦFLHQF\ $FWLYH SURJUDPPHV to reduce the group’s carbon footprint have also recently been introduced. With Afrimat committed to continually upgrading and improving its EMPs, it has today become well renowned and respected in the industry in this regard. Further, third-party audits by ASPASA, SARMA and external consultants support our environmental conservation and protection efforts and provide added RSSRUWXQLW\ IRU UHͤQHPHQW RI LWV (03V Environmental progress reports are submitted annually to the Department of Mineral Resources in terms of mining rights requirements. In addition, mine rehabilitation assessments are conducted by external consultants and provisions are raised to meet these future obligations. Afrimat values staff engagement as this promotes the sustainability of the company. How does this contribute to company policy? We believe that a business can only remain successful if it has highly competent people

acquisition of Coza Mining which has grown its iron ore business in the Norther Cape VLJQLͤFDQWO\ Because of this approach we have been able to continue to deliver solid results even LQ D GLͦFXOW HFRQRPLF FOLPDWH What are Afrimat’s key divisions? Construction Materials, Industrial Minerals, Bulk Commodities, Contracting Services What sets you apart from its competitors? With more than 50 years of experience our clients are sure to get expert advice, quality products and consistent delivery of services. What is Afrimat’s geographical footprint? We are based in eight of the nine provinces in South Africa (Western Cape, Northern Cape, Eastern Cape, Free State, KwaZulu- Natal, Mpumalanga, Gauteng and Limpopo) as well as Mozambique and Mauritius. What is the company’s policy regarding environmental sustainability? Afrimat is committed to delivering sustainable growth and wealth creation for shareholders and at the same time

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