Modern Mining August 2020

Afrimat acquires additional iron ore capacity

Afrimat, a leading open-pit mining company providing industrial minerals, commodities and construction materials, has announced the acquisition of Coza Mining Proprietary Limited (Coza), which adds additional iron ore reserves to Afrimat’s commodity segment. The acquisition includes three mines namely Jenkins, Driehoekspan and Doornpan, adding substantial potential to Afrimat’s iron ore and manganese operations in the Northern Cape. “The high-quality resource, which is located adjacent to our current Demaneng iron ore mine, affords Afrimat additional iron ore sources to extend the ‘life of mine’, says Afrimat CEO, Andries van Heerden. He adds that, most importantly and in-line with Afrimat’s dedication to diversification, iron ore will now also be sold into the inland market, with a supply agreement in place. “This means that no additional pressure is placed on our cur- rent allocation on the Saldanha iron ore rail line, although any additional trains Afrimat is allocated on this line, we will continue to take and fill.” The total purchase consideration is R300-million in cash tranches, dependent on approvals from authorities such as the Department of Mineral Resources and Energy and Water Use License confirmations. Van Heerden adds that given the proximity to the existing Demaneng operations, lever- age opportunities exist. The asset includes a possible manganese resource for further explo- ration, which is similar to Demaneng and again, synergies through the combination of these resources are possible. “Further expansion opportunities exist to increase the resource size at Driehoekspan and Doornpan, but this will likely only take place into the future, as it remains the Afrimat operating style, to take over and stabilise oper- Barrick’s Mali mines unaffected by political transition Barrick Gold Corporation maintains that its Loulo-Gounkoto mining complex had not been affected by the political situation in Mali and operations there are continuing as normal. The complex has an adequate inventory for its foreseeable requirements and management has taken steps to secure its supply lines. The company is monitoring the situation closely in consultation with local stakeholders. 

ations before attempting expansion,” van Heerden elaborates. A mining contractor agreement is in place with Coza which allows Afrimat to initiate mining operations during the interim period until all conditions prec- edent are met, starting at the Jenkins mine. Afrimat conducted a thorough due diligence and is confident that these three mines will add to the commodities segment and the ability to supply the inland market further strengthens diver- sification within the segment. 

The acquisition offers additional iron ore reserves to Afrimat’s commodity segment.

August 2020  MODERN MINING  13