Modern Mining August 2023

IRON ORE

step involves completing construction of a single super phosphate (SSP) plant, which is currently underway with commissioning scheduled for the second half of this year. We plan on ramping the plant to full production in a year from now.” Afrimat will produce a total of 100 000 tpa of phosphate. Total capex for the phosphate project, which includes the purchase price of R550 mil lion, and development of the SSP plant amounts to roughly R800 million. According to Van Heerden, the company has a competitive advantage over most fertilizer compa nies as the JSE-listed entity owns the primary source of production. Although the company is negotiating off-take agreements for its phosphate material, no agree ments have as yet been inked. “Once we are producing phosphate, we will be in a position to

vermiculite for various applications from industrial to horticulture; and rare earth elements, supporting technological advancements such as high-strength permanent magnets and battery technology.” Van Heerden explains that

Afrimat’s Demaneng Mine.

from the Future Materials and Metals business, the company has started producing high grade phosphate and is target ing the organic food production market. “This is a new and emerging market for the environmentally conscious farmer and while this

Financial performance Afrimat recently posted sterling results for the year ended 28 February 2023, with revenue up 4,9% to R4,9 billion (2022: R4,7 billion) and an operating profit margin of 19,6%.

niche market is still in its infancy stage, it is grow ing by leaps and bounds. Although the market is relatively small in South Africa, internationally, it is a market that is expanding rather quickly. Our next

Nkomati Anthracite’s Matadeni pit.

provide material to potential clients to test, and only then will we be able to finalise any off-take agreements,” says Van Heerden. Meanwhile, the ‘exciting’ rare earth elements segment is at infancy stage. “We have banked the proj ect on the phosphates and the vermiculite, with the rare earths portfolio really a cherry on top,” says Van Heerden. The life of mine for phos phate and rare earths is pegged at more than 20 years while the rare earth elements have an estimated 10-year LOM. The Future Materials and Metals segment generated revenue of R25,2 million, with start-up losses amounting to R11,4 million for the year ended 28 February 2023.

14  MODERN MINING  August 2023