Modern Mining July 2021

BULK COMMODITIES

Bulk commodities propel Afrimat into the mid-tier mining space

F ollowing its establishment after the 2016 acquisition of the Demaneng iron ore mine – previously known as Diro Manganese Propr ietary Limi ted and Di ro I ron Ore Proprietary Limited – Afrimat’s Bulk Commodities segment is becoming a significant part of the group’s business. This is validated by the division’s recent solid contribution to the group’s full year results for the year ended February 28, 2021. The group delivered resilient results despite the effects of the sudden and unexpected global COVID-19 pandemic and the hard lockdown levels imposed during the first half of the financial year. Whi le al l divisions, including Construction Materials and Industrial Minerals, returned to prof‑ itability in the face of the economic storm, of note was the solid contribution of the Bulk Commodities segment, which continues to grow its revenue por‑ tion year after year. Afrimat CFO Pieter de Wit tells Modern Mining that the segment contributed about R1,6-billion (R1,584-million) in the recently ended financial year, equating to 43% of the group’s total revenue. This is a significant increase from the 31,4% in the previous financial year and 28,9% a year before that. The Bulk Commodi t ies division’s perfor‑ mance was on par with the Construction Materials

Key to Afrimat’s persistent growth over the years has been its diversified portfolio. The continued growth of its Bulk Commodities division, anchored by its iron ore assets, has been central to the company’s rise into the mid-tier mining space. The recent addition of another mineral through the acquisition of a manganese min- ing right will further enhance the company’s commodity diversity, writes Munesu Shoko .

Andries van Heerden, CEO of Afrimat.

Pieter de Wit, CFO of Afrimat.

Afrimat’s Bulk Commodities segment is becoming a significant part of the group’s business.

18  MODERN MINING  July 2021