Modern Mining July 2021

international markets. Afrimat already has an excel‑ lent working relationship with Transnet through Demaneng and it is envisaged that further co- operation by Transnet as a partner to enable new entrants like Afrimat into the manganese sector, will be forthcoming. Van Heerden makes it very clear that economic viability and profitability are one thing, but that Afrimat is equally passionate about the longer-term contribution it will be able to make to the immediate local community, the Northern Cape province and the South African economy through its dedication to job creation and skills development and trans‑ fer. “We know from experience how important this commitment is,” say Van Heerden, adding that this sustainable intervention is a core part of the Afrimat culture. According to Van Heerden, the manganese price has lagged behind other commodity prices such as iron ore. “In true Afrimat style, we will ensure from the outset that the mine will remain profitable even at the bottom-end of a commodity cycle,” he says. Afrimat is purchasing the Gravenhage manga‑ nese mining rights and associated assets from Aquila Steel (S Africa) Proprietary Limited and Rakana Consolidated Mines Proprietary Limited for a total purchase consideration of roughly R650-million (or

the rand equivalent of US$45-million and R15-million for the property). There are conditions precedent that include approval in terms of Section 11 of the Mineral and Petroleum Resources Development Act, Competition Commission approval, the granting of a water use license, and approval obtained by Aquila Steel Proprietary Limited from the Chinese State-owned Assets Supervision and Administration Commission of the State Council for the sale of the assets and the assumption of the assumed liabilities as contem‑ plated in the agreement. In conclusion Van Heerden indicates that while this represents a large acquisition for Afrimat, it would be supported by the group’s experience of undertaking solid research and due diligence and be underpinned by vigilant execution. 

The Bulk Commodities segment contributed about R1,6-billion in the recently ended financial year, equating to 43% of the group’s total revenue.

July 2021  MODERN MINING  21