Modern Mining November 2020

BULK COMMODITIES

Bucking the trend In the face of a brutal COVID-19 influenced downturn, Afrimat’s Bulk Commodities segment – buoyed by strong iron ore prices and a weaker rand – bucked the downward trend with a solid contribution to the group’s interim results for the six months ended 31 August 2020. The recent addition of new iron ore assets, CEO Andries van Heerden tells Munesu Shoko , will further strengthen the company’s iron ore capacity, while the potential acquisition of a high-quality anthracite asset will enhance the company’s commodity diversity, thus positioning Afrimat as a serious junior miner in the bulk commodities sector.

W hat started out as a simple con- struction materials business has in recent years become more sophisticated with the addition of industrial minerals and iron ore to the stable. Following its establishment after the 2016 acquisition of the Demaneng iron ore mine – previously known as Diro Manganese Proprietary Limited

delivered growth of 135,8% in operating profit to R325,8-million. The excellent performance, says van Heerden, was largely due to favourable iron ore pric- ing and the weaker rand during the reporting period. The Bulk Commodities sector was instrumental in Afrimat’s overall solid results in the face of the sud- den and unexpected global COVID-19 pandemic. The disruption, says Van Heerden, was countered by the company’s successful diversification strategy, as well as the implementation of proactive measures to manage and minimise the impact of the pandemic, bolstered by cost reduction and efficiency improve- ment initiatives. Commenting on the results, Van Heerden explains how what he terms the “trifactor in our

and Diro Iron 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 interim results for the six months ended 31 August 2020, where it

Andries van Heerden, CEO of Afrimat.

Nkomati Anthracite Proprietary Limited mines high-grade anthracite, which positions it as a key supplier to the local market.

12  MODERN MINING  November 2020