Business model

Assore is a mining holding company engaged principally in ventures involving base minerals and metals to take advantage of opportunities, either on its own or in joint ventures, in a profitable, responsible and sustainable manner. Assore, including its subsidiary companies and joint-venture entities (the group) is strongly committed to the requirements of black economic empowerment (BEE) as contemplated by the Mining Charter.

The group seeks to align the exploitation of its mineral deposits and alloy production capacity with customer requirements, in accordance with its programme of capital expenditure. The sections “Group at a glance”, “Group structure of operating companies” and “Location of markets and operations” and provide more detail of the group’s holdings and its operations.

The group’s principal investment is a 50% interest in Assmang which it controls jointly with ARM through an operations committee. Assmang’s operations encompass the mining, distribution and sale of ron, manganese and chrome ores, and the distribution and sale of its produced manganese alloys. In terms of the joint-venture agreement with ARM, Assore, through its wholly owned subsidiary, Ore & Metal, is the sole marketing and distribution agent for Assmang. In this capacity Ore & Metal, a wholly owned subsidiary of Assore, through its global network of agents and customers, provides essential input into the strategy of Assmang, which is based on market research and understanding of customers’ needs. In terms of IFRS, the financial results of Assmang are proportionately consolidated in the group’s results covered in this report. Summarised financial information for Assmang on a stand-alone basis is contained in the “Directors’ report” (refer here and note 30 to the consolidated financial statements).

Besides the Assmang operations, the group also has interests in other chrome deposits and industrial minerals and maintains a portfolio of investments in other mining companies listed on the JSE.