Group at a glance

Joint-venture entity (Assmang)

glance1 glance2 glance3
Type of operation Type of operation Type of operation
  • Mining, crushing, screening and jigging of run-of-mine ore and tertiary recovery of fine iron ore product
  • Mining, crushing, washing and screening of ore
  • Smelting of ferromanganese
  • Production of refined ferromanganese
  • Mining, crushing and concentrating of ore
Description Description Description
Iron ore is mined in the Northern Cape province in open-cast operations at the Khumani Iron Ore Mine which is located near Kathu in the Northern Cape and at the Beeshoek Iron Ore Mine which is located outside Postmasburg. The ore produced is sold both on the export market and locally. Various grades of manganese ore are mined at the Nchwaning and Gloria mines, located in the Black Rock area of the Northern Cape province, and manganese alloys are produced at the Cato Ridge Works in KwaZulu-Natal. Cato Ridge Alloys, a joint venture with Japanese partners, produces refined ferromanganese at the Cato Ridge Works. Feed for the Cato Ridge Works is derived mainly from Assmang’s manganese mines. The ore and alloy produced are both sold on the export market and locally. Chrome ore is mined at the Dwarsrivier Mine in the Limpopo province, located near Steelpoort and Lydenburg. The ore produced is sold both on the export market and locally. Refer here for details of Assore’s pending acquisition of the remaining 50% of the mine from ARM.
Attributable profit Attributable profit Attributable profit
2015 2015 2015
R1 190,7 million R47,1 million R91,9 million
(2014: R3 178,7 million) (2014: R342,1 million) (2014: R63,9 million)
Revenue generated Revenue generated Revenue generated
2015 2015 2015
R6 311,2 million* R3 576,2 million* R899,4 million*
(2014: R9 050,7 million) (2014: R4 154,6 million) (2014: R804,9 million)
* Note that, in terms of International Financial Reporting Standards (IFRS), Assmang is accounted for on the equity accounting basis. Therefore, “Revenue generated”, which is stated at 50% of its reported figure, as included in this analysis, does not form part of the group’s reported revenue as reported in terms of IFRS.

 


Subsidiary companies

* Note that, in terms of International Financial Reporting Standards (IFRS), Assmang is accounted for on the equity accounting basis. Therefore, “Revenue generated”, which is stated at 50% of its reported figure, as included in this analysis, does not form part of the group’s reported revenue as reported in terms of IFRS.

 

glance1   glance2   glance3
Type of operation   Type of operation   Type of operation
  • Open-cast and underground mining and concentrating of ore
  
  • Open-cast mine, on care and maintenance
  
  • Mining and beneficiation of Wonderstone, and manufacture and installation of ceramic and filtration products
Description   Description   Description
Chrome ore is mined near Rustenburg in open-cast operations and production is supplied mainly to the local market. The company has suspended the capital development work on the two underground shafts indefinitely, due to assessments indicating their unsustainability in current and expected market conditions (refer here for financial impact). Limited production of chrome ore is being undertaken from sufficiently developed underground areas.   Current market conditions have necessitated that the mine be placed on care and maintenance.   The company mines a type of pyrophyllite which, for trade purposes, is referred to as Wonderstone. The bulk of the material mined is beneficiated to produce highprecision components manufactured to customers’ specification and are exported to the United States of America, the United Kingdom and the Far East. The company also produces a range of wear and acid-resistant tiles and ceramic products used mainly for chute liners in the local mining industry and installed on a project basis in certain instances. Wonderstone is also being used in industrial filtration solutions.
Attributable (loss)/profit   Attributable (loss)/profit   Attributable (loss)/profit
2015   2015   2015
R(179,7) million#   R(12,2) million   R(9,6) million
(2014: R7,9 million)   (2014: R(26,9) million)   (2014: R(1,3) million)
Contribution to group revenue   Contribution to group revenue   Contribution to group revenue
2015   2015   2015
R163,9 million   R76,4 million   R99,3 million
(2014: R228,9 million)   (2014: R25,4 million)   (2014: R79,7 million)
   
# After impairment charge, net of taxation relief, of R180,4 million (attributable to the group) charged against the cost of underground development costs and related assets (refer here).
         
Ore & Metal Company   Minerais U.S. LLC   African Mining and Trust Company
Type of operation   Type of operation   Type of operation
  • Marketing, sales and shipping of ores and alloys (refer here)
  
  • Marketing of minerals and alloys in USA (refer here)
  
  • Operational management, exploration and technical adviser (refer here)
Description   Description   Description
Ore & Metal Company Limited is responsible for the marketing, sales and shipping of all the group’s products, including those produced by the three divisions of Assmang. Strong relationships have been established with customers in Europe, North America, South America, India and the Far East.   Minerais U.S. LLC is responsible for marketing and sales administration of the group’s products in the USA, in particular manganese alloys, and trades in various related commodities.   African Mining and Trust Company Limited is technical adviser to Assmang and other group companies and provides operational management services to group mines and plants.
Attributable profit   Attributable profit   Attributable profit
2015   2015   2015
R223,5 million   R32,2 million   R109,8 million
(2014: R320,9 million)   (2014: R20,9 million)   (2014: R193,7 million)
Contribution to group revenue   Contribution to group revenue   Contribution to group revenue
2015   2015   2015
R428,8 million   R2 222,1 million   R318,8 million
(2014: R569,6 million)   (2014: R1 484,1 million)   (2014: R446,7 million)