Group at a glance

Joint-venture entity (Assmang)

             
Iron Ore division (refer here)     Manganese division (refer here)     Chrome division (refer here)
Iron ore     Manganese ore and alloys     Chrome ore
             
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 Chrome Mine in the Limpopo province, located near Steelpoort and Lydenburg. The ore produced is sold both on the export market and locally. With effect from 1 July 2016, Assore owned 100% of Dwarsrivier Chrome Mine (refer note 36 to the consolidated financial statements).
             
Attributable profit     Attributable profit     Attributable profit
2016     2016     2016
R1 220,1 million     R51,9 million     R21,5 million
(2015: R1 190,7 million)     (2015: R47,1 million)     (2015: R91,9 million)
             
Revenue generated*     Revenue generated*     Revenue generated*
2016     2016     2016
R6 266,3 million     R3 333,1 million     R946,9 million
(2015: R6 311,2 million)     (2015: R3 576,2 million)     (2015: R899,4 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

             
Wonderstone (refer here)     Rustenburg Minerals
Development Company
(refer here)     Zeerust Chrome Mines (refer here)
Wonderstone     Chrome ore     Chrome ore
             
Type of operation     Type of operation     Type of operation
  • Mining and beneficiation of Wonderstone, and manufacture and installation of ceramic products
   
  • Open-cast mine, on care and maintenance
   
  • Open-cast mine, on care and maintenance
Description     Description     Description
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.     Chrome ore is mined near Rustenburg in open-cast operations and production is supplied mainly to the local market. The open-cast pits have reached the point of depletion and the mine continues to process existing mined and waste materials. Once this process is complete, the mine is scheduled to be placed on care and maintenance.     Current market conditions have necessitated that the mine be placed on care and maintenance.
             
Attributable loss     Attributable loss     Attributable loss
2016     2016     2016
R(22,0) million     R(114,2) million#     R(0,5) million
(2015: R(9,6) million)     (2015: R(179,7) million)     (2015: R(12,2) million)
             
Contribution to group revenue     Contribution to group revenue     Contribution to group revenue
2016     2016     2016
R98,2 million     R173,8 million     R6,4 million
(2015: R99,3 million)     (2015: R163,9 million)     (2015: R76,4 million)
             
   
After impairment charge of R24,3 million charged against goodwill, previously recorded pursuant to the acquisition of Groupline Projects in 2012 (refer here).
# After impairment charge of R23,2 million (2015: R180,4 million) (attributable to the group) recorded against the remaining net book value of assets in Rustenburg Minerals (refer here).
             
Ore & Metal Company (refer here)     Minerais U.S. LLC (refer here)     African Mining
and Trust Company
(refer here)
Marketing and distribution     Marketing and distribution, USA     Operational and technical advice
             
Type of operation     Type of operation     Type of operation
  • Marketing, sales and shipping of ores and alloys
   
  • Marketing of minerals and alloys in the USA
   
  • Operational management, exploration and technical adviser
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 United States of America (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
2016     2016     2016
R271,3 million     R11,4 million     R101,5 million
(2015: R223,5 million)     (2015: R32,2 million)     (2015: R109,8 million)
             
Contribution to group revenue     Contribution to group revenue     Contribution to group revenue
2016     2016     2016
R511,5 million     R1 763,7 million     R334,9 million
(2015: R428,8 million)     (2015: R2 222,1 million)     (2015: R318,8 million)