The integrated annual report (IAR) of Assore Limited (Assore or group) covers the period 1 July 2015 to 30 June 2016.
The group’s financial year ends on 30 June, and unless otherwise indicated or described, the information included in this report refers to the years ended 30 June 2015 and 30 June 2016. The previous IAR covered the period 1 July 2014 to 30 June 2015. Where any restatements have been made to material disclosures in the previous IAR, these are explained within the relevant sections.
The entities reported on include the following:
- Assore Limited (Assore)
- Assmang Proprietary Limited (Assmang), jointly controlled by Assore, 50% and African Rainbow Minerals Limited (ARM) 50%, accounted for on the equity accounting basis, which includes the following operations:
- Khumani Iron Ore Mine (Khumani);
- Beeshoek Iron Ore Mine (Beeshoek);
- Black Rock Manganese Mines (Black Rock);
- Cato Ridge Works (ferromanganese smelter);
- Machadodorp Works (ferromanganese smelter);
- Cato Ridge Alloys Proprietary Limited (CRA) (refined ferromanganese smelter);
- Sakura Ferroalloys SDN BHD, Malaysia (ferromanganese and silico manganese smelters – Sakura Ferroalloys); and
- Dwarsrivier Chrome Mine (Dwarsrivier), refer here for details of Assore’s acquisition of the remaining 50% of the mine from ARM, which was completed on 29 July 2016.
In addition to determining the strategy and monitoring the overall management of Assmang in terms of the joint-venture agreement with ARM, Assore has the sole marketing and distribution agency for Assmang’s products and the emphasis on Assmang in this report relates primarily to this role as a 50% partner (refer “Business model”), with these activities being managed through:
- Ore & Metal Company Limited (Ore & Metal), which conducts the marketing and distribution of Assmang’s products, with marketing and trading taking place in the United States by Minerais U.S. LLC (Minerais); and
- African Mining and Trust Company Limited’s (AMT) operations which include:
- Wonderstone Limited (Wonderstone);
- Head Office operations (Head Office), comprising the activities of those of AMT and Ore & Metal, where relevant;
- Rustenburg Minerals Development Company Proprietary Limited (Rustenburg Minerals);
- Zeerust Chrome Mines Limited (Zeerust);
with the latter two of these operations having been placed on care and maintenance.
The IAR has been prepared on the basis of the group’s consolidated financial statements, prepared in accordance with IFRS and relevant facts, issues and risks that are pertinent to the group’s operations. Guidelines used in compiling the separate elements of the IAR include:
|Mineral Resources and Reserves||South African Code for Reporting Mineral Resources and Mineral Reserves (SAMREC Code), and the Australian Institute of Mining and Metallurgy Joint Ore Reserves Committee Code (JORC Code)||here,
the complete Mineral Resources and Reserves report is located on the group’s website under “Annual reports” in the “Investor centre”
|Corporate governance and risk management||King Code on Corporate Governance, issued in September 2009 (King III)||here and throughout|
|Black economic empowerment status report||Mineral and Petroleum Resources Development Act and the Broad-based Socioeconomic Empowerment Charter for the South African Mining Industry issued thereunder (the Mining Charter) and Codes of Good Practice, issued by the Department of Trade and Industry (dti)||here|
|Sustainability||Various relevant guidelines, as well as those contained in the Global Reporting Initiative (GRI) G3 indicators||here, throughout and the complete sustainability report, located on the group’s website under “Annual reports” in the “Investor centre”|
|Annual financial statements||International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, South African Companies Act, as amended, and JSE Listings Requirements||here|