Home > Integrated report > Business model

Organisational overview and activities

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”, “Location of operations” and “Group structure of operating companies” provide more detail of the group’s holdings and its operations.

The group’s principal investment is a 50% interest in Assmang Limited (Assmang) which it controls jointly with African Rainbow Minerals Limited (ARM) through an operations committee. Assmang’s operations encompass the mining, distribution and sale of iron, manganese and chrome ores, and the distribution and sale of its produced manganese and chrome alloys. In terms of the joint-venture agreement with ARM, Assore, through its wholly owned subsidiary, Ore & Metal Company Limited (Ore & Metal), is the sole marketing and distribution agent for Assmang, while ARM manages the production and the domestic logistical arrangements of the material sold. 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 International Financial Reporting Standards (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” (note 30) and further insight into the management of Assmang is provided under “Governance structure”.

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.

The IR 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 IR include:




Mineral resources and reserves report

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)


Corporate governance and risk management report

King Code on Corporate Governance, issued in September 2009 (King III)


Black economic empowerment status report

Mineral and Petroleum Resources Development Act and the Broad-based Socio-economic Empowerment Charter for the South African Mining Industry issued there under (the Mining Charter) Codes of Good Practice, issued by the Department of Trade and Industry (DTI)


Sustainability report

Various relevant guidelines, as well as those contained in the global reporting initiative (GRI) G3 indicators


Annual financial statements

IFRS, South African Companies Act and JSE Listings Requirements