AFRIMAT continued down the acquisition trail and turning-around loss-making mines yesterday with the announcement to acquire Glenover Phosphate and its vermiculite and phosphate rock deposits at Glenover Mine for R550 million.
The acquisition expands Afrimat’s product offering to include a new mineral segment that supports its diversification strategy – the group mines construction materials and bulk commodities such as iron ore, anthracite and manganese.
The acquisition would be funded by a robust balance sheet and future cash flow generation, the group said.
Last month, Afrimat acquired Agri Lime and Stony Lime for R63m, an opencast mine near Northam in Limpopo, to strengthen its footprint in the agricultural lime market, and in line with the growth strategy at its Industrial Minerals segment.
The group also said yesterday that its Coza Mining (Jenkins) and Nkomati Anthracite projects had been successfully implemented, allowing the business development team to focus on the new Gravenhage mining right, and Glenover projects.
“Recent results regarding the quality and quantity of resources coming from the Nkomati and Jenkins projects were exceeding expectations, with good cash flow as a result,” Afrimat said.
The group said Glenhover would reduce its exposure to the ferrous metals value chain by providing a multi-commodity product, which addresses fundamental needs and trends, including the agriculture and food industry, as well as new technology applications.
Glenover was...
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