Group at a glance

Joint-venture entity (Assmang)

Iron Ore division

  Iron ore        
  Type of operation  

Description
Iron ore is mined in the Northern Cape province in open-pit operations at the Khumani Iron Ore Mine which is located near Kathu and at the Beeshoek Iron Ore Mine which is located outside Postmasburg. The ore produced is sold both on the export market and locally.

* 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.

 

 

 
R15 135,3m
(2017: R16 399,0 million)
    Revenue generated*
R3 343,5m
(2017: R4 372,6 million)
    Attributable profit

      2018       2017  
Production volumes (Metric tons ’000)                
– Khumani     14 694       14 560  
– Beeshoek     3 884       3 154  
LTIFR                
– Khumani     0,10       0,10  
– Beeshoek     0,07       0,15  
Total employees and contractors                
– Khumani     5 066       5 162  
– Beeshoek     1 378       1 076  

Manganese division

  Manganese ore and alloys        
  Type of operation  

Description
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. Sakura Ferroalloys, a joint venture smelting operation in Malaysia in which Assmang holds a 54,36% stake, produces high carbon ferromanganese from ores sourced in the market. The smelting plant has been designed to allow for switching production capacity to silico manganese. Alloy produced is sold in the export market.

* 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.

 

 

 
R12 859,6m
(2017: R10 238,1 million)
    Revenue generated*
R3 772,0m
(2017: R2 181,6 million)
    Attributable profit

      2018       2017  
Production volumes (Metric tons ’000)                
– Black Rock     3 717       3 069  
– Sakura     244       181  
– Cato Ridge Works     151       161  
LTIFR                
– Black Rock     0,20       0,24  
– Sakura     0,26       0,23  
– Cato Ridge Works     0,00       0,19  
Total employees and contractors                
– Black Rock     4 623       5 016  
– Sakura     475       346  
– Cato Ridge Works     612       581  

Subsidiary companies

Dwarsrivier Chrome Mine

  Chrome ore        
  Type of operation  

Description
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.

 
R3 892,8m
(2017: R3 410,4 million)
    Contribution to
group revenue
R875,4m
(2017: R843,2 million)
    Attributable profit

      2018       2017  
Production volumes (Metric tons ’000)     1 619       1 392  
LTIFR     0,19       0,20  
Total employees and contractors     2 262       2 123  

Ore & Metal Company

  Marketing and distribution        
  Type of operation  

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, Refer to Chief executive officer's report South America, India and the Far East.

 
R831,0m
(2017: R783,2 million)
    Contribution to
group revenue
R409,8m
(2017: R383,8 million)
    Attributable profit

      2018       2017  
Total employees and contractors     52       52  

African Mining and Trust Company

  Marketing and distribution        
  Type of operation  

Description
In order to support Ore & Metal Company in its activities, 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.

 
R488,1m
(2017: R461,4 million)
    Contribution to
group revenue
R164,6m
(2017: R181,3 million)
    Attributable profit

      2018       2017  
Total employees and contractors     79       80  

Minerais U.S. LLC

  Marketing and distribution, USA        
  Type of operation  

Description
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.

 
R2 444,8m
(2017: R2 364,4 million)
    Contribution to
group revenue
R65,3m
(2017: R97,3 million)
    Attributable profit

      2018       2017  
Total employees and contractors     9       9  

Wonderstone

  Wonderstone        
  Type of operation  

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 high-precision components manufactured to customers’ specification and are exported to the United States of America, the United Kingdom and the Far East.

 
R53,4m
(2017: R81,1 million)
    Contribution to
group revenue
R1,43m
(2017: R5,07 million)
    Attributable profit

      2018       2017  
LTIFR     2,44       1,85  
Total employees and contractors     78       78