Integrated Annual Report 2019

Group at a glance

JOINT-VENTURE ENTITY (ASSMANG) SUBSIDIARY COMPANIES
Iron Ore division Manganese division Dwarsriver Chrome Mine Ore & Metal Company African Mining and Trust Company Minerais U.S. LLC Wonderstone

R21 410,2m

Revenue generated*

(2018: R15 135,3 million)


R6 796,1m

Attributable profit

2018: R3 343,5 million)


Refer to Chief executive officer's report

Type of operation

  • Mining, crushing, screening and jigging of run-of-mine ore and tertiary recovery of fine iron ore product

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.

 

 
2019 2018  
Production volumes (Metric tons '000)
– Khumani
– Beeshoek
14 146
3 640
14 694
3 884
 
LTIFR
– Khumani
– Beeshoek
0,08
0,06
0,10
0,07
 
Total employees and contractors
– Khumani
– Beeshoek
3 827
1 445
5 066
1 378
 
 

R14 817,1m

Revenue generated*

(2018: R12 859,6 million)


R2 301,7m

Attributable profit

(2018: R3 772,0 million)


Refer to Chief executive officer's report

Type of operation

  • Mining, crushing, washing and screening of ore
  • Smelting of ferromanganese
  • Production of refined ferromanganese

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.

 

 
  2019 2018  
Production volumes (Metric tons'000)
– Black Rock 3 409 3 717  
– Sakura 249 244  
– Cato Ridge Works 143 151  
LTIFR      
–  Black Rock 0,33 0,20  
– Sakura 0,52 0,26  
–  Cato Ridge Works  
Total employees and contractors
– Black Rock 5 528 4 623  
– Sakura 447 475  
– Cato Ridge Works 552 612  
 

R3 720,8m

Revenue generated

(2018: R3 892,8 million)


R516,0m

Attributable profit

(2018: R875,4 million)


Refer to Chief executive officer's report

Type of operation

  • Mining, crushing and concentrating of ore

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.


  2019 2018  
Production volumes (Metric tons'000)
(Metric tons'000) 1 551 1 619  
LTIFR 0,17 0,19  
Total employees and contractors 2 625 2 262  

R909,3m

Revenue generated

(2018: R831,0 million)


R611,6m

Attributable profit

(2018: R409,8 million)


Refer to Chief executive officer's report

Type of operation

  • Marketing, sales and shipping of ores and alloys

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.


  2019 2018  
Total employees and contractors 57 52  

R644,6m

Revenue generated

(2018: R488,1 million)


R254,9m

Attributable profit

(2018: R164,6 million)


Refer to Chief executive officer's report

Type of operation

  • Operational management, exploration and technical adviser

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.


  2019 2018
Total employees and contractors 96 79

R2 586,0m

Revenue generated

(2018: R2 444,8 million)


R29,8m

Attributable profit

(2018: R65,3 million)


Refer to Chief executive officer's report

Type of operation

  • Marketing of minerals and alloys in the USA

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.


  2019 2018
Total employees and contractors 10 9

R58,7m

Revenue generated

(2018: R53,4 million)


R3,7m

Attributable loss

(2018: R1,43 million)


Refer to Chief executive officer's report

Type of operation

  • Mining and manufacturing of pyrophyllite products

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.


  2019 2018
LTIFR 1,19 2,44
Total employees and contractors 94 78