Integrated Annual Report 2019

Our strategy

Strategy

The strategy of the Assore group is to anticipate and react to changes in the markets in which it operates, to align and manage existing and available minerals and production with international market expectations, and to do so on a sustainable basis. The group seeks to optimise logistical capacities, both locally and globally, in a manner that is consistent with production by group operations. Key performance indicators (KPIs) for the group include the following elements, as more fully set out and measured here:

Strategy

KEY PERFORMANCE AND FUTURE PERFORMANCE INDICATORS

The following criteria form the group’s KPIs and are linked to short and medium-term future performance objectives, as follows:

      ASSMANG       ASSORE SUBSIDIARIES

Expansion and replacement projects completed on time, to specification and within budget

measured in the “Chief executive officer’s report

   
  • the execution of the sustainability and expansion project at Black Rock Manganese Mines, of which the expected year of completion is 2021, to increase and sustain production from the Nchwaning Mine to higher volumes, achieving sustainable production in excess of 4 million tons per annum of manganese ore in the long term;
  • following the successful commissioning and ramp up of both furnaces at Sakura Ferroalloys in Malaysia, to maintain high-carbon ferromanganese (HCFeMn) production on both furnaces at a total production capacity of approximately 240 000 tons per annum;
  • the continued optimisation of alloy production at the group's ferromanganese facilities in order to mitigate increases in the price of electricity, which are expected to exceed infl ation rates; and
  • execution of the recently approved project to recapitalise and increase production at the Gloria Mine.
     
  • continuing (via IronRidge Resources) to explore early-stage opportunities mainly in gold and lithium in West Africa; and
  • enhancing the group's position in South Africa's chrome ore market and consolidating the production output of Dwarsrivier at levels of approximately 1,6 million tons per annum

Sustainable exploitation of mineral deposits

measured in “Mineral Resources and Reserves report”, located on the group’s website under “Annual reports”

   
  • maintaining steady-state production performance from Khumani Iron Ore Mine, by optimising the off-grade washing plant and the Wet High Intensity Magnetic Separation (WHIMS) plant, to ensure realisation of planned life of mine; and
  • optimising the Life of Mine at Beeshoek Iron Ore Mine with the blending of ore from the Village Pit with other pits, also pursuing options to treat historical off-grade dumps to produce on-grade product.
     
  • maintaining steady state production levels at Dwarsrivier Chrome Mine, while assessing the long-term life-of-mine plan

Optimise prices and tonnages sold per segment and regional concentration of customers

measured in the “Chief executive officer’s report

   
  • continuing to develop the group's market for the material produced from the upper seam, as well as alternative grades across the lower seam at Nchwaning Manganese Mine; and
  • the continued optimisation of alloy production at the group's ferromanganese facilities in order to mitigate increases in the price of electricity, which are expected to exceed inflation rates.
     
  • maximising the production of chemical grade and foundry grade concentrates at Dwarsrivier

Ongoing improvement in the group’s safety record

measured in “Sustainability report”, located on the group’s website under “Annual reports”

   
  • continued positive trends in safety performances.
     
  • continued positive trends in safety performances

Compliance with the requirements of the Mining Charter#, specifically those relating to black economic empowerment (BEE)

measured in “Black economic empowerment status report

   
  • the objective is to ensure compliance with the revised Mining Charter 3 within the time limits for implementation.
     
  • the objective is to ensure compliance with the revised Mining Charter 3 within the time limits for implementation

# Pursuant to the Mineral and Petroleum Resources and Development Act (the MPRD Act).