Patrice Motsepe

PATRICE Motsepe’s decades-long faith in Harmony Gold finally paid off as the gold producer’s share price doubled last year. Motsepe has refused to sell down African Rainbow Minerals’ (ARM) 12% stake in Harmony even when it contributed minimally to income. But then in June, ARM hedged 24% of its Harmony stake with a view to raising funds in future. Insiders say Motsepe will not part with Harmony because he sees its Wafi-Golpu copper/gold project in Papua New Guinea as a game changer. If only ARM’s platinum assets were as rosy.

Instead, a controversial decision to buy Bokoni Platinum Mines in 2022 for R3.5bn came home to roost in the form of a R2.2bn write-down and suspension of output amid depressed platinum group metals prices. It’s worth remembering that industry analysts were surprised when the deal was announced as mining conditions are notoriously difficult at Bokoni. Motsepe reckoned a new mining method would be successful. ARM also took decisive steps in its ferrometals division held through Assmang.

In November, Assmang closed the Beeshoek iron ore mine in the Northern Cape following a decline in offtake from Arcelor Mittal South Africa, a steelmaker. Assmang previously closed the Cato Ridge ferromanganese smelter and sold the properties to Assore, its joint venture partner. Assmang also sold its stake in Sakura Ferroalloys. The work never stops for Motsepe. He’s also defending a $195m legal suit brought by a US company that alleges ARM was party to an unfairly cancelled graphite deal in Tanzania.