KROPZ, a phosphate producer majority-owned by Patrice Motsepe’s African Rainbow Capital (ARC), will restructure its Elandsfontein mine in South Africa, putting 238 contractor jobs at risk, Bloomberg reported.
The London-listed company will halt phosphate rock production and sell down stockpiles at the mine, about 110km northwest of Cape Town.
It will instead focus on nanophos, a soft rock that releases phosphate more gradually.
Kropz has invested about $160m in Elandsfontein, its only operating asset. ARC owns about 90% of Kropz after funding the company through a series of bailouts since first investing in 2018.
Mining contractor Trollope Mining Group told employees in a September 2 letter that its Elandsfontein contract would be “drastically reduced if not completely terminated” at the end of November. It said 238 jobs could be lost.
Kropz blamed mounting financial pressure partly on the Middle East conflict, saying disruption to key fertiliser inputs had hit global fertiliser production and demand for phosphate rock.
The company has also struggled to meet production targets at Elandsfontein.
Kropz shares fell 39% in London following the restructuring announcement, cutting its market value to about £9.1m ($12m), from a peak of £120m in 2022.
