Phosphate rock miner Kropz a standout performer for ARC in 2021

KROPZ was a standout performer in the portfolio of African Rainbow Capital (ARC), the private equity fund founded by mining magnate, Patrice Motsepe.

The phosphate miner’s contribution to the fund value rose to 15.2% during the six months ended December from 8.9% as at June, said BusinessLive.

ARC Fund’s investment in Kropz was valued at R2.134bn, resulting in a fair value gain of R860m. The fair value gain from ARC financial services was R643m.

In September, ARC provided Kropz with a R200m lifeline after the company said it was facing a funding shortfall of $8.5m for the development of its Elandsfontein phosphate mine in South Africa’s Western Cape province.

The Elandsfontein project has encountered multiple problems since its launch including opposition from environmentalist groups as well as commissioning issues that required a re-engineering of the plant. Transnet also said it was unable to handle Kropz phosphate production from its Saldanha port – a headwind since resolved.

The first exports of phosphate rock from Elandsfontein are due to be shipped during the current quarter.

According to an update in January, Elandsfontein’s earthworks and civil construction were complete, as well as the fabrication and erection of structural steel platework and piping  while mechanical equipment had been installed.

Kropz is also developing the Hinda phosphate project which is located about 40km north of Pointe-Noire in the Republic of Congo.