RAILED iron ore export volumes had fallen about fifth in the first six months of Afrimat’s 2025 financial year compared to the same period last year.
The mining and industrial minerals company said today in a pre-close statement for the six months due to end on August 31 that the decline in export volumes was owing to continued problems at Transnet Freight Rail, the government-owned rail and ports operator.
This was owing to “limited availability of locomotives, derailments and maintenance downtime at Transnet continue to constrain the performance of export iron ore,” the company said. In addition, iron ore prices had also traded in a low band although Afrimat said it continued to favour the market owing to its low cost base.
Overall, minerals volumes fell in the first six months partly owing to production problems at local steelmaker ArcelorMittal SA, which Afrimat supplies.
The company’s recently acquired Lafarge business also remained lossmaking despite efforts to improve the efficiency of its cement manufacturing operations.
On the upside, Afrimat acknowledged the feel-good factor of the newly instituted Government of National Unity in South Africa, as well as the end of loadshedding, both of which boded well for the second half of the financial year.
At Nkomati Anthracite, there was an improvement in production from the open pits while the removal of an Eskom powerline – which took a “frustratingly long approval time” – has also assisted with “the ease of open cast mining operations”. Mining Nkomati’s underground operations was “difficult due to geological limitations”.
Afrimat is due to provide a further update in September when it has greater certainty over its numbers. A pre-close briefing sessions regarding the six months ended August 31 will be on August 23.
