PATRICE Motsepe’s sprawling mining conglomerate, African Rainbow Minerals (ARM), has restructured manganese processing activities held through Assmang, with the closure of the Cato Ridge ferromanganese smelter, sale of the properties to Assore and disposal of Assmang’s stake in Sakura Ferroalloys to Assore.
“Decisively addressing these business interests of Assmang has been an important strategic imperative for ARM,” the group said.
Assmang, which is 50% held by each of ARM and Assore, also owns manganese and iron ore mines in the Northern Cape.
The closure of Cato Ridge Works has been on the cards for some time as its operating costs – particularly Eskom electricity – have soared over the past decade. ARM said the business’s financial losses were unsustainable and the decision has been taken to close it and retrench the employees from end-August.
The land and buildings will be sold to an Assore subsidiary, Assore SA PropCo, for R453 million payable to Assmang. Assore PropCo will develop some of the property for the benefit of the host community and rehabilitate part of the area, but Assmang will be responsible for the clean-up and remediation.
Assmang will also sell to Assore its 54.36% of shares in Sakura Ferroalloys of Malaysia, subject to certain conditions. When the deal has closed, Assmang will distribute R900 million in cash to ARM.
