Afrimat has entered into an agreement with Aquila Steel and Rakana Consolidated Mines, to purchase 100% of the Gravenhage manganese mining right and associated assets.
Gravenhage is a long-life near-development manganese resource situated approximately 50 km’s north of Hotazel and approximately 120 km’s from Afrimat’s existing Demaneng mine. It is one of the last independently owned, undeveloped manganese deposits in South Africa.
It is situated in the northern region of the globally important Kalahari Manganese Field. A definitive feasibility study was finalised confirming the technical and economic feasibility of the Gravenhage manganese project based on an initial open cut operation with the potential for subsequent underground mining. The resource and its significant potential has been well defined by continued exploration drilling.
This expansion into manganese is a continuation of Afrimat’s bulk commodities growth and diversification strategy. Gravenhage’s proximity to Afrimat’s existing iron ore operations in the Northern Cape provides operational and logistical synergies.
The successful development of Gravenhage will increase Afrimat’s scale in the ferrous-metal value chain and its exposure to foreign currency denominated earnings. The purchase consideration of USD45 million and ZAR15 million, respectively, is structured according to a toimescale schedule.