Open-pit miner Afrimat’s share price rose 6.4%, to R29.25 on Tuesday after it said it was buying the 40% of iron-ore miner Diro it did not already own. Afrimat acquired its initial 60% of Diro for R276m in July 2016. The deal was announced in October, when the Northern Cape-based Diro was in business rescue owing R483m to creditors, including Investec. Afrimat said on Tuesday that a notice had been filed with the Companies and Intellectual Property Commission, enabling Diro to exit business rescue. Diro had also concluded a sales agreement for its iron ore and would commence deliveries. When Afrimat announced the deal in October, it said Diro had proven reserves of 5.6-million tonnes that could be mined and upgraded through its beneficiation plants. It had about 1.3-million tonnes of sellable fine-ore stockpiles. The mine sold its output via Sishen to the Saldanha iron-ore export channel. “Given Afrimat’s track record in turning around struggling businesses, and as part of its diver...
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