Diversification yields dividends for Afrimat
Bulk commodities business shields the open-pit mining group from poor performance by the construction segment
Open-pit mining group Afrimat’s diversification strategy paid off in the year ended-February as its bulk commodities business countered poor performance from its other segments. Higher iron ore prices from the recently-acquired Demaneng mine in the Northern Cape boosted the firm’s performance, despite the lacklustre performance of the construction business and mixed showing of the industrial minerals operations. Afrimat CEO Andries van Heerden on Thursday said the bulk commodities business was the star performer in the year, while industrial minerals had a slow first half. “We all know what the situation is with construction right now. We saw a decline in the construction materials’ profitability. But (construction materials) is still a significant part of our business. It accounts for almost half of our profits. Given the really tough market out there, I am very happy with what we achieved,” Van Heerden said.
He said Afrimat, a supplier of materials sourced from open-pit mi...
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