contentsreal transformation for sustainability 20 our health and safety policy 21 contents. 1 ......
TRANSCRIPT
®
Group snapshot 1
Group structure 2
Journey to the present 3
Group at a glance 4
Geographic footprint 5
Our operations 6
Aggregates 6
Concrete Based Products 8
Industrial Minerals 10
Contracting International 14
Commodities 16
Quality assurance 18
Real transformation for sustainability 20
Our Health and Safety Policy 21
Contents
1
Group snapshot
The group supplies a broad range of materials ranging from aggregates, concrete products
(bricks, blocks and pavers) to readymix as well as industrial minerals and iron ore. In addition,
Afrimat has established a strong foothold in contracting services comprising mobile crushing,
screening, drilling and blasting; and offering flexibility even beyond its fixed areas of operation.
Afrimat’s flexibility extends further – to project scale – with the group servicing major infrastructure
and construction projects for public sector and government owned enterprises through to small
private sector contracts. The diverse client base acts as a risk hedge and exposes Afrimat to the
full range of construction and related spend in its target regions.
Consistently low staff turnover has resulted in a deep skills pool. Real transformation, starting with
staff and management and extending to community upliftment, is integral to the group’s sustainability.
In addition, environmental conservation is an imperative part of Afrimat’s growth strategy.
Afrimat Limited is a leading black empowerment open pit mining company providing construction materials and
industrial minerals. The group’s core subsidiaries have been in operation for more than 45 years and it is listed in the
“Construction and Building Materials” sector of the JSE Main Board.
2
Group structure
Eastern Cape
Free State
Gauteng
KwaZulu-Natal
Limpopo
Mpumalanga
Western Cape
Northern Cape
Mozambique
Aggregates
Free State
KwaZulu-Natal
Western Cape
Gauteng
Mpumalanga
Mozambique
Concrete-Based Products
Southern Africa
Contracting International
Northern Cape
Commodities
Gauteng
Western Cape
Industrial Minerals
3
Journey to the presentB
A
Prima established
‘63
Lancaster Precast established
‘73
Afrimat formed from merger of Lancaster and Prima
Afrimat listed on JSE Main Board in “Construction and Building Materials” sector
‘06
National footprint into Gauteng, Limpopo and Mpumalanga
‘08
Diversification into industrial minerals with acquisition of Glen Douglas dolomite quarry
‘11
Acquisition of 50,7% stake in Infrasors Holdings Limited
‘13
Established Greenfields
Mpumalanga (Dingwell Quarry Rocky’s Drift)
‘15
Lancaster established
‘65
Empowerment transaction between Mega Oils and Prima
‘03
Acquired Malans Group and Denver Quarries
‘07
Establishment of an employee benefit scheme
‘09
Diversification into clinker market with acquisition of SA Block Group
‘12
Acquisition of 100% Bethlehem quarry
Acquisition of 60% of Diro Iron Ore Mine
Introduction of ARC as a strategic shareholder
‘17
Mozambique
‘14
Acquisition of Cape Lime
‘16
4
Group at a glance
Trust
Accountability
Integrity
Teamwork
Respect
Safety
Customer satisfaction
our values
Inspiring growth through the consistent
delivery of solutions that empower our
people and our customers.
our brand promise
Our Vision is built on:
Well-managed operations
Responsible, honest and motivated personnel
Effective and reliable systems
Delighted stakeholders and satisfied customers
Healthy finances
Zero harm to employees, the community and
environment
Innovation and flexibility
our vision
To be the most respected construction materials and industrial minerals supplier in Africa.
5
Geographic footprint
Mpumalanga
Eastern Cape
Western Cape
Northern Cape
Mozambique
Free State
Gauteng
Limpopo
KwaZulu-Natal
6
Our operations
Aggregates
The Aggregates Division produces aggregates of a wide variety of sizes and
technical specifications, primarily with products including stone, gravel and sand
that are used primarily for large-scale civil engineering and infrastructure
projects. Afrimat’s proprietary commercial quarries – located in eight of South
Africa’s provinces and in Mozambique – also supply the majority of raw materials
for our Concrete Products and Readymix divisions.
Commercial Quarries
Sand Mines
Gravel Mines
Afrimat continually ensures that stone reserves are adequate for the long-term needs of the group.
7
Products
Crushed Aggregates
Sand
Laterite
8
Our operations
Concrete Based Products
The Concrete Based Products Division operates primarily in Gauteng,
KwaZulu-Natal, the Free State and Worcester in the Western Cape,
manufacturing concrete blocks and bricks largely for affordable housing.
Precast factories manufacture concrete bricks, building blocks, brick paving,
walling and moulded concrete products of which the majority carry the SABS
seal of approval.
The Division supplies concrete primarily to large-scale civil engineering and
infrastructure projects through fixed and mobile readymix plants where concrete
is batched on demand and then transported to site by concrete mixer trucks.
Concrete building blocks of various sizes
Cement bricks of different shapes, colours and sizes
Cement pavers of different shapes, colours and sizes
A variety of further precast products
Fixed and mobile readymix concrete batching plants
9
While the mobile concrete batching can be set up in any part
of the country, the fixed plants are based in the Western Cape,
KwaZulu-Natal, Free State and Mpumalanga. Close to 90% of
readymix’s raw material needs (excluding cement) are sourced
from the group’s own quarries. All sales personnel are certified
by the Concrete and Cement Institute of South Africa.
Products
Bricks
Readymix concrete
Blocks
Pavers
10
Our operations
Industrial Minerals
The Industrial Minerals Division supplies the steel industry with metallurgical
dolomite; the construction industry with a variety of aggregate products; and the
agricultural industry with agricultural lime through its Glen Douglas, Marble Hall,
Lyttleton, Vredendal and Langvlei mines.
Cape Lime produces quality mineral products supplied to various niche markets
such as manufacturing industries producing chemicals, filler, glass, paint and
food products.
Metallurgical dolomite
Clinker
Limestone
Burnt lime
Agricultural lime products*
Metallurgical quartzite
Alluvial silica
* (B4303 ACT 36 of 1947)
11
In May 2010, Afrimat acquired the Glen Douglas dolomite mine, which produces an
annual output of approximately 1,5 million tonnes of metallurgical dolomite,
commercial mining and aggregates and agricultural lime products. Glen Douglas is
uniquely positioned to supply customers in the southern parts of Johannesburg and
northern Free State, and has a formidable presence in the Vaal area.
High levels of metallurgical dolomite are produced at sustainable levels and supplied
to the steel industry. The mine can facilitate cheaper transport costs for its customers
through a rail siding equipped with a mechanical loading facility.
Glen Douglas produces a wide spectrum of aggregate products through premium
products such as super sand. The largest segment served is the readymix industry.
Other segments served are the concrete products and brick-making industries. The mine
has a strong brand due to its consistent quality and exceptionally low water demand.
LimeCor was established to service the agricultural industry. The company is a
centralised marketing organisation providing expertise to the farming community.
In March 2013, Afrimat acquired a 50,7% stake in resources group Infrasors, which
produces dolomite, limestone and silica. Afrimat has since incrementally increased its
shareholding in Infrasors and currently owns 97,4%.
Infrasors’ mining assets include:
Glen Douglas
LimeCor and Infrasors
Lyttelton Centurion Mine
Opencast mining and
beneficiation of dolomite
Marble Hall Mine
Opencast mining and
beneficiation of
limestone
Delf Sand Mine
Opencast mining and
beneficiation of
alluvial silica sand
and silica quartz
12
Clinker Supplies Proprietary Limited was acquired by Afrimat in March 2012.
Clinker Supplies operates out of three plants:
Clinker Supplies
Klip
The Clinker Supplies’ reclaiming plant at Klip was installed in 1989.
It was subsequently modified and enlarged and now has the capacity
to process and classify 350 tons of clinker per hour, supplying mainly
processed clinker aggregate to the brick manufacturing industry.
Vaal
Structural components of the Vaal clinker reclamation processing
plant have recently been redesigned and enhanced. The Vaal plant
has a processing capacity of 680 tons per hour, nearly double the
Klip output. The plant performs exceptionally well and processes
approximately 6 000 tons per day, supplying processed clinker
aggregate for brick manufacture, road and civil construction purposes.
The clinker plants at both Klip and Vaal consist of two major areas
of operation:
A mobile clinker reclaiming fleet on top of the dump.
A crushing, screening, grading and loading plant at ground level.
Vierfontein
Clinker Supplies’ operations at Vierfontein are limited to a mobile-
plant reclaiming and loading operation, supplying unclassified clinker
to the cement industry.
13
Cape Lime is a full subsidiary of Afrimat Ltd since April 2016. Operating as a business
unit, Cape Lime now have access to numerous support functions within the Afrimat
group. The acquisition augments Afrimat’s industrial mineral product offering and
further expands its footprint across South Africa. The parties to the acquisition
recognised the scale of potential business opportunities that such a relationship
presented, as Afrimat and Cape Lime have different and complementary strengths.
Cape Lime has two plants in Langvlei and Vredendal. Today Langvlei has three
kilns in operation, calcining dolomite. It also boasts the only pressure hydrator in
South Africa.
The Vredendal operation came into existence in 1981, when the dolomitic aggregate
operation was expanded to include the Mineral Filler Plant. A fluid bed calciner was
commissioned in 2004 producing quality white lime.
As an extension of the Cape Lime marketing division, sales agents are located at
various locations throughout South Africa. Sales also extend to clients across South
African borders.
Cape Lime
14
Our operations
Contracting International
Contract crushing servicesAfrimat operates internationally through a mobile hard rock crushing service.
Plants and equipment on offer include:
Tracked mobile crushers;
Modular semi mobile units;
High specification road materials;
Screening;
Primary and secondary reduction for small to mid size mining; and
Load and haul and stockpile services.
Drilling and blasting servicesAfrimat provides a full package of drilling and blasting solutions for the
construction and junior mining industries. This division specialises in optimising
cost and end results.
Mobile crushing and screening
Drilling and blasting
Bid preparation and contractual services
Mobile/on-site readymix batching
Establishment of commercial quarries
15
The drilling and blasting division operates a modern fleet of Atlas
Copco drill rigs and offers a full complement of highly qualified staff.
Bid preparation and contractual servicesThis division is able to devise offers that are professional,
contractually responsible and well-packaged.
ReadymixOur team has the expertise to establish readymix operations.
The division also offers mobile plant production, pumps and
technical services.
Quality assurance
Readymix’s batching system is fully automated and meets the
standards set by SABS 878:2012 in order to deliver the highest
quality products. Tests are done on request by external accredited
service providers.
With a mobile fleet of over 20 crushers, this division ensures flexibility.
Products
All grades of concrete;
Pumped readymix concrete;
Readymix mortars and plasters;
Self-compacting concrete;
Exposed aggregate concrete; and
Pigmented coloured concrete (enquire regarding availability).
Commercial quarriesAfrimat are also experts in the establishment of commercial
quarries, including crushing and screening of all products.
16
Our operations
Commodities
Afrimat’s Commodities Division was established in 2016 with the acquisition of
an Iron Ore mine in the Northern Cape.
The Division focuses on consistently and reliably supplying quality iron ore to
local and international markets.
This is achieved by leveraging the group’s core competencies in uniquely
positioned iron ore mines, in terms of quality, size and location.
The consistent drive towards efficiency and cost effectiveness within its current
operations, positions the group well within the iron ore sector.
Afrimat Iron Ore (Northern Cape)
17
Iron ore
18
Quality assurance
The Quality-at-Source strategy of the Aggregates Division is founded on quality assurance being the responsibility of each successive link in the production process.
In-process quality control is ensured by constant
monitoring and evaluation – a computerised
maintenance strategy is employed to ensure
absolute reliability and minimum downtime.
A zero-tolerance approach is adopted towards
defects or deviations from quality standards
and specifications.
19
Readymix’s batching system meets the standards set by the South African
Readymix Association (“SARMA”) in order to deliver the highest quality products.
For each project, care is taken to ensure that the customer’s requirements are
met in terms of the specific mix designs, quality assurance and control.
Readymix is supplied out of 22 plants, all of which are fully certified by SARMA
for quality, safety and the environment.
20
Real transformation for sustainability
Social Responsibility
Afrimat prioritises ongoing training in order to raise standards of performance and productivity, offering internal courses and using
external suppliers to facilitate continuous development of its skills base.
A focused training division is dedicated to providing all employees with the opportunity of expanding their skills and qualifications.
In line with succession planning, candidates have been identified and are receiving personal mentorship in furthering their formal
education and operational knowledge. Focus is on the areas of mechanical and civil engineering as well as management,
where previously disadvantaged candidates have been appointed as Trainee/Assistant Managers as part of two-three year
development programmes.
Skills Upliftment
Afrimat adopts a broad-based approach to social responsibility and is committed to expenditure in terms of the social and labour
plans required by the Department of Mineral Resources. The group accordingly undertakes related social development
responsibilities with each mining licence. These include the establishment of community centres, school facilities, vegetable
gardens, salaries for math teachers and infrastructure including roads and drainage. The group targets 1% of profit after tax for
social responsibility projects by each subsidiary. An annual progress report in this regard is submitted to the Department of
Mineral Resources.
Community Upliftment
Afrimat’s commitment to real and tangible transformation is evident in its progressive strides made in BEE. In 2016, Afrimat
escalated direct black ownership in the group to 30,25%, putting the group ahead of Mining Charter requirements for 2014.
The group’s main BEE partners are now African Rainbow Capital, Afrimat BEE Trust, Mega Oils Proprietary Limited and Joe Kalo
Investments Proprietary Limited.
BEE
21
Our Health and Safety Policy
Afrimat prioritises health and safety as the key to successful and sustainable operations. Management is primarily
responsible for implementing Afrimat’s extensive Health and Safety Policy. The implementation is closely monitored
and all incidents are tracked on a monthly basis. This underpins the ongoing process of identifying new risks and
developing procedures to mitigate these. Management and the group SHE departments conduct regular
inspections to identify areas of further improvement while third party audits are conducted by ASPASA and
SARMA. Hazard Identification Risk Analysis (“HIRA”) are implemented for each work process at all operations.
A dedicated Safety Committee is committed to researching new technological advances in order to enhance
and maintain a superior safety standard throughout the group’s operations.
All new employees attend health and safety induction programmes, while existing employees receive
ongoing training to ensure awareness and strict adherence to the Health and Safety Policy.
Further, the group’s concern about the HIV/AIDS pandemic threatening South Africa has led to an active
HIV/AIDS awareness drive.
Our Environmental Management ProgrammesThe group manages its environmental footprint through formal Environmental Management
Programmes (“EMPs”) in line with local and international regulations and best practice. The EMPs
focus on responsible mining, reducing emissions through upgrades to diesel-driven equipment,
decreasing noise pollution, recycling products where viable, and maintaining all plants at optimum
working levels and efficiency. Active programmes to reduce the group’s carbon footprint have
also recently been introduced.
With Afrimat committed to continually upgrading and improving its EMPs, it has today become
well-renowned and respected in the industry in this regard. Further, third party audits by
ASPASA, SARMA and external consultants support our environmental conservation and
protection efforts and provide added opportunity for refinement of its EMPs.
Environmental progress reports are submitted annually to the Department of Mineral
Resources in terms of mining rights requirements. In addition, mine rehabilitation
assessments are conducted by external consultants and provisions are raised to meet
these future obligations.
AddressTyger Valley Office Park No. 2, Cnr. Willie van Schoor and Old Oak Rd, Tyger Valley(PO Box 5278, Tyger Valley, 7536)
Telephone+27 21 917 8840
Facsimile+27 21 914 1174
Websitewww.afrimat.co.za