[Ferro-Alloys.com] Mining company owned by Africa's first Black billionaire unveils plans to cut jobs

The decision underscores ongoing challenges in South Africa’s manganese mining sector and broader commodity price pressures.

Key Points

•      African Rainbow Minerals to close loss-making Cato Ridge manganese plant, cutting hundreds of jobs by August 2025.

•      Assmang sells assets worth R453 million ($26 million) and divests Malaysian stake to boost ARM’s liquidity amid mining sector pressures.

•      ARM’s headline earnings drop 49% as commodity prices fall; company pivots strategy amid environmental and market challenges.

African Rainbow Minerals (ARM), the diversified mining company owned by Africa's first Black billionaire Patrice Motsepe, announced plans to slash jobs as it prepares to permanently close its loss-making Cato Ridge Works (CRW) plant.

The decision underscores ongoing challenges in South Africa’s manganese mining sector and broader commodity price pressures.

Cato Ridge closure signals shift in mining strategy

The Cato Ridge Works plant, operational since 1956 and crucial for beneficiating manganese ore from Northern Cape mines, has been a financial drain on ARM’s joint venture Assmang. Assmang, equally owned by ARM and Assore, is one of the world’s top ten producers of ferromanganese.

The company confirmed the permanent shutdown of CRW, which currently employs 358 permanent staff and 193 contractors. While it has not disclosed the exact number of job cuts, all affected employees are set to be retrenched by Aug. 31, 2025.

Assmang plans to remediate the CRW site and transform it into a commercial and logistics hub, signaling a strategic pivot from manganese beneficiation to property redevelopment.

Asset sales and strategic deals to raise cash

In parallel with the closure, Assmang is selling key assets, including land parcels, properties, and houses, to Assore SA PropCo for R453 million ($26 million). This transaction, signed in late June 2025, involves multiple entities within the Assore and ARM group.

Additionally, Assmang is divesting its 54.36 percent stake in Malaysia-based Sakura to Assore, with proceeds expected to generate R900 million ($51.2 million) in cash for ARM. This move is part of ARM’s broader strategy to strengthen liquidity amid sector headwinds.

ARM navigates industry pressures amid earnings decline

ARM, with diversified interests across iron ore, manganese, platinum group metals (PGMs), coal, and base metals, reported a 49 percent drop in headline earnings to R1.52 billion ($83 million) for the first half of 2025. Weak iron ore and PGM prices have weighed heavily on profitability.

The company also faces environmental scrutiny, notably a lawsuit by WWF concerning its $160 million Elandsfontein phosphate mine near South Africa’s Langebaan Lagoon. To manage cash flow, ARM hedged 18 million shares in Harmony Gold, raising funds while maintaining upside exposure.

Patrice Motsepe’s African Rainbow Minerals continues to adapt its portfolio amid volatile commodity markets and operational challenges, balancing job cuts with asset sales and strategic repositioning to safeguard its long-term growth in the mining sector

July 1, 2025

• [Editor:tianyawei]