African Rainbow Minerals to close Cato Ridge Works and retrench the employees
Image: Ingi Salgado
African Rainbow Minerals (ARM) on Tuesday said its Cato Ridge Works operations (CRW) and business would close permanently, and all affected employees would be retrenched on August 31, 2025. Its Malaysia business is also being sold.
The CRW joint venture between ARM, which has well known South African businessman Patrice Motsepe as its biggest shareholder, and Assmang employed about 600 employees. ARM stated that a structured and comprehensive consultation process in accordance with Section 189 of the Labour Relations Act had been completed.
'This decision has been reached after a comprehensive review of CRW's operational and financial position. Despite sustained efforts to explore alternatives to closure, the operation has continued to experience significant and unsustainable financial losses,' ARM's directors said in a statement on the JSE's news service.
They indicated that the CRW complex would be remediated and, together with the vacant land, redeveloped into a commercial and logistics hub 'that should in future create significant economic activity and employment in the area.'
Assmang's board had approved the sale by Assmang to Assore SA PropCo, an Assore subsidiary, of certain land parcels, properties, and houses on the terms a sale agreement signed on June 27, 2025, between Assmang, Assore SA PropCo, Assore, Cato Ridge Development Company (CRDC), Feralloys, and ARM.
The so-called 'Cato Ridge Transaction' will be implemented in two phases: Phase 1 comprises the purchase by Assore SA PropCo from Assmang of certain land and houses situated on or close to CRW, which will be developed by Assore SA PropCo, together with a sale by Assore SA PropCo of a portion of those properties to certain host communities for no consideration.
Phase 2 will comprise the sale and purchase by Assore SA PropCo from Assmang of the remaining land on which CRW is located. Assore SA PropCo would pay R453.23 million to Assmang.
Assmang is responsible for the implementation of the clean-up and remediation, but Assore SA PropCo would accept certain responsibilities regarding the clean-up and remediation of specific portions of the land being sold.
Among the conditions were that Assmang complete the construction and installation of a reverse osmosis water plant and brine dam, and Assmang had to comply with applicable environmental law.
In addition, Assmang would dispose of its 54.36% interest in Malaysia manganese alloy producer, Sakura, to Assore, following which Assmang was expected to distribute R900m in cash to ARM.
ARM's share price gained 0.59% to R173.08 on the JSE Tuesday afternoon, with the price having fallen over 20% over the past 12 months.
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