Growth through diversification
Contents Page Group structure 1 Group at a glance 2 Geographical footprint 3 Our operations 4 Group snapshot 14 Journey to the present 15 Real transformation for sustainability 16 Our Health & Safety Policy 17 Our Environmental Management Programmes 17
Group structure Aggregates Concrete Products Readymix Industrial Minerals Contracting Eastern Cape Free State Eastern Cape Gauteng Southern Africa Free State KwaZulu-Natal Free State Gauteng Western Cape KwaZulu-Natal KwaZulu-Natal Gauteng Western Cape Limpopo Mpumalanga Namibia Western Cape 1
Group at a glance Vision To be the most respected construction materials and industrial minerals supply company in Southern Africa. Our vision is built on: Well-managed operations Innovative, fl exible solutions Responsible, honest and motivated personnel Effective, reliable systems Being the preferred business partner More than satisfi ed stakeholders Healthy fi nances Concern for society and the environment Values Our intrinsic values that form the golden thread weaving through every aspect of our culture and performance are: trust integrity respect accountability teamwork customer satisfaction 2
Geographical footprint Aggregates Concrete Products Readymix Industrial Minerals Contracting Limpopo Namibia Mpumalanga Gauteng North West KwaZulu-Natal Free State Northern Cape Eastern Cape Western Cape 3
Our operations All our products are recyclable Aggregates Commercial Quarries Sand Mines Gravel Mines Mobile Crushing Drilling & Blasting The division produces aggregates of a wide variety of sizes and technical specifications, primarily with products including stone, gravel and sand mainly for large-scale civil engineering and infrastructure projects. It also provides professional contracted drilling & blasting services. Reflecting cohesive vertical integration, Afrimat s proprietary commercial quarries located in seven of South Africa s provinces and in Namibia also supply the majority of raw materials for our Concrete Products and Readymix divisions. Afrimat continually ensures that stone reserves are adequate for the long-term needs of the group. Products Crushed Aggregates Sand Laterite Services Drilling & Blasting Crushing & Screening Transport & Logistics Earthmoving & Plant Hire 4
Quality assurance The Quality-at-Source strategy of the Mining & 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. Services include drilling & blasting. 5
Our operations (continued) Concrete Products 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 The division operates primarily in KwaZulu-Natal, the Free State and Worcester in the Western Cape, manufacturing concrete blocks and bricks largely for low-cost housing. Precast factories specifically manufacture concrete bricks, building blocks, brick paving, walling and moulded concrete products, which all carry the SABS seal of approval. Certain factories within the division also supply ready mixed concrete. In line with the group s vertical integration policy 90% of raw materials needs (excluding cement) is sourced from the group s own quarries. 6
SA Block Afrimat acquired SA Block (Pty) Limited in 2012. As the leading manufacturer of clinker bricks in South Africa, it comprises 11 brick-making machines with a total capacity of 1,2 million bricks per day. All bricks are SABS approved. Bricks, blocks, pavers, etc. Our products carry the SABS mark. 7
Our operations (continued) Readymix Fixed and mobile concrete batching plants 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. While the mobile concrete batching can be set up in any part of the country the fixed plants are based in Western Cape, KwaZulu-Natal and Orange Free State. 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 & Cement Institute of South Africa. 8
Quality assurance Readymix s batching system meets the standards set by SARMA (South African Readymix Association) 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. Supplied out of 22 plants, all of which are fully certified for Quality, Safety and the Environment by SARMA. 9
Our operations (continued) Industrial Minerals Metallurgical dolomite Clinker Lime Stone Agricultural lime products* Metallurgical quartzite Alluvial silica Afrimat s Glen Douglas quarry is uniquely positioned to supply customers in the southern parts of Johannesburg, 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, the largest market sector is the readymix industry, with other markets including the concrete products and brick making industries. Agricultural lime is a premium product and provided to the agricultural industry. In March 2012 Afrimat acquired Clinker Supplies which provides a mobile clinker reclaiming fleet as well as crushing, screening, grading and loading services. * (B4303 ACT 36 of 1947) 10
Infrasors In March 2013, Afrimat acquired a 50,7% stake in resources group Infrasors Holdings Limited, further expanding its geographic reach and foothold in industrial minerals. Infrasors produces metallurgical dolomite, limestone and silica. www.infrasors.co.za 11
Our operations (continued) Contracting Drilling & blasting Mobile/on-site readymix batching Mobile crushing and screening Drilling & blasting services Afrimat provides a full package of drilling & blasting solutions for the construction and junior mining industries. It offers blast designs for bulk blasting in quarry and opencast mining as well as for specialised and restricted blasting in built-up areas. This division specialises in optimising cost and end results. Drilling & blasting operates a modern fleet of Atlas Copco drill rigs and offers a full complement of highly qualified staff. In this regard, access to industry specialists and consultants ensures that the specialised services exceed customer expectations. Contract crushing services Afrimat operates internationally through a mobile hard rock crushing service. Plant and equipment on offer include the following: Tracked mobile crushers; Modular semi mobile units for larger projects; High specification road materials such as G1 base course and road stone products; Screening; Primary and secondary reduction for small to mid size mining; and Load and haul and stockpile services. Management personnel ensure optimal safety standards are employed to minimise client risk. 12
Bid preparation and contractual services The division uses its wide range of expertise and knowledge in fields such as drilling & blasting, load and haul, crushing and readymix concrete processing to prepare professional, contractually responsible and packaged bids for a host of high profile clients in the construction industry. With a mobile fleet of over 20 crushers this division ensures flexibility. 13
Group snapshot Afrimat Limited is a leading black empowered open pit mining company providing construction materials and industrial minerals. The group is listed in the Construction & Building Materials sector of the Main Board JSE Limited and Afrimat s core subsidiaries have been in operation for more than 45 years. The group supplies a broad range of materials ranging from aggregates, concrete products (bricks, blocks and pavers) to readymix as well as industrial minerals. In addition Afrimat has established a strong foothold in contracting services comprising mobile crushing, screening, drilling & blasting, offering flexibility even beyond fixed areas of operation. Our 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 our growth strategy. Afrimat s flexibility extends further to project scale with the group servicing major infrastructure and construction projects for public sector and government owned enterprises erprises 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. 14
Journey to the present 1963 Prima established 1965 Lancaster established 1973 Lancaster Precast established 2003 Empowerment transaction between Mega Oils and Prima 2006 Afrimat formed from merger of Lancaster and Prima Afrimat listed on Main Board of JSE in Construction and Building Materials sector 2007 Acquired Malans Group and Denver Quarries 2008 National footprint into Gauteng, Limpopo and Mpumalanga 2009 Afrimat BEE Trust acquired 15,8% interest in group Large-scale infrastructure contracts secured BEE shareholding increased to 26,1% Acquisition of Blue Platinum Quarry 2011 Diversification into industrial minerals with acquisition of Glen Douglas dolomite quarry 2012 Diversification into clinker market with acquisition of SA Block Group 2013 Acquisition of 50,7% stake in Infrasors Holdings Limited 15
Real transformation for sustainability Social Responsibility Skills Upliftment 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. Community 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 such as 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. BEE Afrimat s commitment to real and tangible transformation is evident in its progressive strides made in BEE. In 2009 Afrimat escalated direct black ownership in the group to 26,1% when it assisted the Afrimat BEE Trust to acquire 15,8% of the company s issued share capital, putting the group ahead of Mining Charter requirements for 2014. The group s main BEE partners are now Mega Oils (Pty) Limited and Joe Kalo Investments (Pty) Limited both 100% black-owned companies with historic ties to the founding companies in the group as well as the more recently-established Afrimat BEE Trust benefiting black Afrimat employees. In 2012 the Afrimat BEE Trust increased its shareholding in Afrimat to 21%. 16
Our Health & 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 & 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. HIRA (Hazard Identification Risk Analysis) 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 our 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 & 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 nt Programmes The 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. 17
Telephone +27 21 917 8840 Facsimile +27 21 914 1174 E-Mail info@afrimat.co.za Website www.afrimat.co.za Address Tyger Valley Offi ce Park No.2, Cnr. Willie van Schoor & Old Oak Rd, Tyger Valley (PO Box 5278, Tyger Valley, 7536)