COMPANY PROFILE
2013
Imerys South Africa/ Rhino Minerals
A mining company that can take the heat
CompANY PROFILE
A mining company that can take the heat Editorial: Joe Forshaw Production: James Clark
Imerys South Africa is the holding company that owns Rhino Minerals, Samrec, Ecca Holdings and Calderys, some of the country’s most successful mining and manufacturing operations. Head of strategy and corporate services, Xolisa Mvinjelwa, tells IndustrySA about the company’s plans for African expansion.
Being one of South Africa’s largest industry sectors and one of the industries behind the historical development of the country, it is no surprise that mining attracts the attention of foreign investors. According to the Chamber of Mines (2012), the industry attracts foreign savings of R1.9 trillion or 43% of value of JSE. Companies from the world’s most powerful nations all have significant interests in South African mining operations and, even though the mining industry has faced noteworthy challenges, investment into the sector continues to roll in and benefits to the country continue to be realised. One foreign investor who has seen, and is still seeing, the benefits of investing in South African mining is French concern Imerys. Imerys is a world leader in mineral based specialities for industry and in South Africa the company owns various
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mines and manufacturing facilities through its subsidiary, Imerys South Africa. Head of strategy and corporate services for Imerys SA, Xolisa Mvinjelwa, tells IndustrySA more about the company’s structure explaining that the acquisitions of Rhino Minerals and Samrec in the ‘90s were milestones for the company. “Imerys South Africa is a holding company and it was formed in 2003 as a result of the mineral resources and petroleum development act (MRPDA) which required companies to embrace black economic empowerment,” he says. “Damrec is a subsidiary of the Imerys Group and is based in Paris, France and Damrec owns 74% of Imerys South Africa whilst the remaining 26% is owned by Nghala Mining. “Imerys South Africa has four operating companies, three of those operating companies are in mining and one is in
Imerys South Africa/Rhino Minerals/SAMREC
manufacturing. The three in mining are Samrec, Rhino Minerals and Ecca Holdings and the manufacturing entity is Calderys South Africa.” Samrec and Rhino Minerals are two of the country’s leading producers of andalusite, an aluminium nesosilicate mineral, used mainly for manufacturing and refractory purposes. “Samrec mines and processes andalusite and the mining operation is in Lydenburg, called Krugerspost,” says Xolisa. “This mine produces K ranges of products such as K57 and K55, K standing for Krugerite. “Their other operation is a processing plant in Limpopo which receives materials from various mines. There is a crushing and screening plant and it produces various fractions, mostly for export but also for local consumption. “Rhino Minerals has various mines. There are two main operating mines; Rhino Andalusite mine in Thabazimbi -
the biggest andalusite mine in South Africa - and Annesley mine. “Annesley mine has just reopened and we had to relocate a community that was next to the reserves for expansion purposes so it is almost new in a way,” he says. The third mining operation is focused on clay and more specifically, bentonite, an absorbent aluminium phyllosilicate or impure clay consisting mostly of montmorillonite. “Ecca Holdings mines clay,” Xolisa explains. “It has a bentonite operation in the Western Cape called Cape Bentonite. The other operation in Mpumalanga produces clays, normal refractory clay and also ceramic clay. We have a processing plant which beneficiates bentonite in Gauteng in Midrand. “All of these subsidiaries are fully owned by Imerys South Africa. “Damrec came into South Africa in around 1992, just
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Call today for an ecological solution to your waste management problems WASTE LEGENDS – Focussing on the 3 R’s of waste management - Recycle, Re-Use and Reduce waste wherever possible “We are a total waste management company. We deal in different waste streams including hazardous waste. Domestic waste is disposed of at any local landfill site with necessary permits. We recycle almost all wastes generated by the mining industry thus ensuring waste minimisation. We buy and sell all scrap materials namely: scrap steel, copper, aluminium, brass, stainless steel, lead, batteries, copper cables, mining hoses, HDPE and LDPE pipes, hard hats, gum boots etc.” Waste Legends was founded in 2000 by Damara Khoza in Lydenburg, Mpumalanga. The company was originally known as Lydenburg Scrap Metals but quickly moved from working with just scrap metal to become a total waste management company and took on the name Waste Legends.
Our Vision is: • Zero Harm to people and environment • Support and Empower local people • Ensure best service possible to the mine to show our gratitude for the business given to us Waste Legends deal with all hazardous waste including oil which is purchased from the mines, stored and then sold to Oilkol for safe disposal after which a safe disposal certificate is then passed on to the mine.
Waste Legends Address: Contact Person: 9 Chrome Street Thokozani “Damara” Khoza PO Box 8217 Tel: 013 235 3047 Lydenburg Fax: 013 235 4329 1120 Cell: 072 148 1539
CompANY PROFILE
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Imerys South Africa/Rhino Minerals/SAMREC before the elections and the transition phase. They acquired Samrec in ‘92 and Rhino Minerals in ‘99. Rhino Minerals was acquired from Anglovaal whilst both the Samrec and Ecca Holdings operations were acquired from Cullinan Holdings.”
line kilns and in the gold industry for converting gold ore so there is a link to consumption of these final products. If steel usage globally increases, it is good for our industry. We are part and parcel of these global markets and so are affected as they change.”
GLOBAL MARKETS
GROWTH FOR IMERYS
The minerals mined by Rhino Minerals, Samrec and Ecca Holdings are usually exported but some are retained and sold in domestic markets. Some of the andalusite is sold internally to Calderys who are themselves an industry leader in the production of specialist products. “The products of the mines do not go to Calderys. Of the andalusite, 13 grades are sold to Calderys but the bulk of the product is exported. Around 75% is exported and 25% is sold locally. We have a set of customers who are in the refractories business who use these products to produce monolithics and refractory bricks. “Calderys also play in this particular space. They will produce monolithic goods and powder for refractories and use in high temperature applications,” says Xolisa. He is also emphasises that the mines owned by the business have long useful lives remaining meaning that there will be no shortage in production and export values should remain strong. “All of the mines are in a healthy state of repair and have an average of 20 years remaining life.” The real challenge for the company is the tough global economic climate and the difficulties it has caused in certain markets. However, Xolisa explains that the expansion of the Rhino Minerals Annesley mine was a tactic to combat the challenging environment. “We are restricted by the global markets however; our intention is that of growth,” he says. “That is why we have just finished the expansion and relocation of the community at Segorong and expanded our Annesley operation. It was an old mine and the reserves were depleted. Next door, in the same mining right area, we had a community sitting on top of the reserves so we had to relocate that community to gain access to the reserves. This has allowed us to extend our reserve base by 20 years. We are here to stay and we are always looking for new opportunities and Imerys globally has an appetite for growing its businesses the only challenge has always been the global market which we are sure will improve. “The global slowdown is partially responsible for the slow market. In addition, our products being industrial in nature, used in both the ceramics and refractories industries, are high-tech products. They can be used in the steel and iron industries to line the furnaces; blast oxygen furnaces and ladles etc. They are also used in the cement industry to
Rhino Minerals, Samrec, Ecca Holdings and Calderys can all look forward to growth as Imerys is known as the leading andalusite producer worldwide and the mineral can only be found in a handful of other countries where it is depleting quickly. The demand for monolithic products continues to grow so Imerys South Africa is looking to expand its operations and take advantage of other mineral rich southern African nations. “Globally, Imerys is huge, operating in over 44 countries,” says Xolisa. “Its turnover is close to €4 billion, it has close to 16,000 employees and South Africa is quite a small part but it remains a very strategic component of the group because of where it is placed in terms of minerals. You can only find andalusite in four main countries - South Africa, where it is abundant; China, where logistics make it difficult to mine; France, where reserves are dwindling and Peru. It is a strategic mineral which is required in certain industries and
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CompANY PROFILE it is good for Imerys to have it in the portfolio. “South Africa is also always a springboard to doing business in the rest of southern Africa. There has been stability in the neighbouring countries and this is creating opportunities as these countries are rich in minerals which we believe we could tap into. In the long-term, we can grow the business, through acquisitions and developments, across the continent.” He refuses to rule any countries out saying that the expertise developed at Samrec, Rhino Minerals and the other companies under the Imerys brand can all contribute their experience to African expansion. “From the DRC all the way down through Zambia, Botswana, Mozambique, these are mineral rich countries and it is part of Imerys global strategy to look at developing countries so it makes a lot of sense for us to be here. “There are many opportunities for the future but for now the strategy is one of consolidating the business in South Africa and creating growth opportunities. There are specific projects that we are eyeing in southern Africa however; we need to set our base first,” explains Xolisa.
COMMUNITY INVOLVEMENT All of the companies under the Imerys South Africa brand are heavily involved in community development and upliftment and Xolisa says that the companies work with their communities in a partnership type of relationship which provides more precise benefits. “We don’t just implement projects,” he says “we consult with communities to find out what they want and what they need. For example, we have poultry farming projects, vegetable farming projects, schools where we have built libraries and extended classrooms and entrepreneurs that we have helped to develop. “We had around eight youths who were unemployed and we put them into learnerships where they could learn to construct houses and electrify houses. When they completed the learnerships we helped to the set up their own construction companies and as we speak they are building houses and earning a living from that. The communities do play a key role in the businesses that we have.” Of course, BEE legislation plays a part in ensuring businesses contribute to their communities and Imerys and all of its subsidiaries comply and work towards genuine community development. “In South Africa, one of the key issues around retaining or being offered a mining right by the Department of Resources is requirements set out in BEE legislation. This has a component of community development in it,” says Xolisa. “If you look at the mining charter for example, there are certain areas that you have to comply with in terms of community
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development and your empowerment partner must also play a role in making sure communities benefit. Our communities will be shareholders at BEE level and wherever we operate we often have social labour plans and community projects that we work on.” It is because of initiatives like this that the future looks bright for Imerys and its subsidiaries. With Rhino Minerals successfully overcoming the relocation of the Segorong community, Samrec looking to expand its capacity further and Imerys South Africa looking to draw on the skills of its established companies to expand into Africa, it seems as though this is an organisation that will undoubtedly achieve its goals. “We have always been the leading company that produces andalusite. There is a competitor in South Africa but that is small compared to us. We continue to hold the number one position globally for mining, producing and marketing andalusite,” concludes Xolisa, who is confident that Imerys South Africa and its 700 employees are in the best place possible.
Imerys South Africa/Rhino Minerals/SAMREC
Meet Xolisa Mvinjelwa: “I’ve been with the company for around 14 years, I used to work for Anglo American and from there I went to Anglovaal. “Imerys got me in 1999 when they bought Rhino Minerals. At that time I was assistant marketing manager globally, marketing minerals in Asia and Eastern Europe, mainly andalusite. Since then, I have moved out of sales and through to HR in 2005. I then moved to strategic issues and policy issues and became Company Secretary for Imerys South Africa and became involved with their BEE company, Nghala Mining, where my family trust is a shareholder. “Currently, I am head of strategy and corporate services and am responsible for business development, transformation and all mining rights and related issues.”
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