African Rainbow Minerals

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African Rainbow Minerals (ARM)
Public (JSE: ARI)
JSE Limited
Industry Mining
Headquarters Sandton, Johannesburg, South Africa
Number of locations
South Africa, DRC, Zambia
Key people

Patrice Motsepe (Chairman)
Mike Schmidt (CEO)
Mike Arnold (CFO)

Thando Mkatshana (CE)
Products PGMs, Ferrous Metals, Coal, Copper
Revenue Decrease R9.6 Billion (FY 2016)[1]:223
Decrease R1.09 Billion (FY 2016) [1]:223
Decrease R(757 Million) (FY 2016)[1]:223
Total assets R35.13 Billion (FY 2016)[1]:222
Total equity R24.58 Billion (FY 2016)[1]:222
Number of employees
13 793[1]:43
Website www.arm.co.za
Manganite crystals from N'Chwaning

African Rainbow Minerals (ARM) is a mining company based in South Africa. Patrice Motsepe is the executive chairman; Mike Schmidt is CEO.[2]

ARM has interests in a wide range of mines, including platinum and platinum group metals (PGMs), iron, coal, copper, and gold.[3] ARM's Goedgevonden coalmine near Witbank is a flagship of their joint venture with Xstrata, and produces 6.7 million tons of coal per year.[4] Production is expanding at the Two Rivers platinum mine in Mpumalanga.[5] ARM owns 20% of Harmony Gold, the 12th largest gold mining company in the world with three mining operations in South Africa.[6]

Expansion outside South Africa[edit]

In August 2010, ARM entered a $380 million joint venture with Vale to build a copper mine in Zambia, which is expected to produce 100,000 tons of copper.[7][8] In 2009, ARM was reported to be planning $1.12 billion investments in mining in Zimbabwe.[9][10] ARM also has a 50% stake in Morobe Mining Joint Ventures (MMJV) of Papua New Guinea. MMJV has operations in Hidden Valley and Wafi-Golpu in Morobe Province approximately 50 kilometers south-west of Lae, Papua New Guinea.

History[edit]

ARM was founded by Patrice Motsepe[11] as South Africa's first black-owned mining company, although he is thought to have benefited from political connections when the ANC took power and enacted laws on black ownership of industries.[12] The South African government continues to exert pressure to increase black ownership of mining companies.[13]

Motsepe founded ARMGold in 1997, which went on to list on the Johannesburg Stock Exchange (JSE) in 2002. In 2003 ARMGold merged with Harmony Gold Mining to form the world’s 5th largest gold producer.[14] ARMGold went on to merge with Anglovaal Mining (Avmin).

In 2003 it entered a merger with Harmony Gold Mining and Anglovall, previously owned by Richard and Brian Menell, and became the largest group controlled by black entrepreneurs.[15]

In 2009, ARM joined the International Council on Mining and Metals.[16]

In February 2016, ARM put a further $148 million bail out in place to preserve their broad-based black economic empowerment (B-BBEE) status.[17] In March 2016, ARM reported that profits had been halved due to lower commodity prices.[18]

External links[edit]

References[edit]

  1. ^ a b c d e f "African Rainbow Minerals Integrated Annual Report 2016" (PDF). African Rainbow Minerals (published 30 June 2016). 10 March 2017. 
  2. ^ Editorial, Reuters. "${Instrument_CompanyName} ${Instrument_Ric} People | Reuters.com". Reuters. Retrieved 2017-01-08. 
  3. ^ "Corporate Summary" (PDF). 2009-10-23. Retrieved 2010-09-13. 
  4. ^ "Goedgevonden mine to supply Eskom's Majuba coal-fired plant". Gold Newswire. Retrieved 2010-09-13. 
  5. ^ "Two Rivers plant improvement on track". Mining Weekly. Retrieved 2010-09-13. 
  6. ^ ARM company website, retrieved 3 February 2011
  7. ^ "allAfrica.com: South Africa: Arm in Copper Joint Venture in Zambia". 2010-09-13. Archived from the original on 1 September 2010. Retrieved 2010-09-13. 
  8. ^ "African Rainbow and Vale start construction on $380m Zambia mine". Retrieved 2010-09-13. 
  9. ^ "African Rainbow Minerals, Allocate R8 Billion Mining Investment In Zimbabwe - Mineral Exploration - Mining Exploration News". Archived from the original on 2010-06-17. Retrieved 2010-09-13. 
  10. ^ "ARM to invest ZAR 8 billion in Zimbabwe". Archived from the original on 2011-07-11. Retrieved 2010-09-13. 
  11. ^ "African Rainbow Minerals - The African Business Journal". Archived from the original on 14 September 2010. Retrieved 2010-09-13. 
  12. ^ Adams, Susan (2008-03-24). "The Prince of Mines - Forbes.com". Archived from the original on 31 August 2010. Retrieved 2010-09-13. 
  13. ^ "SA pushes mining firms for greater black ownership - Yahoo! News". Archived from the original on 18 September 2010. Retrieved 2010-09-13. 
  14. ^ Creamer, Terence. "Harmony-ARMGold to merge to form world's fifth biggest gold producer". Mining Weekly. Retrieved 2017-01-08. 
  15. ^ H de Beer, Johan (1 January 2016). The History of Geophysics in Southern Africa. African Sun Media. pp. 459–460. 
  16. ^ "African Rainbow Minerals joins the International Council on Mining and Metals". ICMM. Retrieved 2010-09-13. 
  17. ^ "Business Day". www.bdlive.co.za. Retrieved 2017-01-08. 
  18. ^ "African Rainbow Minerals to cut jobs as profits halve". Fin24. Retrieved 2017-01-08.