Afarak sells Zeerust chrome mine for R40m

Specialist alloy producer Afarak Group has announced it will sell its Zeerust chrome mine and processing assets, as well as the Zeerust mining right, to Plantcor Mining and Plant Hire, which is a private company incorporated in South Africa. The Zeerust operation is located 35 km east of the Bushveld Complex, in North West, South Africa. The companies have signed a sale agreement with a total purchase price for the transaction penned at R40-million, or €2-million. Afarak says the deal will positively impact its balance sheet and facilitate working capital. The company continues to own and operate the Vlakpoort and Mecklenburg mines in South Africa, which produce chrome ore for sale to global markets. Afarak's speciality alloys segment also supplies low carbon ferrochrome, extra low carbon ferrochrome and high chrome ferrochrome from mining operations in Turkey and has processing operations in Germany. About 16-million tons of the group's chrome ore reserves are in South Africa, while the Turkish reserves comprise 7.1-million tons.