Mantengu Mining has further strengthened its South African portfolio after it announced yesterday the acquisition of Mpumalanga-based Sublime Technologies from US-incorporated Sintex Minerals and Services Incorporated for $100 000 (R1.8 million).
Recently, Mantengu Mining has acquired the Blue Ridge platinum group metals (PGM) mine, which has been under care and maintenance since 2011, from Sibanye-Stillwater. In May this year, Mantengu finalised the acquisition of Birca Copper and Metals (BCM) for R29.9m.
On Monday, the board of directors of Mantengu informed shareholders of the company’s acquisition of the entire issued share capital of Sublime Technologies from Sintex Minerals and Services Incorporated.
“The purchase price for the sale shares is the rand equivalent of $100 000. Total assets acquired are R240m (and) total liabilities assumed are R35m,” said Mantengu Mining yesterday.
It added that the audited net asset value of Sublime as of 31 December 2023 was R247m while its audited profit after taxation for the same period amounted to R12m.
Sublime is located in Mpumalanga in South Africa and it manufactures and distributes silicon carbide which is a hard chemical compound containing silicon and carbon, produced in both powder and crystal forms.
Mantengu added that Sublime was the only producer of SiC in Africa, currently accounting for approximately 2% of the global market share.
“SiC’s primary application is as an abrasive due to its exceptional hardness, second only to diamond. SiC is a ceramic material with excellent thermomechanical properties, including high thermal conductivity,” explained Mantengu.
Sublime’s SiC is used in abrasive markets as a critical raw material in bonded, coated, and granular abrasive products.
For this market, SiC is essential in applications such as wire sawing, grinding wheels, sandpaper, abrasive blasting, and etching.
The material is also used in the refractory market due to its high-temperature resistance and abrasive durability. SiC is thus used to manufacture refractories for furnaces and other components exposed to high heat.
“The ceramics industry is among the largest consumers of SiC in producing high-performance materials,” explained the company.
Additionally, SiC is also sought after within the metallurgical market where it is “utilised for the deoxidation and recarburation of cast iron and steel, playing a pivotal role in foundry” operations.
It is widely used in the electric furnace production of grey, ductile, and malleable cast iron, improving the quality and efficacy of the casting process.
The acquisition of Sublime cemented Mantengu’s rapid expansion of its South African portfolio. The Blue Ridge mine it acquired from Sibanye-Stillwater has an integrated ore processing plant and will resume operations under Mantengu Mining on approval of all conditions precedent to the transaction.
“The acquisition of Blue Ridge is in line with its investment strategy of unlocking intrinsic economic value trapped in the small to large mining sector,” said Mantengu Mining’s CEO, Michael Miller.
Recently, Mantengu disclosed that its Meerust Chrome subsidiary had entered into a lease agreement to operate from the Goudini mine for nearly 10 years. Meerust Chrome was already actively hiring employees “to ensure that the job creation” is maintained, said Mantengu.
“Operations have recommenced, with first deliveries of chrome concentrate having already started,” the company said.
Mantengu has also recently made board changes, appointing Jonas Tshikundamalema as chairman, Alistair Collins as chief legal officer and Warren Geyer as non-executive director.
Listed on the JSE AltX, Mantengu Mining is a mining sector investment company.
BUSINESS REPORT