ARM Ferrous

ARM’s ferrous metals interests are held through wholly-owned ARM Ferrous which, in turn, has a 50% holding in Assmang Limited, a long-established miner and processor of metals for the world's steel industries. The remaining 50% of Assmang is owned by metals trading group Assore Limited which handles the operational and marketing sides of Assmang.

Assmang’s operating divisions are based on its three principal commodities:

• The Iron Ore Division, comprising the Beeshoek Iron Ore Mine and the Khumani Iron Ore Mine in the Northern Cape Province;
• The Manganese Division, comprising the Nchwaning and Gloria Manganese Mines, also in the Northern Cape Province, and the Cato Ridge Ferromanganese Works in KwaZulu-Natal Province. In addition, this division holds a 50 percent interest in Cato Ridge Alloys (Pty) Ltd, a joint venture between Assmang, Mizushima Ferroalloys Company Limited and Sumitomo Corporation;
• The Chrome Division, comprising the Dwarsrivier Chrome Mine and the Machadodorp Ferrochrome Works, both in Mpumalanga Province.

Divisional structure

Operational overview – attributable to ARM

					Operational target F2010
Operations		F2009	F2008	% change
Manganese Ore	000t	1 076	1 856	(42)
Nchwaning*	000t	794	1 641	(52)
Gloria*	000t	282	215	32
Ferromanganese*	000t	59	124	(52)
Iron ore	000t	3 704	3 291	12
Khumani	000t	2 908	557	422
Beeshoek	000t	796	2 734	(71)
Chrome	000t
Dwarsrivier chrome ore*	000t	128	152	(16)
Machadodorp charge chrome	000t	72	138	(48)
ARM Ferrous operating margin	%	63	55
ARM Ferrous cash operating margin	%	68	61
Headline earnings attributable to ARM	R million	3 150	2 775	14

* excludes intra-company sales