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.

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

		F2011	F2010	% change	Operational target F2012
Manganese ore	000t	1 441	1 548	(7)	↑
· Nchwaning*	000t	1 057	1 172	(10)	→
· Gloria*	000t	384	376	–	↑
Ferromanganese	000t	109	119	(8)	↑
Iron ore		5 003	4 900	2	↑
· Khumani	000t	4 659	4 466	4	↑
· Beeshoek	000t	344	434	(21)	↑
Chrome
· Dwarsrivier chrome ore*	000t	186	136	37	↑
· Machadodorp charge chrome	000t	119	94	27	↓
ARM Ferrous operating margin	%	44	31	42
ARM Ferrous cash operating margin	%	49	38	29
Headline earnings attributable to ARM	R million	2 897	1 364	112

* Excludes intra-company sales.