African Rainbow Minerals

Mark L. Child
Mark Child
March 22, 2017
Kelvin Dushnisky
Kelvin Dushnisky
March 21, 2017

African Rainbow Minerals

African_Rainbow_Minerals - Mining in Africa
  • Year Founded: 1997
  • Key Founding Individuals: Patrice Motsepe
  • Key People: Chairman - Patrice Motsepe, CEO - Mike Schmidt, CFO - Mike Arnold, CE - Thando Mkatshana
  • Mined Resources: Platinum, PGMs, iron, iron ore, manganese ore, chrome ore, copper, coal, nickel, copper and gold
  • Operational Regions: South Africa, Zambia, Zimbabwe, Papua New Guinea

African Rainbow Minerals (ARM) is a top South African mining and minerals company. ARM is involved with mining manganese ore, iron ore, chrome ore, PGMs, coal, nickel and copper, and with producing chrome and manganese alloys. The company also has shares in Harmony mines through which it has gold investments.

History

Started by South African entrepreneur Patrice Motsepe in 1997, ARMGold was the first mining company in South Africa owned by a black person. In 2002 Motsepe listed the company on the Johannesburg Stock Exchange (JSE). The following year he formed a merger with Harmony Gold and the company became the fifth biggest gold producer in the world. Soon after ARMGold also merged with Anglovaal Mining and became known as the largest company in South Africa that is run by black business owners. ARM joined the International Council on Mining and Metals in 2009. In 2016 the company further preserved their status as a black economic empowerment company by putting an additional bail of US$148 million in place.

Mission and Vision

The ARM strategy involves focusing on quality growth through strategic leadership by the ARM board. By implementing strategic business plans and approving capital funding the company’s existing portfolio of acquisitions and partnerships is organically grown. By upholding a managerial style of continuous improvement, the company’s day-to-day actions are ensuring sustainable operational efficiency. With a goal of performing below the 50th percentile of the global cost curve, ARM actively keeps costs down. Company operations are supported by a range of predefined values that include: • Making provision for a healthy and safe environment for all ARM employees • Keeping all forms of discrimination away from the workplace • Always aspiring to operational excellence • Implementing practices that improve the lives of local communities in which the company operates • Keeping corporate governance to the highest levels possible • Working with all stakeholders in a responsible manner in terms of social, environmental and economic aspects of the business

Corporate Responsibility

According to ARM, social responsibility and sustainable development go hand in hand with developing a sound business strategy. The ARM sustainable development model was created as part of the ARM strategy and with the aim of helping the company integrate sustainability into the business. It is a reflection of how social considerations are interdependent on economic and environmental considerations in the generation of economic value to stakeholders, while providing broad social benefits to all parties involved. The company operates within a framework of risk management balanced by corporate governance. Managerial integrity makes consistent monitoring and reporting of data pertinent to sustainable development possible while supporting continual improvement. Only through accurately identifying areas of improvement can sustainable development models evolve as part of operational processes.