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Company profile
Interview with André Wilkens
Chief Executive Officer, African Rainbow Minerals Ltd
Description
André Wilkens was formerly the chief executive of ARM Platinum, a division of ARM. Prior to this, he was chief operating officer of Harmony following the merger of that company with ARMgold in 2003. He served as chief executive officer of ARMgold after joining the company in 1998. The balance of his 34 years? mining experience was gained with Anglo American Corporation of South Africa, where he commenced his career in 1969 and culminated in his appointment as mine manager of Vaal Reefs South Mine in 1993. He has a Mine Managers Certificate of Competency, MDPA (Unisa), RMIIA and was appointed to the board in 2004.
Please give a brief history of African Rainbow Minerals (ARM) and where do you operate?
African Rainbow Minerals Limited, ARM, is a leading, niche diversified mining and minerals company, based in Johannesburg, with excellent long-life low-cost assets in key commodities. ARM in its current form was formed in May 2004, to explore, develop, operate and hold significant interests in the South African and southern African mining industry.
The company?s ferrous division, through its 50% holding in Assmang Limited, supplies raw material to the world?s steel mills and alloy plants. ARM Ferrous has three operating divisions based on its three commodities, chrome ore, manganese ore and iron ore. ARM Ferrous produces, for local and international markets, manganese ore and iron ore from its mines in the Northern Cape and chrome ore from its mine at Dwarsrivier, Mpumalanga. The company also produces charge chrome and low-carbon ferro-chrome from its smelter in Machadodorp, Mpumalanga, and ferromanganese from its smelter at Cato Ridge in KwaZulu-Natal.
Our manganese division consists of the manganese mines in the Northern Cape, Nchwaning and Gloria, and the ferro-manganese works at Cato Ridge in KwaZulu-Natal. The chrome division consists of the Dwarsrivier chrome mine and the Machadodorp ferro-chrome works, both in Mpumalanga. The iron ore division is made up of the Beeshoek and Khumani iron ore mines near Postmasburg in the Northern Cape.
The ARM Platinum Division participates in the management of two operating mines, Modikwa Platinum Mine ? a 50/50 joint venture with Anglo Platinum ? and Nkomati Nickel Mine ? a 50/50 joint venture with Norilsk Nickel. We also manage theTwo Rivers Platinum Mine in which ARM holds 55% and Impala Platinum 45%. Our additional projects, the Nkomati Nickel Expansion Project and the Kalplats PGM Exploration Project add to this division?s exciting growth prospects.
ARM Coal, the company?s new division, was created in July 2006 following a transaction with Xstrata plc valued at some R2.4-billion. ARM Coal is 51% held by ARM and 49% by global diversified mining group Xstrata. On 1 September 2006 ARM acquired an additional 10% stake in Xstrata South Africa?s existing coal operations, giving ARM an effective 20.2% holding in these assets.
Please elaborate on ARM?s main areas of interest.
The company has interests in ferrous metals through its holding in Assmang Limited; platinum group metals (PGMs) and nickel held through a range of joint ventures and partnerships; coal, through its interest in Xstrata Coal South Africa (XCSA) and the Goedgevonden Coal Project; exploration in copper, cobalt and other base metals outside of South Africa through TEAL Exploration & Mining Incorporated (TEAL) and gold, through its interest in Harmony Gold Mining Company Limited (Harmony).
How do you ensure that ARM is at the forefront of technological development?
On all fronts we intend remaining entrepreneurial and fleet-footed to take advantage of new opportunities. We believe that our suite of metals and minerals is geared towards commodities with strong long-term market fundamentals in all of our market segments.
The implementation of our diversification strategy, cost control and operational efficiencies and our focus on key commodities is expected to provide ARM with consistent and sustainable growth in profits.
How does ARM contribute to transformation in the industry, and to the economy of Mpumalanga?
ARM?s ?We do it better? management style is supported by experience and a focus on entrepreneurship, which adds significant value to its business. An integral part of ARM?s business is the forging of partnerships with key players in the commodity sectors to ensure that ARM is at the forefront of technological development and global practices and has access to key markets and to value generating growth opportunities.
What have been some of ARM?s major recent highlights?
For the six months ending December 2007, the company announced a 35% increase in headline earnings to R741-million. Operationally, record volumes were achieved in manganese ore, iron ore, thermal coal and chrome ore, while the Platinum Division achieved a 9% increase in PGM sales. All projects are progressing on schedule and within budget.
? Khumani Iron Ore Mine (10-million tonnes per annum);
? Nkomati Nickel Expansion (20 500 tonnes per annum);
? Goedgevonden Coal Project (6.7-million tonnes per annum)
The company is also proud to announce that Modikwa Platinum Mine achieved a safety record of two-million fatality-free shifts, whilst the Santa Barbara Trophy was presented to Assmang Chrome?s Machadodorp Works for achieving one-million fatality-free shifts.
How is ARM meeting its social development obligations?
Corporate Social Investment is an important component of ARM?s sustainable development programme and is guided by the company?s desire to be a responsibe corporate citizen and valued partner in the communities in which we operate. ARM encourages its employees to participate directly in CSI projects so as to create greater unity between the company and local community members.
Local Economic Development projects form an important part of the various operation?s SLPs. All operations have engaged with local governments and communities in order to establish their needs and developmental requirements, and projects are integrated within the Integrated Development Plans (IDPs) of the various district and local municipalities. Projects under discussion include olive plantations, household chemicals, brick making, coffin making and funeral services, tourism, archaeological and cultural preservation projects, vegetable gardens and intensive crop tunnels, a bakery project and spatial development. In total, ARM?s managed operations will spend R27-million on LED projects over the next five years.
