Afrimat Limited, a leading, black-empowered open-pit mining and materials company, has completed the sale of selected aggregates quarries and ready-mix concrete plants to Saturc Proprietary Limited in a transaction valued at R215 million ($13 million), marking a key step in the company’s balance-sheet optimization strategy.

The disposal was undertaken as part of conditions imposed by the Competition Tribunal of South Africa following Afrimat’s acquisition of Lafarge South Africa Holdings, one of the country’s largest construction materials businesses.

Afrimat confirmed that all regulatory and commercial conditions tied to the transaction have been fulfilled, including the Competition Tribunal’s approval of Saturc as the designated buyer under the Lafarge merger agreement.

Structured payment agreement

Under the terms of the deal, Afrimat will receive R160 million ($9.6 million) in cash at closing. The remaining R55 million ($3.3 million) will be paid over a three-year period, subject to agreed operational and financial performance targets.

The transaction enables the company to unlock capital while maintaining focus on higher-growth mining and industrial assets.

Chairperson Franscois Louw said the company aims to reduce its debt-to-equity ratio from 50.2% recorded at the previous financial year-end to approximately 25% within the next two years.

According to Louw, the strategy is designed to strengthen financial flexibility and position Afrimat to pursue future commodity opportunities as they emerge across the region.

Building a diversified mining portfolio

Afrimat’s acquisition of Lafarge South Africa for R1.05 billion ($63.3 million) received conditional approval from the Competition Tribunal in April 2024, paving the way for the latest divestments.

Originally established as a construction materials supplier, Afrimat has evolved into a diversified mid-tier mining company listed on the Johannesburg Stock Exchange in 2006. Its operations span aggregates, industrial minerals, iron ore, anthracite, and agricultural phosphates throughout Southern Africa.

Headquartered in Bellville in the Western Cape, the company also provides contract mining services, delivering integrated pit-to-port solutions for mining, quarrying, and construction customers.

The company delivered stronger 2026 FY results, with net profit rising to R157.07-million ($9.5 million) from R113.51-million ($6.8 million). Headline earnings climbed to R145.72-million ($8.9 million), while revenue jumped 20.3% year-on-year to R10-billion ($605 million).

Operating profit advanced 9.6% to R523.7-million ($31.6 million), underscoring robust earnings growth, margin resilience, and steady financial performance amid improving operational momentum.

With the asset sale now completed, Afrimat is sharpening its focus on capital discipline, debt reduction, and long-term growth. The transaction strengthens the group’s financial position while creating additional capacity to pursue strategic mining investments across Southern Africa’s expanding resources sector.