In a strategic move aimed at strengthening its financial position and streamlining operations, Afarak Group, an international specialist alloy producer, has announced the sale of its Zeerust chrome mine and associated processing assets in South Africa to Plantcor Mining and Plant Hire, a privately-owned local company.
The transaction, officially confirmed through a signed sale agreement, is valued at R40 million (approximately €2 million). The deal includes the Zeerust chrome processing facilities and the Zeerust mining right, handing over full control of the North West-based chrome operation to Plantcor.
This development represents a notable shift in Afarak’s Southern African operations, aligning with the company’s broader plan to optimise asset performance, improve working capital, and consolidate focus on high-performing mining operations.
About the Zeerust Chrome Mine
Located approximately 35 kilometres east of the Bushveld Complex in the North West province, the Zeerust chrome mine has long been considered a valuable asset due to its proximity to one of the richest mineral-bearing regions in the world. The Bushveld Igneous Complex is renowned for its vast reserves of platinum group metals (PGMs) and chromite, placing Zeerust in a geologically favourable location.
The mine, once fully operational under Afarak, included extraction and processing infrastructure and supplied chrome ore for various local and export markets. However, in recent years, the mine’s contribution to the company’s overall profitability has declined relative to other assets.
Afarak stated that the decision to divest from Zeerust would allow the company to focus on higher-yield, more strategic operations, while the incoming owner, Plantcor, will now have the opportunity to revitalise and develop the Zeerust asset under its ownership.
Strengthening Afarak’s Balance Sheet
In a formal statement, Afarak Group explained that the R40-million transaction will have a positive impact on its balance sheet by boosting liquidity and freeing up working capital.
“The sale forms part of our ongoing strategy to optimise our global operations and ensure a robust capital structure. Proceeds from this transaction will be channelled into enhancing operational performance and supporting key growth assets,” the company said.
Afarak continues to own and operate two other chrome mines in South Africa: the Vlakpoort and Mecklenburg mines. Both mines produce chrome ore for sale to global markets, contributing to the group’s international position as a supplier of specialist alloy products.
Afarak’s Global Footprint
Though headquartered in Europe, Afarak’s operational footprint spans several continents. In South Africa, the company’s chrome mining assets supply feedstock to its specialty alloys division, while in Turkey, the company also operates mining activities contributing to chrome ore production.
The company processes low carbon ferrochrome (LC FeCr), extra low carbon ferrochrome (ELC FeCr), and high chrome ferrochrome—essential materials in the manufacturing of stainless steel, aerospace components, and other industrial applications.
Afarak’s processing facilities in Germany handle a significant portion of its ferroalloy production, enabling the group to maintain control over quality and supply in European markets.
Resource Reserves and Long-Term Strategy
According to company figures, Afarak’s chrome ore reserves total approximately 16 million tonnes in South Africa, with an additional 7.1 million tonnes located in Turkey. This gives the group a strong reserve base to support long-term production, despite the sale of Zeerust.
Industry analysts note that while the Zeerust mine was not a core revenue generator in recent years, it offered future potential for growth. Its sale marks a tactical reallocation of resources to areas with better immediate returns and lower operational risk.
“This transaction reflects Afarak’s practical approach to asset management. By exiting non-core or underperforming operations, the company is preserving capital and positioning itself for more focused expansion in high-margin markets,” said an analyst familiar with Southern African mining operations.
Plantcor’s New Role and Industry Outlook
For Plantcor Mining and Plant Hire, the acquisition represents an important opportunity to expand its footprint in the South African chrome mining sector. With increasing demand for chrome and ferrochrome driven by the stainless steel industry, this acquisition may signal Plantcor’s ambitions to become a more prominent player in mineral extraction and beneficiation.
The chrome industry globally has faced volatility due to fluctuating steel demand, power supply challenges, and rising operational costs. However, chrome remains an essential input in stainless steel production, and with global infrastructure and manufacturing activities recovering post-pandemic, the medium-term outlook for chrome is cautiously optimistic.
Strategic Implications for South Africa’s Mining Sector
The sale also highlights the ongoing reshaping of South Africa’s mining landscape, as foreign firms reconsider their presence and investments in the country, often handing over operations to locally owned or private enterprises. This transition can stimulate local ownership, promote job retention, and allow for greater flexibility in operational decision-making.
As environmental, social, and governance (ESG) expectations rise globally, companies like Afarak are under pressure to rationalise their operations to meet evolving compliance, profitability, and sustainability targets. The decision to divest from Zeerust can be seen in this broader context of responsible corporate restructuring.
Looking Ahead
While the Zeerust chapter may be closing for Afarak, the company remains active and well-positioned in the global chrome and ferroalloy market. Its decision to sell the asset reflects both economic pragmatism and strategic refocusing — hallmarks of a company intent on sustainable growth.
As for Plantcor, the spotlight now shifts to how it will develop the Zeerust mine, harness its untapped potential, and contribute to regional economic development through job creation, mining production, and downstream beneficiation.
Conclusion
The R40-million sale of the Zeerust chrome mine marks a significant moment for both Afarak and Plantcor. For Afarak, it offers a chance to streamline operations and focus on high-performance assets across South Africa, Turkey, and Europe. For Plantcor, it opens the door to new opportunities in chrome extraction and processing within South Africa’s richly endowed mineral sector.
With the global appetite for chrome showing steady recovery, and Africa’s mineral wealth drawing renewed interest, Zeerust’s new ownership may yet unlock the next chapter in its production story.
