JOHANNESBURG (miningweekly.com) – The Competition Commission on Monday approved JSE-listed Afrimat’s intention to acquire Diro Iron Ore and Diro Manganese.
The construction company is marking its entry into the manganese and iron-ore mining sector through the R276-million majority stake in Diro’s distressed assets.
Afrimat is acquiring 60% of Northern Cape-based Diro Manganese and Diro Iron Ore, the operations of which had been halted under financial distress and subsequent business rescue procedures initiated in June.
Diro had accumulated some R483-million in debt, but had a proven iron-ore reserve of 5.6-million tonnes, along with 1.3-million tonnes of sellable fine ore stockpiles.
The commission found that the proposed transaction is unlikely to substantially prevent or lessen competition in any market in South Africa. In addition, the commission found that the proposed transaction is unlikely to raise any other public interest concerns.