Masingita Group of Companies, a black-owned property developer, has embarked on a strategic business diversification drive which will see its interests extended to the mining industry.
Mike Nkuna, a well-known businessman and founder of Masingita Group of Companies, said this strategic business diversification drive is part of the company’s goal to seek new revenue streams away from the property sector which it has traditionally been associated with.
He added that the strategic business diversification drive to the mining industry is being implemented by the company’s subsidiary, Mangalani Mining and for commodity trading through Mangalani Trading.
The Mangalani Mining has already concluded a business transaction with a clay mining company in Steelpoort which produces both attapulgite and bentonite in a raw, sun-dried, granular and powder form and has an offtake agreement with a Chrome Smelter in Steelpoort.
Mangalani Trading has concluded a joint venture agreement with HMS Bergbau Africa on commodity trading. HMS Bergbau Africa is a subsidiary of HMS Bergbau AG which is a German company engaged in trading of steam coal, coking coal, anthracite coal, iron lumps, iron fines and a range of other ores.
“Over the past several years we have considered multiple options of how to best leverage our capital to grow the business and increase shareholder value. This strategic business diversification drive into mining sector provides an ideal opportunity for us to inject new growth into the business.
However, we will continue to invest in property development, which is core to our business and provides consistent revenue streams.” said Mike Nkuna
Mangalani Mining will be headed by Vipul Gandhi, former Executive and General Manager at Jindal Africa.
“We believe that Vipul has the requisite expertise to help us in our journey to become a recognized player in the mining sector and contribute towards radical socio-economic transformation in a sector which provides opportunities for black players. Vipul’s valuable expertise will be very strategic in our long term goal to increase the number of recognized black mining firms which own assets across the country and thereby contribute positively to the growth of the South African economy,” says Mike Nkuna.
Vipul concurs: “With a strong established brand in the property sector, Masingita will create an equally strong brand in the mining sector by tapping the immense natural resources available in South Africa.