Midtier mining and materials company Afrimat reports that steady progress is being made with the integration of the Lafarge business, which it acquired earlier this year, and that the suspension of loadshedding and the establishment of a Government of National Unity (GNU) have had a positive effect on the company and its customers.

In a pre-close business update to shareholders on the company's performance for the six months to end on August 31, published on August 6, Afrimat states that it hopes that the political parties that form part of the GNU will collaborate and focus on critical projects, initiatives and maintenance to ensure infrastructure is maintained and economic growth is achieved.

The company says the build-up to the first half of its 2025 financial year is best characterised by two distinct quarters. In the first quarter, from March to May, the bulk commodity market was lacklustre.

The continued underperformance of the iron-ore export corridor, together with the challenges faced by ArcelorMittal South Africa (AMSA) – the declaration of a force majeure at the Vanderbijlpark facilities, impacted on Afrimat's first-quarter volumes.

The company's domestic iron-ore volumes decreased by 70% in the first quarter as a result of the lower volumes taken by AMSA.

Volumes, however, started increasing in the second quarter, from June to the first week of August, as domestic customers with furnaces started up again, and tender activity increased in road, rail and small infrastructure projects.

Afrimat expects volumes to AMSA to return to normal ranges for the remainder of Afrimat's financial year to February 28, 2025.

Further, the company says it remains encouraged by Transnet's new management team's cooperation. "However, the limited availability of locomotives, derailments and maintenance downtime at Transnet continue to constrain the performance of export iron-ore," it adds.

Nevertheless Afrimat is expecting to dispatch at least three shipments of export anthracite in addition to normal local sales in the second half of the current financial year.

The production rates at the Nkomati anthracite mine's openpits have been ramped up.

Meanwhile, at the Glenover project, in Limpopo, Afrimat has commissioned a single super phosphate plant. Volumes are ramping up and remain on track to reach 30 000 t by 2025.

In terms of construction materials, the loss-making cement component in the Lafarge business has been reduced but remains loss-making.

"At the time of the acquisition, the cement kilns were extremely unreliable and a highly experienced team is working on their turnaround. Although an improvement is already visible, this business component is expected to remain loss-making by the end of August. Innovative strategic initiatives are expected to turn this business unit into a good contributor in future," the company says.