®

Group snapshot 1

Group structure 2

Journey to the present 3

Group at a glance 4

Geographic footprint 5

Our operations 6

Aggregates 6

Concrete Based Products 8

Industrial Minerals 10

Contracting International 14

Commodities 16

Quality assurance 18

Real transformation for sustainability 20

Our Health and Safety Policy 21

Contents

1

Group snapshot

The group supplies a broad range of materials ranging from aggregates, concrete products

(bricks, blocks and pavers) to readymix as well as industrial minerals and iron ore. In addition,

Afrimat has established a strong foothold in contracting services comprising mobile crushing,

screening, drilling and blasting; and offering flexibility even beyond its fixed areas of operation.

Afrimat’s flexibility extends further – to project scale – with the group servicing major infrastructure

and construction projects for public sector and government owned enterprises through to small

private sector contracts. The diverse client base acts as a risk hedge and exposes Afrimat to the

full range of construction and related spend in its target regions.

Consistently low staff turnover has resulted in a deep skills pool. Real transformation, starting with

staff and management and extending to community upliftment, is integral to the group’s sustainability.

In addition, environmental conservation is an imperative part of Afrimat’s growth strategy.

Afrimat Limited is a leading black empowerment open pit mining company providing construction materials and

industrial minerals. The group’s core subsidiaries have been in operation for more than 45 years and it is listed in the

“Construction and Building Materials” sector of the JSE Main Board.

2

Group structure

Eastern Cape

Free State

Gauteng

KwaZulu-Natal

Limpopo

Mpumalanga

Western Cape

Northern Cape

Mozambique

Aggregates

Free State

KwaZulu-Natal

Western Cape

Gauteng

Mpumalanga

Mozambique

Concrete-Based Products

Southern Africa

Contracting International

Northern Cape

Commodities

Gauteng

Western Cape

Industrial Minerals

3

Journey to the presentB

A

Prima established

‘63

Lancaster Precast established

‘73

Afrimat formed from merger of Lancaster and Prima

Afrimat listed on JSE Main Board in “Construction and Building Materials” sector

‘06

National footprint into Gauteng, Limpopo and Mpumalanga

‘08

Diversification into industrial minerals with acquisition of Glen Douglas dolomite quarry

‘11

Acquisition of 50,7% stake in Infrasors Holdings Limited

‘13

Established Greenfields

Mpumalanga (Dingwell Quarry Rocky’s Drift)

‘15

Lancaster established

‘65

Empowerment transaction between Mega Oils and Prima

‘03

Acquired Malans Group and Denver Quarries

‘07

Establishment of an employee benefit scheme

‘09

Diversification into clinker market with acquisition of SA Block Group

‘12

Acquisition of 100% Bethlehem quarry

Acquisition of 60% of Diro Iron Ore Mine

Introduction of ARC as a strategic shareholder

‘17

Mozambique

‘14

Acquisition of Cape Lime

‘16

4

Group at a glance

Trust

Accountability

Integrity

Teamwork

Respect

Safety

Customer satisfaction

our values

Inspiring growth through the consistent

delivery of solutions that empower our

people and our customers.

our brand promise

Our Vision is built on:

Well-managed operations

Responsible, honest and motivated personnel

Effective and reliable systems

Delighted stakeholders and satisfied customers

Healthy finances

Zero harm to employees, the community and

environment

Innovation and flexibility

our vision

To be the most respected construction materials and industrial minerals supplier in Africa.

5

Geographic footprint

Mpumalanga

Eastern Cape

Western Cape

Northern Cape

Mozambique

Free State

Gauteng

Limpopo

KwaZulu-Natal

6

Our operations

Aggregates

The Aggregates Division produces aggregates of a wide variety of sizes and

technical specifications, primarily with products including stone, gravel and sand

that are used primarily for large-scale civil engineering and infrastructure

projects. Afrimat’s proprietary commercial quarries – located in eight of South

Africa’s provinces and in Mozambique – also supply the majority of raw materials

for our Concrete Products and Readymix divisions.

Commercial Quarries

Sand Mines

Gravel Mines

Afrimat continually ensures that stone reserves are adequate for the long-term needs of the group.

7

Products

Crushed Aggregates

Sand

Laterite

8

Our operations

Concrete Based Products

The Concrete Based Products Division operates primarily in Gauteng,

KwaZulu-Natal, the Free State and Worcester in the Western Cape,

manufacturing concrete blocks and bricks largely for affordable housing.

Precast factories manufacture concrete bricks, building blocks, brick paving,

walling and moulded concrete products of which the majority carry the SABS

seal of approval.

The Division supplies concrete primarily to large-scale civil engineering and

infrastructure projects through fixed and mobile readymix plants where concrete

is batched on demand and then transported to site by concrete mixer trucks.

Concrete building blocks of various sizes

Cement bricks of different shapes, colours and sizes

Cement pavers of different shapes, colours and sizes

A variety of further precast products

Fixed and mobile readymix concrete batching plants

9

While the mobile concrete batching can be set up in any part

of the country, the fixed plants are based in the Western Cape,

KwaZulu-Natal, Free State and Mpumalanga. Close to 90% of

readymix’s raw material needs (excluding cement) are sourced

from the group’s own quarries. All sales personnel are certified

by the Concrete and Cement Institute of South Africa.

Products

Bricks

Readymix concrete

Blocks

Pavers

10

Our operations

Industrial Minerals

The Industrial Minerals Division supplies the steel industry with metallurgical

dolomite; the construction industry with a variety of aggregate products; and the

agricultural industry with agricultural lime through its Glen Douglas, Marble Hall,

Lyttleton, Vredendal and Langvlei mines.

Cape Lime produces quality mineral products supplied to various niche markets

such as manufacturing industries producing chemicals, filler, glass, paint and

food products.

Metallurgical dolomite

Clinker

Limestone

Burnt lime

Agricultural lime products*

Metallurgical quartzite

Alluvial silica

* (B4303 ACT 36 of 1947)

11

In May 2010, Afrimat acquired the Glen Douglas dolomite mine, which produces an

annual output of approximately 1,5 million tonnes of metallurgical dolomite,

commercial mining and aggregates and agricultural lime products. Glen Douglas is

uniquely positioned to supply customers in the southern parts of Johannesburg and

northern Free State, and has a formidable presence in the Vaal area.

High levels of metallurgical dolomite are produced at sustainable levels and supplied

to the steel industry. The mine can facilitate cheaper transport costs for its customers

through a rail siding equipped with a mechanical loading facility.

Glen Douglas produces a wide spectrum of aggregate products through premium

products such as super sand. The largest segment served is the readymix industry.

Other segments served are the concrete products and brick-making industries. The mine

has a strong brand due to its consistent quality and exceptionally low water demand.

LimeCor was established to service the agricultural industry. The company is a

centralised marketing organisation providing expertise to the farming community.

In March 2013, Afrimat acquired a 50,7% stake in resources group Infrasors, which

produces dolomite, limestone and silica. Afrimat has since incrementally increased its

shareholding in Infrasors and currently owns 97,4%.

Infrasors’ mining assets include:

Glen Douglas

LimeCor and Infrasors

Lyttelton Centurion Mine

Opencast mining and

beneficiation of dolomite

Marble Hall Mine

Opencast mining and

beneficiation of

limestone

Delf Sand Mine

Opencast mining and

beneficiation of

alluvial silica sand

and silica quartz

12

Clinker Supplies Proprietary Limited was acquired by Afrimat in March 2012.

Clinker Supplies operates out of three plants:

Clinker Supplies

Klip

The Clinker Supplies’ reclaiming plant at Klip was installed in 1989.

It was subsequently modified and enlarged and now has the capacity

to process and classify 350 tons of clinker per hour, supplying mainly

processed clinker aggregate to the brick manufacturing industry.

Vaal

Structural components of the Vaal clinker reclamation processing

plant have recently been redesigned and enhanced. The Vaal plant

has a processing capacity of 680 tons per hour, nearly double the

Klip output. The plant performs exceptionally well and processes

approximately 6 000 tons per day, supplying processed clinker

aggregate for brick manufacture, road and civil construction purposes.

The clinker plants at both Klip and Vaal consist of two major areas

of operation:

A mobile clinker reclaiming fleet on top of the dump.

A crushing, screening, grading and loading plant at ground level.

Vierfontein

Clinker Supplies’ operations at Vierfontein are limited to a mobile-

plant reclaiming and loading operation, supplying unclassified clinker

to the cement industry.

13

Cape Lime is a full subsidiary of Afrimat Ltd since April 2016. Operating as a business

unit, Cape Lime now have access to numerous support functions within the Afrimat

group. The acquisition augments Afrimat’s industrial mineral product offering and

further expands its footprint across South Africa. The parties to the acquisition

recognised the scale of potential business opportunities that such a relationship

presented, as Afrimat and Cape Lime have different and complementary strengths.

Cape Lime has two plants in Langvlei and Vredendal. Today Langvlei has three

kilns in operation, calcining dolomite. It also boasts the only pressure hydrator in

South Africa.

The Vredendal operation came into existence in 1981, when the dolomitic aggregate

operation was expanded to include the Mineral Filler Plant. A fluid bed calciner was

commissioned in 2004 producing quality white lime.

As an extension of the Cape Lime marketing division, sales agents are located at

various locations throughout South Africa. Sales also extend to clients across South

African borders.

Cape Lime

14

Our operations

Contracting International

Contract crushing servicesAfrimat operates internationally through a mobile hard rock crushing service.

Plants and equipment on offer include:

Tracked mobile crushers;

Modular semi mobile units;

High specification road materials;

Screening;

Primary and secondary reduction for small to mid size mining; and

Load and haul and stockpile services.

Drilling and blasting servicesAfrimat provides a full package of drilling and blasting solutions for the

construction and junior mining industries. This division specialises in optimising

cost and end results.

Mobile crushing and screening

Drilling and blasting

Bid preparation and contractual services

Mobile/on-site readymix batching

Establishment of commercial quarries

15

The drilling and blasting division operates a modern fleet of Atlas

Copco drill rigs and offers a full complement of highly qualified staff.

Bid preparation and contractual servicesThis division is able to devise offers that are professional,

contractually responsible and well-packaged.

ReadymixOur team has the expertise to establish readymix operations.

The division also offers mobile plant production, pumps and

technical services.

Quality assurance

Readymix’s batching system is fully automated and meets the

standards set by SABS 878:2012 in order to deliver the highest

quality products. Tests are done on request by external accredited

service providers.

With a mobile fleet of over 20 crushers, this division ensures flexibility.

Products

All grades of concrete;

Pumped readymix concrete;

Readymix mortars and plasters;

Self-compacting concrete;

Exposed aggregate concrete; and

Pigmented coloured concrete (enquire regarding availability).

Commercial quarriesAfrimat are also experts in the establishment of commercial

quarries, including crushing and screening of all products.

16

Our operations

Commodities

Afrimat’s Commodities Division was established in 2016 with the acquisition of

an Iron Ore mine in the Northern Cape.

The Division focuses on consistently and reliably supplying quality iron ore to

local and international markets.

This is achieved by leveraging the group’s core competencies in uniquely

positioned iron ore mines, in terms of quality, size and location.

The consistent drive towards efficiency and cost effectiveness within its current

operations, positions the group well within the iron ore sector.

  Afrimat Iron Ore (Northern Cape)

17

Iron ore

18

Quality assurance

The Quality-at-Source strategy of the Aggregates Division is founded on quality assurance being the responsibility of each successive link in the production process.

In-process quality control is ensured by constant

monitoring and evaluation – a computerised

maintenance strategy is employed to ensure

absolute reliability and minimum downtime.

A zero-tolerance approach is adopted towards

defects or deviations from quality standards

and specifications.

19

Readymix’s batching system meets the standards set by the South African

Readymix Association (“SARMA”) in order to deliver the highest quality products.

For each project, care is taken to ensure that the customer’s requirements are

met in terms of the specific mix designs, quality assurance and control.

Readymix is supplied out of 22 plants, all of which are fully certified by SARMA

for quality, safety and the environment.

20

Real transformation for sustainability

Social Responsibility

Afrimat prioritises ongoing training in order to raise standards of performance and productivity, offering internal courses and using

external suppliers to facilitate continuous development of its skills base.

A focused training division is dedicated to providing all employees with the opportunity of expanding their skills and qualifications.

In line with succession planning, candidates have been identified and are receiving personal mentorship in furthering their formal

education and operational knowledge. Focus is on the areas of mechanical and civil engineering as well as management,

where previously disadvantaged candidates have been appointed as Trainee/Assistant Managers as part of two-three year

development programmes.

Skills Upliftment

Afrimat adopts a broad-based approach to social responsibility and is committed to expenditure in terms of the social and labour

plans required by the Department of Mineral Resources. The group accordingly undertakes related social development

responsibilities with each mining licence. These include the establishment of community centres, school facilities, vegetable

gardens, salaries for math teachers and infrastructure including roads and drainage. The group targets 1% of profit after tax for

social responsibility projects by each subsidiary. An annual progress report in this regard is submitted to the Department of

Mineral Resources.

Community Upliftment

Afrimat’s commitment to real and tangible transformation is evident in its progressive strides made in BEE. In 2016, Afrimat

escalated direct black ownership in the group to 30,25%, putting the group ahead of Mining Charter requirements for 2014.

The group’s main BEE partners are now African Rainbow Capital, Afrimat BEE Trust, Mega Oils Proprietary Limited and Joe Kalo

Investments Proprietary Limited.

BEE

21

Our Health and Safety Policy

Afrimat prioritises health and safety as the key to successful and sustainable operations. Management is primarily

responsible for implementing Afrimat’s extensive Health and Safety Policy. The implementation is closely monitored

and all incidents are tracked on a monthly basis. This underpins the ongoing process of identifying new risks and

developing procedures to mitigate these. Management and the group SHE departments conduct regular

inspections to identify areas of further improvement while third party audits are conducted by ASPASA and

SARMA. Hazard Identification Risk Analysis (“HIRA”) are implemented for each work process at all operations.

A dedicated Safety Committee is committed to researching new technological advances in order to enhance

and maintain a superior safety standard throughout the group’s operations.

All new employees attend health and safety induction programmes, while existing employees receive

ongoing training to ensure awareness and strict adherence to the Health and Safety Policy.

Further, the group’s concern about the HIV/AIDS pandemic threatening South Africa has led to an active

HIV/AIDS awareness drive.

Our Environmental Management ProgrammesThe group manages its environmental footprint through formal Environmental Management

Programmes (“EMPs”) in line with local and international regulations and best practice. The EMPs

focus on responsible mining, reducing emissions through upgrades to diesel-driven equipment,

decreasing noise pollution, recycling products where viable, and maintaining all plants at optimum

working levels and efficiency. Active programmes to reduce the group’s carbon footprint have

also recently been introduced.

With Afrimat committed to continually upgrading and improving its EMPs, it has today become

well-renowned and respected in the industry in this regard. Further, third party audits by

ASPASA, SARMA and external consultants support our environmental conservation and

protection efforts and provide added opportunity for refinement of its EMPs.

Environmental progress reports are submitted annually to the Department of Mineral

Resources in terms of mining rights requirements. In addition, mine rehabilitation

assessments are conducted by external consultants and provisions are raised to meet

these future obligations.

AddressTyger Valley Office Park No. 2, Cnr. Willie van Schoor and Old Oak Rd, Tyger Valley(PO Box 5278, Tyger Valley, 7536)

Telephone+27 21 917 8840

Facsimile+27 21 914 1174

E-Mailinfo@afrimat.co.za

Websitewww.afrimat.co.za