Job cuts and operations on ice at company backed by billionaire Patrice Motsepe
Kropz Plc, the phosphate producer backed by billionaire Patrice Motsepe, said it will cut its own staff as it won’t renew its operating and maintenance agreement with contractors at its South African operation when it expires in November.
The company, which mines for the fertiliser ingredient at the Elandsfontein mine about 110km northwest of Cape Town, said the operation has about 540 workers, including contractors.
It will now focus on the production of nanophos, a soft rock that releases phosphate more gradually, for the South African market, and on selling down its stocks of phosphate rock.
“Kropz will continue maintaining the majority of the unused plant in a care and maintenance state that will ensure a quick return to phosrock production when market conditions become more favourable,” Chief Operating Officer Mark Maynard said in a reply to queries.
The company said on 7 September that it would restructure its operations following $160 million (R2.6 billion) in investment, as the war in the Middle East exacerbated already poor market conditions.
Separately, contractor Trollope Mining Group told employees that its contract may not be renewed and 238 jobs could be affected.
Motsepe first invested in the company in 2018.
Through his company, African Rainbow Capital, he built up almost total control after a series of bailouts of the mine.
Kropz has struggled to meet production targets at Elandsfontein and has courted controversy by attempting to mine in a national park.
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