South African billionaire Patrice Motsepe\u2019s near decade-long backing for phosphate producer Kropz Plc has backfired, with the company announcing the restructuring of its sole operating asset and one of its contractors warning of hundreds of job losses. <\/p>\n\n\n\n
On Monday, London-based Kropz said it will restructure its Elandsfontein mine, about 70 miles northwest of Cape Town, after $160 million (R2.5 billion) of investment, halting production of its main product.<\/p>\n\n\n\n
It has struggled to make a profit partly because of the impact of the war between the US and Iran on the global fertiliser industry. Motsepe\u2019s African Rainbow Capital Ltd. owns about 90% of Kropz.<\/p>\n\n\n\n
Trollope Mining Group, which mines on Kropz\u2019s behalf at Elandsfontein, said in a 2 September letter to employees, seen by Bloomberg, that its \u201ccontract will be drastically reduced if not completely terminated at the end of November\u201d and 238 jobs may be cut.\u00a0<\/p>\n\n\n\n
Motsepe first invested in the company in 2018; through his African Rainbow Capital company, he built up almost total control after a series of bailouts of the mine. <\/p>\n\n\n\n
Kropz has struggled to hit production targets at Elandsfontein and courted controversy by trying to mine in a national park.\u00a0<\/p>\n\n\n\n
African Rainbow declined to comment beyond Kropz\u2019s statement. Kropz and Trollope didn\u2019t immediately respond to requests for comment.<\/p>\n\n\n\n
The company\u2019s share price fell 39% in London after the announcement, giving it a market cap of just 9.1 million pounds (R196 million), down from a peak of 120 million pounds (R2.59 billion) in 2022.\u00a0<\/p>\n\n\n\n
\u201cThere has continued to be significant financial pressure on the operations arising predominantly from the continued Middle East conflict,\u201d Kropz said in the statement. <\/p>\n\n\n\n
\u201cThe disruption to key fertiliser inputs has adversely affected global fertiliser production and demand for phosphate rock.\u201d<\/p>\n\n\n\n
The company will cease output of phosphate rock and will sell down its stockpiles, it said. It will focus on the production of so-called nanophos, a soft rock that releases phosphate more gradually.<\/p>\n","protected":false},"excerpt":{"rendered":"
South African billionaire Patrice Motsepe\u2019s near decade-long backing for phosphate producer Kropz has backfired, with the company announcing the restructuring of its sole operating asset.<\/p>\n","protected":false},"author":59,"featured_media":817487,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2097321318752440391","_sma_facebook_post_id":"191437357620492_2199564994197233","_sma_instagram_post_id":"17983869609068389","_sma_x_attempts":1,"footnotes":""},"categories":[9872],"tags":[26447,4136],"class_list":["post-874430","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-kropz","tag-patrice-motsepe"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/874430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=874430"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/874430\/revisions"}],"predecessor-version":[{"id":874444,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/874430\/revisions\/874444"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/817487"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=874430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=874430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=874430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}