Mining and construction materials company Afrimat reported a sharp drop in operating profits during the 2024 fiscal year, citing among the main factors the closure of the border between Mozambique and South Africa, which halted anthracite exports through the Port of Maputo.
Afrimat’s chief executive, Andries van Heerden, explained that during the second half of the year, the company was unable to export products from the Nkomati anthracite mine through the Maputo corridor due to border restrictions. This disruption significantly compromised revenues from international sales.
‘The absence of exports through Mozambique directly affected the group’s financial results,’ said Van Heerden, adding that although operations in Nkomati improved in the last months of 2024, the overall impact was reflected in a sharp decline in profits.
In total, Afrimat’s operating profit fell by 58.5%, from US$63.9 million (4.1 billion meticals) to US$26.5 million (1.7 billion meticals). The difficulties were exacerbated by other factors, such as falling international iron ore prices, increased shipping costs and limitations on the export railway line.
Nevertheless, Van Heerden pointed out that the reopening of the Mozambican border has already allowed the company to resume exports through the Port of Maputo, securing commitments for up to 80% of the anthracite volumes planned for the new financial year. ‘We are optimistic about the recovery of our export levels and improved financial performance in 2025,’ he said.
Afrimat, which also operates in the cement, aggregates and industrial minerals sectors, has reinforced its commitment to diversifying its activities and continuously improving operational efficiency, while seeking to stabilise its financial position after a year marked by several external challenges.
Engineering News
