Open-pit mining company Afrimat has acquired South-Africa based Glenover Phosphate to expand its presence in the phosphate and rare earth mineral category.

The transaction value is R550m ($34.3m), including R250m ($15.7m) for the assets. The deal also includes an option to acquire Glenover’s 100% shares for R300m ($18.9m).

Situated 90km northwest of Thabazimbi in the Limpopo Province, Glenover’s current reserves of phosphate, vermiculite and rare earth elements are expected to have a resource life of more than 20 years.

The acquisition is expected to further expand the company’s offerings in line with its diversification strategy.

Glenover is also anticipated to expand Afrimat’s product portfolio beyond the ferrous metals value chain by offering a multi-commodity product.

Afrimat’s CEO, Andries van Heerden said that the company will acquire the remaining in situ resource to access the inventory deposits of historically-mined resources and extend the life of project.

Van Heerden said: “This transaction provides the Group with a new platform for growth while at the same time reducing cyclicality.

“Phosphate, vermiculite and rare earth minerals will also widen our international geographic market footprint.”

Afrima is also focusing on the optimisation and implementation of planning for the recently acquired Gravenhage manganese mine.

The Gravenhage manganese mining right and associated assets were purchased from Aquila Steel (S Africa) and Rakana Consolidated Mines for a total purchase consideration of nearly R650m ($40.7m).

Located in the northern part of the Kalahari Manganese field, Gravenhage is a near-development manganese resource. It is situated approximately 120km from Afrimat’s existing Demaneng iron ore mine.