South African phosphate miner plans London IPO by year-end – CEO
CAPE TOWN, Sept 25 (Reuters) – South African phosphate miner, Kropz, is on track to list on London’s AIM Stock Exchange by the end of the year as it prepares for first production from its main asset in 2019, its chief executive said on Tuesday.
Kropz wants to raise cash to pay down debt and further develop its Elandsfontein phosphate mine, which is expected to begin production in the second half of next year, before reaching 900,000 tonnes per annum in 2020.
African Rainbow Capital, the investment arm of African Rainbow Minerals, will be the “cornerstone investor” for the IPO, Ian Harebottle said in emailed response to questions.
“IPO plans are progressing well, and we remain on track to list before end-December,” he said, adding that a second listing in Johannesburg was possible in the future.
Kropz has lined up three buyers and distributors for the phosphate, a chemical used in fertilizer, including South Africa’s Foskor and trading partners Keytrade and Kalyaan, Harebottle said.
The Elandsfontein mine is the subject of court action by environmentalists concerned it could pollute an ancient water aquifer and harm the Langebaan Lagoon.
“We have over two years of data gathered through intensive third-party monitoring of the system which confirm the success of the operation, and most importantly, supports our statements that there is no negative impact,” Harebottle said.
(By Wendell Roelf; Editing by Joe Brock)