History

Petmin was incorporated in 1972 and listed on the JSE in 1986 as Petra Granite Limited. In 1990 the name of the company changed to Petra Mining Limited when Pretklerk Beleggings (Pty) Ltd acquired control, following which the granite assets were sold.

Between 1990 and 2002, the company acquired a number of gold mining interests on the East Rand of the Witwatersrand Basin and 51% of JIC Mining Services (Pty) Ltd, one of South Africa’s foremost mining services companies. Petra Mining’s interest in JIC was sold with effect from 1 March 1997 to a black economic empowerment (BEE) group. The company’s gold assets were sold in 2002 for US$66.7 million to EAGC Ventures Limited and were subsequently acquired by Bema Gold Corporation.

After these disposals, a capital distribution of approximately R700 million was made to shareholders in 2003 and Petra Mining remained a cash shell until the acquisition of SamQuarz silica mine the following year.

In February 2004 Midnight Storm Investment Holdings (Pty) Ltd acquired Pretklerk’s interest in the company with a vision of developing a black-empowered multi-commodity mining business. This marks the start of a new era in the life of Petra Mining which changed its name to Petmin.

Since 2004 Petmin has assembled a new management team at corporate and operational levels which has refocused the company’s strategy to create a platform that will ensure long-term sustainable shareholder wealth. It has done this by making value-enhancing acquisitions and disposals, and by developing projects into high-yielding, cash-generative assets.

Following the acquisitions of SamQuarz in September 2004 and Springlake Holdings (including the Somkhele anthracite project) in December 2005, Petmin became the largest producer of silica and anthracite in South Africa.

A year later, In December 2006, the company concluded its secondary listing on the London Stock Exchange’s Alternative Investment Market (AIM).

In April 2007 Petmin sold its entire interest in the Baobab Joint Venture (part of Springlake Holdings) to GVM Metals Limited for R35 million.

Somkhele was commissioned on 1 June 2007. Two months later the group announced that a new order mining right had been granted for the colliery’s Area 1. This boosted the production outlook for this operation, increased its life of mine and raised its estimated value by 310%.

By December 2007, Petmin’s BEE shareholding had reached 36%.

In May 2008 Petmin acquired a 25% interest in the Veremo pig-iron project at a cost of R73 million. Its partner, Framework Investment Limited (a wholly owned subsidiary of Kermas Limited), holds the balance. Production is planned to start in 2012.

In October 2008 Petmin announced that it had concluded an agreement to dispose of Spinglake colliery for a cash consideration of approximately R145 million.

From 1 July 2004 to 1 July 2008, Petmin’s market capitalisation went up from R48.5 million to R2,597.4 million – an increase of 5,255%. During the same period its share price on the JSE rose by 840%, from 50 cents to 470 cents.