Billionaire-backed Kropz to cut staff

Kropz Plc, the phosphate producer backed by billionaire Patrice Motsepe, said it will cut its own staff as it won’t renew its operating and maintenance agreement with contractors at its operation in South Africa when it expires in November.

The company, which mines for the fertiliser ingredient at the Elandsfontein mine about 70 miles northwest of Cape Town, said the operation has about 540 workers including contractors. It will now focus on production of nanophos, a soft rock that releases phosphate more gradually, for the South African market and sell down its stocks of phosphate rock.

“Kropz will continue maintaining the majority of the unused plant in a care and maintenance state that will ensure a quick return to phosrock production when market conditions become more favourable,” Chief Operating Officer Mark Maynard said in a reply to queries.

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The company said on September 7 that it would restructure the operation after $160 million of investment as the war in the Middle East exacerbated already poor market conditions. Separately contractor Trollope Mining Group told employees that its contract may not be renewed and 238 jobs could be affected.

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. Kropz has struggled to hit production targets at Elandsfontein and courted controversy by trying to mine in a national park.

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