Moti group considers $500m disposal

Sub-Saharan conglomerate Moti Group is considering selling a $500m stake in the group, that spans chrome-ore mining to aviation.

Moti chairman Zunaid Moti said he would be willing to sell as much as 25% of the closelyheld company to the right partner, but ruled out any initial public offering. “At some stage we would look to partly monetise,” Moti said. “I want to take some money off the table and put it into other things. Now might be a good time.”

The Johannesburg-based company also offers security and transport services and has increased its exposure to Zimbabwe since former president Robert Mugabe was removed in 2017. His replacement, Emmerson Mnangagwa, has said the country is “open for business” and that he would ease local ownership rules and re-engage lenders such as the IMF.

Moti said earlier in 2018 that his company planned to spend $250m in the country over the next four years. “We would like to attract a high net worth who has a vision,” said Moti, who would also consider selling stakes in individual units such as the chrome business.

“There have to be synergies with a new partner,” he said.

Moti’s flagship operation is its African Chrome Fields unit, which mines the stainless steel ingredient in Zimbabwe.

The company, which sells all its chrome ore to Glencore, mines about 420,000 tonnes a year and could boost output to about one million tonnes by the end of 2019, the chairman said.

The company plans to increase production at its own alluvial mines, and is also looking to buy from local artisanal miners. Moti has set up a training programme for those small-scale miners, will provide them with safety equipment, and will be able to pay them up to four times more than they get for selling hand-mined ore.

While artisanal production has a chequered reputation — often associated with child labour and environmental damage — various programmes are being developed to help combat those issues.

De Beers is starting a programme in Sierra Leone to trace the route from mine to consumer for what it calls ethicallysourced artisanal gems. There are similar projects planned for cobalt in the Democratic Republic of Congo.

MOTI’S FLAGSHIP OPERATION IS ITS AFRICAN CHROME FIELDS UNIT WHICH MINES [THE METAL] IN ZIMBABWE.