Motsepe’s phosphate bet hits trouble after R2.6bn investment

South African billionaire Patrice Motsepe’s near decade-long backing for phosphate producer Kropz Plc has backfired, with the company announcing the restructuring of its sole operating asset and one of its contractors warning of hundreds of job losses.

On Monday, London-based Kropz said it will restructure its Elandsfontein mine, about 70 miles northwest of Cape Town, after R2.6 billion of investment, halting production of its main product as it struggled to make a profit partly because of the impact of war between the US and Iran on the global fertilizer industry.

Motsepe’s African Rainbow Capital owns about 90% of Kropz.

Trollope Mining Group, which mines on Kropz’s behalf at Elandsfontein, said in a September 2 letter to employees seen by Bloomberg that its “contract will be drastically reduced if not completely terminated at the end of November” and 238 jobs may be cut.

Motsepe first invested in the company in 2018;