Shares in African Rainbow Minerals, backed by billionaire Patrice Motsepe, dropped to the lowest in more than a year after the company’s board approved investments of almost $1 billion in two South African mines.
ARM said on Thursday it plans to spend R15.2 billion ($925 million) over seven years to expand the Bokoni platinum-group metals asset and R753 million to reopen the Nkomati nickel operation.
The stock dropped as much as 9.7%, and was down 8.5% as of 12:15 p.m. in Johannesburg.
The company’s mining portfolio also spans coal, gold and manganese, while Motsepe is ARM’s chairman and single biggest shareholder.
ARM suspended Bokoni last year amid weak PGM prices, taking a R2.2 billion impairment at the mine. The company said it has revised its development plan, intending to bring the asset back into operation in 2028 before doubling processing capacity from 2030.
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