African Rainbow Minerals SWOT Analysis, Competitors & USP

African Rainbow Minerals (ARM)

Mining and minerals

Heavy Equipment & Engineering

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Along with diverse range of products and fast expansion the company is rated as the top employer of South Africa

Industrial segmentation

Integrated steel and alloy companies, Construction sector , Precious metals refineries  and smelters around the world

Leading South African diversified mining and minerals company with long-life, low unit cost operations.

Below are the Strengths in the SWOT Analysis of African Rainbow Minerals:

1. ARM has interests in a wide range of mines, including platinum and platinum group metals (PGMs), iron, coal, copper, and gold.

2. ARM's Goedgevonden coalmine near Witbank is a flagship of their joint venture with Xstrata, and produces 6.5+ million tons of coal per year

3. ARM entered a joint venture with Vale to build a copper mine in Zambia, which is expected to produce 100,000 tons of copper.

4. Diverse products including  Ferrous Metals, Coal and Copper

5. Employee base of 12,000+

6. Rich exploration projects conducted by the company

7. Mergers and acquisition of new mines in diverse metals and precious metals has kept the company fresh in terms of products

8. Volumes increased in nickel, PGMs, iron ore, chrome ore, export coal and Eskom coal, from Goedgevonden Mine.

Here are the weaknesses in the African Rainbow Minerals SWOT Analysis:

1.  High level of involvement of South African govt has lead to regulatory difficulties for the company in past

2. Criticized for air and water pollution from the mines and metallurgical plants in domestic and international centers has caused problems for the operations of its plants

Following are the Opportunities in African Rainbow Minerals SWOT Analysis:

1. Expansion of precious metals mines and production owing to high and increasing demand of Gold, Silver and Platinum in European , US and Asian markets
2. Capitalize and entry in the copper refining and semiconductor market as the company has interest in copper
3. Expansion of coal mining through mergers thus becoming self sustainable in its energy requirement and commercialization of coal extract

The threats in the SWOT Analysis of African Rainbow Minerals are as mentioned:

1. Threat of domestic politics on the expansion and operational policies of the company
2. Threat of high and increasing commodity prices on the sustenance of profits of the company

3. Threat of economic stability of international market as the sale of products are directly dependent on it.

Below are the top 3 competitors of African Rainbow Minerals:

1. Freeport McMoran Inc
2. AngloGold Ashanti Ltd
3. Gold Fields Litd