33591 - Manufacture of Edible Salt - November 2016

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JOHANNESBURG OFFICE 7 STURDEE AVENUE, ROSEBANK, 2196 P O BOX 3044, RANDBURG, 2125 TEL: +27 11 280-0880 PORT ELIZABETH OFFICE 1ST FLOOR, BLOCK F, SOUTHERN LIFE GARDENS, 70 2ND AVE NEWTON PARK 6045 P O BOX 505, HUNTERS RETREAT, 6017 TEL: +27 41 394-0600 WEBSITE: WWW.WHOOWNSWHOM.CO.ZA REG NO: 1986/003014/07 DIRECTORS: MAUREEN MPHATSOE (CHAIRPERSON), BEN RICHARDSON (NON-EXECUTIVE), ANDREW MCGREGOR (MANAGING), CARLA MOULD (ALTERNATE) © COPYRIGHT WHO OWNS WHOM (PTY) LTD MANUFACTURE OF EDIBLE SALT Siccode 33591 November 2016 Compiled by: YASMIN MAHOMEDY [email protected]

Transcript of 33591 - Manufacture of Edible Salt - November 2016

JOHANNESBURG OFFICE 7 STURDEE AVENUE, ROSEBANK, 2196

P O BOX 3044, RANDBURG, 2125 TEL: +27 11 280-0880

PORT ELIZABETH OFFICE

1ST FLOOR, BLOCK F, SOUTHERN LIFE GARDENS, 70 2ND AVE NEWTON PARK 6045

P O BOX 505, HUNTERS RETREAT, 6017 TEL: +27 41 394-0600

WEBSITE: WWW.WHOOWNSWHOM.CO.ZA REG NO: 1986/003014/07

DIRECTORS: MAUREEN MPHATSOE (CHAIRPERSON), BEN RICHARDSON (NON-EXECUTIVE), ANDREW MCGREGOR (MANAGING), CARLA MOULD (ALTERNATE)

© COPYRIGHT WHO OWNS WHOM (PTY) LTD

MANUFACTURE OF EDIBLE SALT

Siccode 33591

November 2016

Compiled by: YASMIN MAHOMEDY [email protected]

Manufacture of Edible Salt Contents Siccode 33591

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CONTENTS

1. INTRODUCTION .......................................................................................................................1

2. DESCRIPTION OF THE INDUSTRY ..............................................................................................1

2.1. Industry Value Chain ................................................................................................................. 2

2.2. Geographic Position .................................................................................................................. 2

3. SIZE OF THE INDUSTRY ............................................................................................................3

4. STATE OF THE INDUSTRY .........................................................................................................5

4.1. Local .......................................................................................................................................... 5

4.1.1. Corporate Actions ........................................................................................................... 6

4.1.2. Regulations ..................................................................................................................... 6

4.1.3. Enterprise Development and Social Economic Development ........................................ 8

4.2. Continental ............................................................................................................................... 9

4.3. International ...........................................................................................................................10

5. INFLUENCING FACTORS ......................................................................................................... 11

5.1. Economic Environment ...........................................................................................................11

5.2. Health Concerns ......................................................................................................................12

5.3. Technology, Research and Development (R&D) and Innovation ...........................................12

5.4. Labour .....................................................................................................................................13

5.5. Cyclicality ................................................................................................................................14

5.6. Environmental Concerns .........................................................................................................14

6. COMPETITION ....................................................................................................................... 14

6.1. Barriers to Entry ......................................................................................................................15

7. SWOT ANALYSIS .................................................................................................................... 15

8. OUTLOOK .............................................................................................................................. 16

9. INDUSTRY ASSOCIATIONS ...................................................................................................... 16

10. REFERENCES .......................................................................................................................... 16

10.1. Publications ............................................................................................................................16

10.2. Websites .................................................................................................................................16

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COMPANY PROFILES .................................................................................................................... 18

BLOEMHOF SALT AND CHEMICAL COMPANY (PTY) LTD ................................................................18

CEREBOS LTD ..................................................................................................................................20

CRYSTAL SALT CC (THE) ...................................................................................................................22

DONALD BROWN GROUP (PTY) LTD ...............................................................................................24

DWAGGAS SOUTWERKE (PTY) LTD .................................................................................................26

KALKPOORT SOUTWERKE CC ..........................................................................................................28

KLIPHOEK SOUTWERKE (PTY) LTD ..................................................................................................30

ORANGE RIVER SALT WORKS (PTY) LTD..........................................................................................31

SALT REFINERS AND PACKERS HOLDINGS (PTY) LTD ......................................................................33

SUID AFRIKAANSE SOUTWERKE (PTY) LTD .....................................................................................34

SUID-AFRIKAANSE SOUT KOOPERASIE LTD ....................................................................................36

SUNNYDALE TRUST .........................................................................................................................38

SWARTKOPS SEESOUT (PTY) LTD ....................................................................................................40

UPINGTON SUPER SALT (PTY) LTD ..................................................................................................42

VELDDRIFT SALT COMPANY (PTY) LTD ............................................................................................43

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1. INTRODUCTION

This report focuses on the manufacture of edible salt in South Africa. The industry which recorded total

sales of raw material to the value of R158m in 2015, is struggling to compete against cheaper imports

mainly from Botswana and Namibia. In 2015 for example, South African companies imported salt from

Botswana and Namibia to the value of R49m and R147.2m respectively. Added to the problem of low-

cost imports are increasing input costs and the volatile Rand/Dollar exchange rate which have resulted

in the number of local salt producers decreasing from 86 to 17 in the past five years.

2. DESCRIPTION OF THE INDUSTRY

The edible salt industry occupies a small space in the salt sector in comparison to the non-edible salt

industry. Any salt used to flavour or enhance food or to preserve it, or salt employed as a means of

increasing the intake of vital nutrients such as iodine, is grouped as edible salt. Salt is classified as an

essential element for human consumption because it carries out necessary functions within the human

body and plays an important part in making food safe to ingest.

Salt is produced from two sources: rock salt and brine. Salt production in South Africa is confined to

underground brines by way of inland saltpans, coastal saltpans and seawater. Coastal saltpans are

located along the southern and western coast of the country where the resources of some pans are

acquired from the sea through flooding or seepage. Other pans within 25 kilometres of the sea obtain

salt from marine sediments that are found below the underlying surface. The general lifespan of a salt

pan depends on how it is treated and if well-maintained with ideal conditions a salt pan can be in

operation for more than 50 years.

In the edible salt sector, there are two product markets: the manufacture and supply of food grade

coarse salt; and the manufacture and supply of food grade fine salt. Salt can range in quality from

grade one to grade four, depending on how many impurities are in it. Refined salt is salt that has been

processed to purify it further and improve its storage and handling characteristics. Table salt contains

between 97% and 99% sodium chloride, which is the chemical name for salt, and is derived from sea

salt or rock salt. The balance consists of anti-caking and cleaning agents such as fluoride, calcium

carbonate, magnesium carbonate and aluminium hydroxide. Unrefined sea or rock salt is subjected to

minimal processing and may contain between 85% and 95% sodium chloride with the balance

consisting of trace minerals and elements such as magnesium and potassium.

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In the local sector there are 17 salt producers, ranging from large vertically integrated companies to

small-scale producers, as well as co-operatives. There are also a number of salt re-packers such as GOT

Holdings, Golden Crest, Ocean Brand that import salt in bulk and re-pack it to sell locally.

2.1. Industry Value Chain

[Source: Salt of the Earth]

Salt companies use unique and diverse equipment on the salt pans and in the factories in order

to harvest and refine salt. Much of this equipment is expensive and bought from overseas

suppliers.

Owing to heavy salt water erosion, equipment needs to be replaced on a regular basis.

Maintenance of the equipment is also needed and the salt companies make use of servicing

companies and specialist mechanic suppliers.

Salt is supplied to both the food and non-food industries where it acts as an important

ingredient in a wide variety of products.

2.2. Geographic Position

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Many of the inland salt pans can be found in the remote and dry regions of the Northern Cape and the

North West Province. Saltcor, a subsidiary of the Donald Brown Group operates salt pans in Brandvlei

and in Upington, which is ideally located to produce salt because of the extreme heat in the summer

months and the generally dry climate. Being in a sparsely populated area engenders a clean, pollution-

free quality salt, which trades favourably and offsets the cost of transportation.

The Eastern Cape’s shoreline provides wide access to a salt resource, namely seawater, as well as

coastal salt pans which often occur about 25km from the seashore. However, unlike inland saltpans,

sea salt production is more capital-intensive and needs up to a five-year lead time before production

is actually achieved. A number of small-scale miners, mostly cooperatives, also operate in the Port

Elizabeth region.

3. SIZE OF THE INDUSTRY

According to the Department of Mineral Resources (DMR), the value of total sales of raw salt

in 2015 was R158m compared to R140.6m in 2011. Local sales have been increasing at an

average rate of 1.56% annually in the past decade mainly due to increasing salt prices. The

DMR noted that information at the Department is limited as it only includes the salt mining

and quarrying industry and not the entire value chain.

The number of major salt producers in South Africa has decreased from 86 to 17 in the past

five years. Currently there are approximately 26 operational salt companies of varying size.

The main players are Chlor-Alkali Holdings (Pty) Ltd, holding company of Cerebos, Donald

Brown Group (Pty) Ltd, Marina Sea Salt, Kalkpoort Soutwerke cc and Sun Salt.

Donald Brown is one of South Africa’s five largest salt producers and the Group’s company,

Royal Salt distributes household and table salt in the Western Cape. 60% of Royal Salt's

production for the South African market goes to the agricultural, fishing and industrial sectors

and the balance goes to the retail spice market. On a national basis Royal Salt specialises in the

packaging of house-brand salts for leading retail companies.

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Summary of Major Players in the Industry

Company Employees

Production

Capacity tons

p.a.

Revenue

Pro

du

ce

Dis

trib

ute

Re

fin

e

Eastern Cape

Cerebos Ltd 240 40,000 x x x

Swartkops Seesout (Pty) Ltd

t/a Marina Sea Salt 170 x x

Free State

Suid-Afrikaanse Sout Kooperasie Ltd

t/a SA Sout 12 8,500

R3.2m

(2016) x x

Gauteng

Salt Refiners and Packers Holdings

(Pty) Ltd

332

(Group) 100,000 x x

Limpopo

Bloemhof Salt and Chemical Company

(Pty) Ltd

t/a Bergpan Soutwerke

37 x

The Crystal Salt CC 31 x x

Northern Cape

Kalkpoort Soutwerke CC 70 60,000 x x

Orange River Salt Works (Pty) Ltd 28 30,000 x x

Suid Afrikaanse Soutwerke (Pty) Ltd

(Production will commence in

approximately May 2017)

x x

Sunnydale Trust

t/a Sunnydale Salt Works / Sunnydale

Trading

11 R5.0m

(2015) x x

Upington Super Salt (Pty) Ltd 120 16,000 x x

Western Cape

Donald Brown Group (Pty) Ltd 300 98,000 x x x

Dwaggas Soutwerke (Pty) Ltd 20 x x

Kliphoek Soutwerke (Pty) Ltd 2 x

Velddrift Salt Company (Pty) Ltd 38 R9.0m

(2016) x x

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4. STATE OF THE INDUSTRY

4.1. Local

According to the DMR, less than 50% of the country’s salt consumption requirement is produced

locally. Most small salt producers have been unable to capitalise on opportunities to expand because

of increasing input costs and it has become cheaper to import salt from Namibia and Botswana than

to produce locally.

SA Top Imports

2015

R million

Namibia Botswana

H2501: Salt (including table salt and denatured salt) and pure

sodium chloride, whether or not in aqueous solution or

containing added anti-caking or free-flowing agents; sea water

147.2 49.0

[Source: www.idc.co.za]

Bennie Bekker, Marketing Director of Marina Sea Salt based in Port Elizabeth, reported that the

company’s sea-derived salt accounts for only about 20% of local production. This is partly because

Marina Sea Salt is produced via evaporation pans and bulk harvesting, and it requires a lengthy waiting

period of about 24 months, depending on the weather, before the harvesting process can begin.

Bekker noted that interventions are urgently needed for the stimulation of the local salt industry,

specifically in the Eastern Cape, in response to increasing global demand. “Expansion of current

operations, establishment of new projects and mainstreaming small-scale salt miners to exploit

reserves inland and along the coast,” are some of the interventions proposed. Mariner employs around

200 people and together with competitor, Cerebos, have made Port Elizabeth the country’s major

source for sea salt.

SA Sout Koöperasie, comprising 15 small salt producers outside Bloemfontein in the Free State,

produces mainly mid-level salt used for mixing into animal feed and is sold to feedlots and farmers.

According to one producer, increasing regulations have created barriers to entry and in the case of

iodisation requirements, have stopped salt producers like him from supplying food grade salt. He

reported that none of producers in the cooperative were licensed despite having applied for mining

rights in an attempt to be compliant. However due to the costs involved and not being able to “meet

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the criteria, we are declined every time.” See Regulations for more information on the required

criteria.

4.1.1. Corporate Actions

On 4 March 2015 the Competition Tribunal unconditionally approved the large merger between Chlor-

Alkali Holdings (CAH) (Pty) Ltd and Khumo Bathong Strategic Investments No 2 (Pty) Ltd and Star Focus

115 (Pty) Ltd. CAH holds shares in various subsidiaries and joint ventures involved in the manufacture

and/or distribution of salt namely Walvis Bay Salt Holdings (Pty) Ltd, Ekango Salt Refiners (Pty) Ltd,

Botash (Pty) Ltd, Salt & Chemicals (Pty) Ltd and NCP Chlorchem (Pty) Ltd. The merger results in

horizontal and vertical overlaps in the activities of the merging parties who wanted to expand their

businesses and grow their footprint.

In March 2015 Cerebos was incorporated into the CAH group of companies. CAH’s purchase of Cerebos

included all assets which are two refineries, one in Port Elizabeth, which is a vacuum salt plant, and

one in Berg River in the Western Cape. These two refineries continue to supply the South African

market, and the Cerebos brand will be expanded into Namibia and further north.

4.1.2. Regulations

Legislation on Iodine Deficiency Disorder (IDD) was passed in 1995 in South Africa. The IDD regulations

relate to the fortification of Foodstuffs - Foodstuffs, Cosmetics and Disinfectants Act (54/1972) for the

mandatory iodisation of all food grade salt. Iodisation of salt should be at the level of 40 - 60 parts per

million (ppm) in order to comply with the legislation.

Amendments to the Foodstuffs, Cosmetics & Disinfectants Act, which came into effect on 30 June

2016, require that a loaf of bread contains no more than 4% salt, down from 4.8%. By 2019 the amount

of salt in a loaf of bread must decrease to 3.8%. Other food items that have to reduce their salt content

include butter, breakfast cereals, potato crisps, processed meats, soup and gravy powder, instant

noodles and jelly.

The Codes of Good Practice for the Mineral Industry

The objective of the Codes of Good Practice for the Mineral Industry is to encourage the creation of

an industry that is non-racial, non-sexist and prosperous. The document also lays out administrative

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principles that allow for the effective implementation of minerals and mining legislation and enhance

the implementation of the mining industry’s Broad-Based Socio-Economic Charter.

Mineral and Petroleum Resources Development Act

Salt is defined as a mineral under South African law and governed by the Mineral and Petroleum

Resources Development Act. As such, salt producers must comply with its requirements as mining

houses do, including black economic empowerment, social and labour plans and rehabilitation.

According to the DMR, mining rights require a comprehensive application that should include a

geological report, details of the market, social and labour plans, royalty payments, evidence of detailed

financial and technical competence and an environmental management plan. Mining permits, on the

other hand, require basic information on financial and technical competence and environmental

management, but they restrict the area mined to 1.5 hectares and proof that the mineral can be mined

optimally within two years.

The Mine Health and Safety Act, No. 29 of 1996

The Act protects the constitutional right of a person to an environment that is not harmful to a worker’s

health or well-being, a right that is entrenched in the South African Constitution. As South African

mines are the deepest and among the most dangerous in the world, this is an important piece of

legislation that aims to lower the number of accidents and fatalities that are a constant source of

debate between mining companies and unions.

Broad-based Socio-economic Empowerment Charter for the South African Mining and Minerals

Industry (Mining Charter)

In April 2015, the former Minister of Mineral Resources, Advocate Ngoako Ramatlhodi, announced the

results of the review that had been conducted to measure the mining industry’s compliance with the

Mining Charter since it was first implemented in 2004. There is, however, disagreement between the

DMR and the mining industry around the application of the ownership rule of the Mining Charter. The

DMR’s understanding of the ownership element is that empowerment transactions where the black

economic empowerment (BEE) ownership level has since fallen due to disposal of assets or for other

reasons should not be included in the calculation of progress made. The industry, however, believes

the Mining Charter does not require of mining companies to maintain a 26% BEE ownership level once

it has been achieved; a principle which is referred to as the ‘once empowered, always empowered’

principle. The Chamber of Mines then decided to seek clarity through the High Court on the

interpretation of BEE ownership transactions carried out between 2004 and 2014, and the court’s

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decision, which is expected later in 2016, will influence both the assessment of the sector’s historical

performance in terms of ownership, and the way forward. However, in a surprise move, Minister of

Mineral Resources, Mosebenzi Zwane, published the Reviewed Draft Broad-Based Black Economic

Empowerment (B-BBEE) Charter for the South African Mining and Minerals Industry on 15 April 2016.

According to respondents, the document is the centre of intense legal scrutiny and the Chamber of

Mines is negotiating with the DMR on behalf of all mining companies.

4.1.3. Enterprise Development and Social Economic Development

As mentioned above, the draft revised mining charter demands a perpetual minimum 26% black

ownership per mining right. This is still being negotiated and has not yet been finalised. The mining

charter contains other elements such as preferential procurement and skills development but in the

salt industry, greater emphasis is placed on ownership than these other aspects of empowerment.

In an effort to empower the work force with better skills and knowledge, Cerebos has implemented

Mission Directed Work teams (MDW) in the company’s production facility, under the guidance of the

National Productivity Institute (NPI). This programme allows individuals with initiative to stand out and

take on more responsibility within the business.

With a long-term lease agreement with the Bethelsdorp Salt Pans Board on the Swartkops salt pan,

Marina Sea Salt runs several community development projects including a Poverty Alleviation

Programme where it assists about ten soup kitchens in the greater Port Elizabeth area. These soup

kitchens feed approximately 2,000 people daily.

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Opportunities for SMMEs

Although the DMR confirmed that salt production began declining in 2008 mainly due to changes in

the weather pattern and the world economic recession, the Department believes that there are still

abundant salt reserves in South Africa, as well as growing demand. “Small-scale miners are therefore

encouraged to seize the opportunity to enter this market, particularly as South Africa imports

approximately 50% of salt to meet its chemical industry demand levels.” However, salt producers

disagree and have reported that it is not only difficult to comply with all the regulatory aspects but it

has become very expensive to produce food grade salt in South Africa. Local prices are always

compared to imports, which tend to be cheaper.

4.2. Continental

According to the Iodine Global Network (IGN), approximately 5 million tons of salt is produced in Africa.

There is almost no salt production in the entire Central and West African region except for Ghana and

Senegal so these two countries meet the requirements of most of the region. Nigeria prefers to import

its table salt requirement from outside the region, mainly from Namibia but also from Australia, India

and Brazil. Botswana and Namibia are the main sources of salt in southern Africa.

Namibian company Walvis Bay Salt Holdings, which exports nearly 50% of table salt and industrial

grade salt into the Southern African Development Community (SADC) region, as well as to Nigeria,

Cameroon and other countries in West Africa and Europe, has expanded its operations on the Atlantic

coast of Namibia. The company reported in July 2016 that it had invested nearly US$5m to increase

the size of its salt pans so it could supply the North American market. The expanded salt pan now

measures 5, 500 hectares, up from 4, 500 hectares, and will have an annual production capacity of 1

million tons compared to 750,000 tons. Walvis Bay Salt Holdings, through its various subsidiaries,

Ekango Salt Refiners, Salt and Chemical and Walvis Bay Salt Refiners, is the largest producer of salt in

southern Africa and produces salt by solar evaporation of seawater. It produces salt for various

markets, including industrial-grade salt for Chlor-Alkali production and refined salt for household and

agricultural markets in Africa and Europe. Triple refined sea salt, mainly for human consumption, is

exported to neighbouring countries, including Angola, the Democratic Republic of Congo (DRC),

Botswana, South Africa and Zambia.

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South African Manufacturers in Africa

Subsidiary of Donald Brown Group, African Salt Works exports salt to Angola, Cameroon, Congo, DRC,

Malawi, Mauritius, Swaziland, Zimbabwe and Zambia. Shipments are despatched to West and East

African ports by sea through Walvis Bay in Namibia and Cape Town. Products are also despatched to

inland destinations within the Southern African sub-continent by rail or road transport.

4.3. International

According to international market research, global salt consumption is forecast to grow 1.9% annually

through 2020 to 335 million metric tons, valued at US$14.1bn. The average price for salt across the

world is forecast to increase 2.0% per year to US$42 per metric ton in 2020. While a strong dollar and

a collapse in commodity prices exerted downward pressure on dollar-denominated salt prices across

the globe in 2014 and 2015, a more stable commodities market and increases in global demand in

volume terms are expected until 2020. As shown in the table below, the United States (US) and China

dominate world salt production, together producing 40% of the world’s annual quarter billion tons of

salt. As can be seen in the table below, in 2015 China produced a total of 70 million metric tons of salt

followed by the US with 48 million metric tons.

Top 15 Global Salt Producers in 2015

Country Million Metric

Tons 2014

Million Metric

Tons 2015

1 China 68.0 70.0

2 United States 45.3 48.0

3 India 15.8 17.0

4 Canada 13.0 12.5

5 Germany 12.2 12.2

6 Australia 11.0 11.0

7 Mexico 10.7 10.5

8 Brazil 7.4 7.5

9 Chile 8.5 9.0

10 United Kingdom 6.7 6.7

11 Ukraine 6.1 6.1

12 France 6.0 6.0

13 Turkey 5.4 5.5

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Country Million Metric

Tons 2014

Million Metric

Tons 2015

14 Spain 4.3 4.3

15 Poland 4.3 4.2

[Source: United States Geological Survey (USGS)]

5. INFLUENCING FACTORS

5.1. Economic Environment

South Africa’s pressured economic environment is making it difficult for local producers to be

competitive. According to salt producers, increasing input costs continue to affect profit margins and

the industry cannot compete with lower priced imports. The main determinant of the cost of salt in

South Africa is transport, which is increasingly becoming more expensive, especially when compared

to the low price of the commodity. Transport costs for coarse salt account for 30% of the value of salt.

Saltcor’s inland pans in the remote Brandvlei area previously used rail transport but due to operational

inefficiencies it now uses road transport, which is much more expensive.

As mentioned, South Africa relies on imports from Botswana and Namibia for a significant portion of

its food grade salt and industrial grade salt. As a result the volatile Rand exchange rate impacts on the

profits of companies importing salt and manufacturers who import equipment. The graph below shows

the Rand’s movements from December 2015 to October 2016.

[Source: www.fin24.com]

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5.2. Health Concerns

Excess salt is known to cause high blood pressure or hypertension, which is a leading cause of heart

disease and strokes. On average, South Africans consume between 7.8 and 9.5g of salt per day, which

is equivalent to one and a half teaspoons and exceeds the World Health Organisation’s 5g a day

recommendation. As mentioned, new legislation to reduce the amount of salt in processed foods

came into effect on 30 June 2016. The salt content per two slices of bread has been reduced from

650mg to 400mg‚ while breakfast cereals have to contain less than 500mg per 100g serving. A second

set of regulations to lower the salt level further is expected to come into effect in 2019.

5.3. Technology, Research and Development (R&D) and Innovation

Cerebos uses innovative new technology that is a first in sub-Saharan Africa, to produce Sodium

Chloride known as pure vacuum dried salt (PVD), which is of a better quality and is produced through

an environmentally friendlier process. Cerebos is the only manufacturer of PVD salt in Southern Africa

and supplies this salt in the form of table salt, to retail and industrial customers. In 2015 the Cerebos

plant based in the Coega Industrial Development Zone (IDZ) was awarded the world’s leading food

safety standard certification, the FSSC 22000, making it the only salt manufacturer in Southern Africa

to have been granted this accreditation.

Salt is a low-priced commodity and according to Donald Brown, “You have to innovate to differentiate

yourself.” The biggest innovative success for the group is salt grinders marketed under the Kalahari

brand. The company has expanded internationally and the grinders are being sold to restaurants in 23

countries. The Brown’s group is also marketing a variety of speciality products such as smoked salt,

barbecue flavour salt and wine-infused salt.

In 2014 Marina Sea Salt launched a new Lighthouse Sea Salt Range in two packaging solutions:

A 500g flask - the closure comes with a screw-in lid for easy refilling and also a dual purpose

Pour and Shake flip lid; and

A 750g stand-up pouch with an easy pour nozzle with a screw-in-lid that prevents moisture

and spillage.

In August 2016 Cerebos launched Cerebos Lite Salt, which contains 65% sodium chloride with 35%

potassium chloride, a salt alternative that allows consumers to reduce their salt intake. The company

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also launched a Be Salt Wise campaign to encourage people to proactively address potentially fatal

lifestyle choices and diseases by eating wisely.

5.4. Labour

Unions

Food and Allied Workers Union (FAWU)

Registered on 10/4/2007

Tel No: +27 21 637 9040

Fax No: +27 21 637 9190 / +27 21 637 6164

Email: [email protected]

[email protected] [email protected]

Website: www.fawu.org.za

National Union of Mineworkers (NUM)

Registered on 16/1/2002

Tel No: +27 11 377 2000/1

Fax No: +27 86 560 0329 / +27 86 732 4517

Email: [email protected]

Website: www.num.org.za

Skills and Training

Producing refined salt is a complex process, which needs specialised knowledge. Walvis Bay Salt

Refiners reported that the company plans to enter into a technology agreement with an international

leading salt producer and plans to send employees abroad to learn international best practices.

In August 2016 the Nelson Mandela Bay Municipality’s Motherwell Urban Renewal Programme

(MURP), in partnership with Cerebos, hosted a certificate handover ceremony to recognise the efforts

of ten underprivileged learners, who had undergone various business and skills development training.

The learners underwent a three-month SETA-accredited training course, comprising theoretical and

practical case studies, where learners went out into their community to conduct research on local

businesses.

All the major salt producers offer training initiatives which focus on Health and Safety programmes

and operational functions. Training on the food safety standards system called Hazard Analysis and

Critical Control Point (HACCP) provides employees with knowledge on regulations for the safe

manufacture of food products.

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5.5. Cyclicality

Salt is only produced in the summer months because of the high temperatures needed for the

evaporation and crystallisation process. A setback of a week or two because of contamination of the

salt stock can be crucial when there are only five to six months to stockpile for an annual supply.

In addition to the above, the need for salt in the agricultural industry is seasonal. During seasons of

above average rainfall that allow for plentiful animal grazing, demand for salt is low compared to

drought periods when demand increases. Cattle feed contains salt to regulate sodium intake in cattle

and sheep.

5.6. Environmental Concerns

Natural or environmental factors affect production, which can be severely slowed if a dust storm or

birds flying over an open pan contaminate the pan, compromising the quality of the salt extracted.

Rain is the biggest natural threat to production as a fine balance in seasonal rainfall is needed. If there

is too much rain, the salt dissolves back into the ground and if too little rain falls, the underground

water level is not high enough for the pan to be viable. The severe drought that South Africa is

experiencing could dry up many salt pans completely.

6. COMPETITION

Ownership Analysis of the Industry

Producers in the local salt industry not only compete with other producers but also with cheaper

imports. In the 2015 Competition Commission’s hearing during the merger between Chlor-Alkali

Holdings (Pty) Ltd (CAH) and Khumo Bathong Strategic Investments No 2 (Pty) Ltd (Khumo) and Star

Focus 115 (Pty) Ltd (Star Focus), competitors of the merging parties indicated to the Commission that

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salt “re-packers put considerable pressure on the industry and that as a result the number of salt

producers in South Africa had declined from 86 to 17 in the past five years.” In the food grade coarse

salt market, the Commission found that the post-merger market share of the merged entity would be

less than 10%. CAH competes with larger players such as Donald Brown, Swartkops, Kalkpoort and Sun

Salt. In the food grade fine salt market the post-merger market share of the merged entity would be

less than 30%. Other large players in the market include Oranje Soutwerke, Kalkpoort Soutwerke, Sun

Salt and Donald Brown.

6.1. Barriers to Entry

Entry into the production market is highly capital-intensive as factories need to be built and

specialised equipment designed and built for the harvesting and refining of salt.

Salt producers require a mining licence and have to comply with various requirements as in

the case of traditional mining houses.

Salt water is highly erosive and equipment needs to be replaced frequently which is a costly

exercise.

Substitute products are not a threat in this sector as they come in at a much higher cost and

are not readily available. Alternatives include potassium chloride which can be used as a food

flavourant and calcium chloride, calcium magnesium acetate and hydrochloric acid that can be

substituted for certain chemical processes.

Entry barriers to the imported salt market are low as new entrants do not need to have access to salt

mines and pans to compete. They are able to buy bulk salt from various sources and re-pack it into

smaller sizes.

7. SWOT ANALYSIS

Strengths Weaknesses

Steady demand for the product from the

edible and chemical sectors.

Beneficial climatic conditions, geographic

locations of salt pans and brines and

constant supply of seawater ensure a ready

supply of raw material.

Production in summer months only.

Salt water erosion causes high turnover of

equipment.

Difficulty experienced by small players to

become licensed.

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Opportunities Threats

New product lines driven by market

demand.

Increasing global demand for salt.

Increasing electricity and fuel costs.

Low-cost imports.

Changing regulations requiring food

manufacturers to use less salt.

Adverse weather conditions.

8. OUTLOOK

South Africa’s edible salt industry faces a bleak future due to increasing operating costs, the possibility

of continued drought and increasing volumes of cheaper imported salt. Neil Sutherland, manager at

Sun Salt Services, commented, “It has become very expensive to produce food grade salt in South

Africa as one has to comply with all the regulatory aspects.” The recent regulation restricting the

quantity of salt used in a variety of food products is also expected to lead to a decrease in local demand

for food grade salt. Although the global demand for salt is expected to increase, stakeholders

confirmed that local producers are unlikely to be able to supply salt at price that is sufficiently

competitive.

9. INDUSTRY ASSOCIATIONS

There is no local industry association for salt producers and manufacturers in the South African sector.

10. REFERENCES

10.1. Publications

Trade Report: Summary of South Africa’s Merchandise Trade in 2015, IDC

10.2. Websites

http://mype.co.za

http://southernafrican.news

www.bdlive.co.za

www.bizcommunity.com

www.botash.co.za

www.cerebos.co.za

www.chamberofmines.org.na

www.coega.co.za

www.dmr.gov.za

www.donaldbrowngroup.co.za

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www.engineeringnews.co.za

www.financialmail.co.za

www.foodstuffsa.co.za

www.freedoniagroup.com

www.idc.co.za

www.iol.co.za

www.mg.co.za

www.nmbbusinesschamber.co.za

www.rnews.co.za

www.safiri.co.za

www.saflii.org.za

www.salt.co.za

www.sasout.co.za

www.sunsaltservices.co.za

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COMPANY PROFILES

BLOEMHOF SALT AND CHEMICAL COMPANY (PTY) LTD

Trading As: Bergpan Soutwerke

Reg. Number: 1957/000485/07

VAT Number: 4780112480 Updated: 2016-09-30

Postal Address: Physical Address:

PO Box 100, Vivo,

Louis Trichard, 0924

Zoutpan, Vivo,

Louis Trichard, 0924

Tel: +27 15 593-0127 Fax.: +27 15 593-0127

Email: [email protected] Website:

Shareholders

Shareholder Percentage

Directors 100.00

Directors

Name Appointment

Date Designation

Ms Barbara Emmerich 1996-10-31 Executive Director

Ms Tonya Annemarie Emmerich 2009-02-01 Executive Director

Mr Jan Hendrik Knox 2012-02-01 Executive Director

Managers

Name Appointment

Date Designation

Mr Jacques Fourie General Manager

History of Business

Bloemhof Salt and Chemical Company (Pty) Ltd t/a Bergpan Soutwerke was established on 22

February 1957.

Nature of Business

Bloemhof Salt and Chemical Company (Pty) Ltd t/a Bergpan Soutwerke is a producer of salt.

Nr. of Employees 37

Banks First National Bank (a division of FirstRand Bank Ltd)

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Auditors J du Plessis Kleingeld

Company Year End June

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CEREBOS LTD

Reg. Number: 1945/018614/06

VAT Number: 4400120087

BEE Rating: Not Finalised Updated: 2016-11-02

Postal Address: Physical Address:

PO Box 7137, Newton Park,

Port Elizabeth, 6045

Coega Saltworks, Grahamstown National Road,

Coega, Port Elizabeth, 6001

Tel: +27 41 403-6700 Fax.: +27 41 363-5378 / +27 41 403-6714

Email: [email protected] Website: www.cerebos.co.za

Branches

Branch Area Head Tel

Cerebos Alrode Gauteng +27 11 964-4906

Cerebos Bergriver Plant Western Cape

Cerebos Newton Park, Port Elizabeth Eastern Cape +27 86 010-4638

Shareholders

Shareholder Percentage

Chlor-Alkali Holdings (Pty) Ltd 100.00

Directors

Name Appointment

Date Designation

Mr Duncan Edmond Gerard Bettesworth 2015-03-04 Executive Director

Mr Jacobus Albertus Burger Executive Director

Mr John Chrichton Drinkwater 2008-01-07 Executive Operations Director & Plant

Manager

Mr Ian David Forbes Non-Executive Director

Mr Derek Anthony Halstead-Cleak 2015-03-04 Executive Director

Mr Gavin David Hogg 2002-10-31 Executive Sales Director

Mr Karabo Caleb Radebe Non-Executive Director

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Managers

Name Appointment

Date Designation

Ms Aninen Claasen Financial Manager

Mr Patrick Hill Operations Manager

History of Business

Cerebos Food Corporation Ltd was established in March 1945. The company was taken over by

Anglovaal in 1961, becoming a subsidiary of National Brands Ltd. It has undergonen several name

changes, the most recent being from National Salt Ltd to Cerebos Ltd on 20 October 2000. In

October 2002, a management buyout occurred and Star Focus 115 (Pty) Ltd acquired the company.

A BEE partner, Khumo Bathong Strategic Investments, was introduced in March 2006. In March

2015, Cerebos was incorporated into the CAH group of companies.

Nature of Business

Cerebos Ltd is involved in the processing and wholesale of salt for the FMCG sector, supplying

companies such as Pick ’n Pay, Albany Bakeries, Spar, Clover, Robertsons and Adcock Ingram.

Cerebos operates two refineries; one in Port Elizabeth, which is a vacuum salt plant and one in Berg

River in the Western Cape. These two refineries supply the South African and Southern African

countries.

The company has the distribution rights for Premier UK and Salinity Europe in RSA.

Nr. of Employees 240

Company Secretary Mr KA Liston

Banks Standard Bank of South Africa Ltd

Auditors PKF (PE) Inc

Company Year End December

Units Manufactured

40,000 tons p.a.

Brandnames

Buffalo, Cerebos

Trademarks

Cerebos

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CRYSTAL SALT CC (THE)

Reg. Number: 1986/010822/23

VAT Number: 4850108541

BEE Rating: Level 4 Smith and Smith BEE Verifications (Pty) Ltd Updated: 2016-10-27

Postal Address: Physical Address:

PO Box 123, Vivo,

Louis Trichardt, 0924

Farm Zoutpan, MS 459,

Vivo, Louis Trichardt, 0924

Tel: +27 15 593-0128 Fax.: +27 86 583-4880

Email: [email protected] Website:

Shareholders

Shareholder Percentage

Ms B Emmerich 50.00

Ms EP Fourie 50.00

Directors

Name Appointment

Date Designation

Ms Barbara Emmerich 2009-05-07 Member

Ms Elizabeth Petronella Fourie 2016-09-29 Member

Managers

Name Appointment

Date Designation

Ms Liz Shipley Financial Manager

History of Business

The Crystal Salt Company CC was established in June 1986 and had a name change to The Crystal

Salt CC.

Nature of Business

The Crystal Salt CC is a producer and distributor of coarse salt.

Nr. of Employees 31

Banks First National Bank (a division of FirstRand Bank Ltd)

Auditors J du Plessis Kleingeld

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Company Year End June

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DONALD BROWN GROUP (PTY) LTD

Reg. Number: 1998/003642/07

VAT Number: 4300214667 Updated: 2016-10-27

Postal Address: Physical Address:

PO Box 6254, Parow East,

Cape Town, 7501

28 Trans Oranje Road, Tygerberg Business Park,

Parow East, Cape Town, 7500

Tel: +27 21 951-6501 Fax.: +27 21 951-6509

Email: [email protected] Website: www.donaldbrowngroup.co.za

Shareholders

Shareholder Percentage

Donald Brown Family Trust 100.00

Directors

Name Appointment

Date Designation

Mr Stephen Andrew Brown 1998-01-03 Executive Managing Director

Mr Donald Brown 1998-02-27 Chief Executive Officer

Managers

Name Appointment

Date Designation

Mr Hein van der Merwe Financial Manager

Mr Wally van Rooyen Human Resources Manager

History of Business

Saltfin (Pty) Ltd was established in February 1998 and had a name change to Donald Brown Group

(Pty) Ltd on 4 May 2005.

Nature of Business

Donald Brown Group (Pty) Ltd controls group operations from the Cape and owns companies

involved in the mining and processing of salt. The salt is processed and packed for domestic,

industrial and agricultural use. Three salt pans are based near Brandvlei, one in Prieska and one

north of Upington. Processing and packaging takes place at the factories in Brandvlei, Upington and

Parow and salt is sold under the Saltcor and Seepo labels.

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Operations are conducted through the following subsidiaries:

• Saltcor (Pty) Ltd - operates the salt pans and distributes its product mainly to the agricultural and

animal feed industries

• Royal Salt Company (Pty) Ltd - distributes household and table salt mainly in the Western Cape,

but also increasingly to the rest of South Africa

• Salpura (Pty) Ltd - factories produce refined, bakery and ultra fine salt

• African Salt Works (Pty) Ltd - involved in the import and export of salt to neighbouring countries

Nr. of Employees 300

Banks First National Bank (a division of FirstRand Bank Ltd)

Auditors De Villiers Broodryk (Paarl) Inc

Company Year End February

Units Manufactured

98,000 tons p.a.

Brandnames

Royal, Salpura, Saltcor, Salty Shakes, Sandton, Seepo

Trademarks

Seepo

Direct Subsidiaries, Associates & Investments

Company Name Country Percentage

African Salt Works (Pty) Ltd South Africa Undisclosed

Royal Salt Company (Pty) Ltd South Africa Undisclosed

Salpura (Pty) Ltd South Africa Undisclosed

Saltcor (Pty) Ltd South Africa Undisclosed

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DWAGGAS SOUTWERKE (PTY) LTD

Reg. Number: 1971/002358/07

VAT Number: 4880120912

BEE Rating: Not Rated Updated: 2016-10-27

Postal Address: Physical Address:

PO Box 60997, Table View,

Cape Town, 7439

4 20th Street, Elsies River,

Cape Town, 7490

Tel: +27 21 933-2184 / +27 83 456-9431 Fax.: +27 21 933-1975

Email: [email protected] Website: www.dwaggas.co.za

Shareholders

Shareholder Percentage

Ghobba Holdings CC 74.00

Directors

Name Appointment

Date Designation

Mr Elias Albertus Nel 1990-11-30 Executive Director

Mr Gerrit Jacobus Nel 1976-06-04 Executive Director

Mr Wilmot Siwaphi Prusent 2014-07-01 Executive Director

Managers

Name Appointment

Date Designation

Mr Godfrey Engelbrecht Marketing Manager

History of Business

Dwaggas Soutwerke (Pty) Ltd was established in February 1971.

Nature of Business

Dwaggas Soutwerke (Pty) Ltd operates as a producer and refiner of salt.

Nr. of Employees 20

Banks Standard Bank of South Africa Ltd

Auditors Greenwoods Chartered Accountants

Company Year End June

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Corporate Governance in Relation to SED & ED

The company makes contributions to various charities.

Direct Subsidiaries, Associates & Investments

Company Name Country Percentage

Commissioner Pan Salt Works (Pty) Ltd (The) South Africa 100.00

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KALKPOORT SOUTWERKE CC

Reg. Number: 1999/023475/23

VAT Number: 4410182192

BEE Rating: Level 7 EmpowerBEE (Pty) Ltd Updated: 2016-11-03

Postal Address: Physical Address:

PO Box 1331, Upington, 8800 52 Karakoel Street, Upington, 8801

Tel: +27 54 331-1418 Fax.: +27 54 331-3128

Email: [email protected] Website:

Shareholders

Shareholder Percentage

JCK du Toit Family Trust 64.00

Mr OS Rooi 26.00

Mr JCK de Witt 10.00

Directors

Name Appointment

Date Designation

Mr Jacob Casper Kruger De Witt 2011-12-13 Member

Mr Jacob Casper Kruger du Toit 2011-12-13 Representative Trustee

Mr Onyanitswe Samuel Rooi 2011-09-14 Member

Managers

Name Appointment

Date Designation

Mr Jacques du Toit Operations Manager

Mr Chase Hofmann Marketing Manager & Sales Manager

Mr Philip Meyer Financial Manager

Mr Harry van Zyl Human Resources Manager

History of Business

Kalkpoort Soutwerke CC was established in May 1999.

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Nature of Business

Kalkpoort Soutwerke CC is involved in the mining of salt, at saltpans situated approximately 80

kilometres outside Upington, supplying to customers such as Budget Food Products and African Salt,

amongst others.

Nr. of Employees 70

Banks Absa Bank Ltd

Auditors Nel & Vennote

Company Year End February

Units Manufactured

60,000 tons p.a.

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KLIPHOEK SOUTWERKE (PTY) LTD

Reg. Number: 2001/012902/07

VAT Number: 4520117229 Updated: 2016-11-03

Postal Address: Physical Address:

PO Box 168, Velddrif,

Vredendal, 7365

Kliphoek, Velddrif,

Vredendal, 7365

Tel: +27 22 783-0822 Fax.: +27 22 783-0822

Email: [email protected] Website:

Shareholders

Shareholder Percentage

Directors 100.00

Directors

Name Appointment

Date Designation

Mr Benjamin Botes 2001-06-19 Executive Director

Mr Peter William Christians 2011-07-04 Executive Director

Mr Jan Jurgen Perold Kotze 2009-12-02 Executive Director

Mr Christoff Leon Kotze 2014-09-29 Executive Director

Mr Jacob Laubscher 2001-06-19 Executive Director

Ms Martha Helena Marais 2009-12-02 Executive Director

Mr Albertus Petrus van Dyk 2001-06-19 Executive Director

History of Business

Kliphoek Soutwerke CC (1987/020006/23) was established in September 1987 and converted to a

private company on 19 June 2001.

Nature of Business

Kliphoek Soutwerke (Pty) Ltd operates as a producer of salt.

Nr. of Employees 2

Auditors Louw & Cronje Inc

Company Year End February

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ORANGE RIVER SALT WORKS (PTY) LTD

Reg. Number: 1960/003387/07

VAT Number: 4280114309

BEE Rating: Not Rated Updated: 2016-11-02

Postal Address: Physical Address:

PO Box 625, Kimberley, 8300 3 Mallet Street, Albertynshof,

Kimberley, 8301

Tel: +27 53 831-1994 Fax.: +27 53 838-1883

Email: [email protected] Website:

Shareholders

Shareholder Percentage

Mr JDP Ferreira 45.00

Mr LI Ferreira 45.00

Mr SO Vermeulen 10.00

Directors

Name Appointment

Date Designation

Mr Leopold Ignatius Ferreira 1976-02-10 Executive Director

Mr Johannes Du Plessis Ferreira 1976-09-23 Executive Director

Mr Christiaan Hendrik Pieter van der Post 2016-01-29 Executive Director

Mr Stephanus Ockert Vermeulen 2012-09-12 Executive Director

History of Business

Leorincia Salt Works (Pty) Ltd was established in September 1960 incorporating the operations of a

family business, which had been in existence prior to 1943. The name was changed to Orange River

Salt Works (Pty) Ltd on 5 January 1961.

Nature of Business

Orange River Salt Works (Pty) Ltd is involved in the processing and distribution of salt which is

supplied under the Orange Salt Works label, supplying the domestic and agricultural sectors.

Nr. of Employees 28

Banks Standard Bank of South Africa Ltd

Auditors PricewaterhouseCoopers Inc

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Company Year End June

Corporate Governance in Relation to SED & ED

The company is currently not involved in any Socio-Economic or Economic Development

programmes.

Units Manufactured

30,000 tons p.a.

Brandnames

Orange Salt Works

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SALT REFINERS AND PACKERS HOLDINGS (PTY) LTD

Reg. Number: 1971/011139/07 Updated: 2016-11-04

Postal Address: Physical Address:

PO Box 17224, Randhart,

Alberton, 1457

7 Clarke Street, Alrode South,

Alberton, 1448

Tel: +27 11 864-4910 Fax.: +27 11 864-5493

Directors

Name Appointment

Date Designation

Mr Maxim Krok 1986-10-31 Executive Director

Mr Brian Russel Sutherland 1986-05-06 Executive Director

History of Business

Salt Refiners and Packers Holdings (Pty) Ltd was established in September 1971.

Nature of Business

Salt Refiners and Packers Holdings (Pty) Ltd operates as a holding company for companies within the

group which are involved in the production, distribution and marketing of salt.

Nr. of Employees 332 (Group)

Auditors Gert IF Jonker Chartered Accountants

Company Year End March

Units Manufactured

100,000 tons p.a.

Direct Subsidiaries, Associates & Investments

Company Name Country Percentage

Salt Refiners and Packers (Pty) Ltd South Africa 100.00

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SUID AFRIKAANSE SOUTWERKE (PTY) LTD

Reg. Number: 1979/001912/07

VAT Number: 4750116966 Updated: 2016-11-03

Postal Address: Physical Address:

Private Bag X6009, Upington, 8800 48 Karakoel Street, Upington, 8801

Tel: +27 54 337-5500 Fax.: +27 54 337-5534

Shareholders

Shareholder Percentage

Directors 100.00

Directors

Name Appointment

Date Designation

Ms Leah Assegai 2014-02-20 Non-Executive Director

Mr Andre John Blaauw 1996-05-12 Executive Director

Mr Gift van Staden 2006-11-14 Non-Executive Director

Managers

Name Appointment

Date Designation

Mr Riaan Archer Financial Manager

Other Key Personnel

Name Appointment

Date Designation

Ms Marihana du Toit Accountant

History of Business

Suid Afrikaanse Soutwerke (Pty) Ltd was established on 12 April 1979.

Nature of Business

Suid Afrikaanse Soutwerke (Pty) Ltd will operate as a producer and distributor of salt.

Banks Absa Bank Ltd

Auditors du Toit van den Heever Inc

Company Year End August

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General Comment

Production will commence in approximately May 2017.

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SUID-AFRIKAANSE SOUT KOOPERASIE LTD

Trading As: SA Sout

Reg. Number: 1958/000002/24

VAT Number: 4380112765

BEE Rating: Level 4 Amax BEE Verifications (Pty) Ltd Updated: 2016-11-02

Postal Address: Physical Address:

PO Box 10, Soutpan,

Bloemfontein, 9356

Farm Jahkalsfontein 155, Soutpan,

Bloemfontein, 9356

Tel: +27 51 831-1113 Fax.: +27 51 831-1211

Email: [email protected] Website: www.sasout.co.za

Shareholders

Shareholder Percentage

Members 100.00

Directors

Name Appointment

Date Designation

Mr Jan Louis Badenhorst Executive Director

Mr Piet Coetzee Cronje Executive Director

Mr Ockert Marthinus Fourie Executive Director

Mr Christopher Francios van der Berg Executive Director

Ms Dina Alida van Jaarsveld Executive Director

Managers

Name Appointment

Date Designation

Ms Anel Cronje Office Manager

History of Business

Suid-Afrikaanse Sout Kooperasie Ltd t/a SA Sout was established in November 1958. The company is

currently undergoing structural changes.

Nature of Business

Suid-Afrikaanse Sout Kooperasie Ltd t/a SA Sout is involved in the production and distribution of

agricultural, industrial and domestic salt. There is one plant in Northern Cape.

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Nr. of Employees 12

Banks Standard Bank of South Africa Ltd

Auditors PricewaterhouseCoopers

Insurance Brokers Topsure

Turnover [2016] R 3.20m ($ 0.21m) (As per company)

Company Year End June

Production Capacity

8,500 tons p.a.

General Comment

The company is currently undergoing structural changes.

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SUNNYDALE TRUST

Trading As: Sunnydale Salt Works / Sunnydale Trading

Reg. Number: IT 97/48

VAT Number: 4050104613

BEE Rating: Not Rated Updated: 2016-11-03

Postal Address: Physical Address:

PO Box 1, Salt Lake,

Kimberley, 8731

Sunnydale, Salt Lake,

Kimberley, 8731

Tel: +27 53 298-2108 Fax.: +27 53 298-2091

Email: [email protected] Website:

Directors

Name Appointment

Date Designation

Mr Herbert Dugmore 1981-01-01 Trustee

Ms Jean Dugmore 1981-01-01 Trustee

Mr Herbert Oswald Dugmore 1999-08-05 Trustee

Mr Ken Dugmore 1981-01-01 Trustee & Finance Manager

History of Business

Sunnydale Trust t/a Sunnydale Salt Works / Sunnydale Trading was established in June 1981.

Nature of Business

Sunnydale Trust t/a Sunnydale Salt Works / Sunnydale Trading is involved in the farming of sheep

and cattle, as well as the sale of salt which is manufactured on the farm. The company is also

involved in the retailing of products, such as flour and dog food on a small scale, as well as the

retailing of phosphates. Major clients include ALB Abattoir, GWK Ltd, NWK Ltd and OVK Ltd.

Nr. of Employees 11

Banks Standard Bank of South Africa Ltd

Auditors Preece & Associates

Turnover [2015] R 5.00m ($ 0.31m) (As per company)

Company Year End June

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Corporate Governance in Relation to SED & ED

Sunnydale Trust is involved in supplying financial aid to a local creche.

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SWARTKOPS SEESOUT (PTY) LTD

Trading As: Marina Sea Salt

Reg. Number: 1988/003809/07

VAT Number: 4690101607

BEE Rating: Not Rated Updated: 2016-11-03

Postal Address: Physical Address:

Private Bag X1, Swartkops,

Port Elizabeth, 6209

Old Uitenhage Road, M10, Perseverance,

Swartkops, Port Elizabeth, 6210

Tel: +27 41 463-1100 Fax.: +27 41 463-2908

Email: [email protected] Website: www.salt.co.za

Shareholders

Shareholder Percentage

Mr GTVW Schoombee 80.00

Simapa Investment Trust 14.00

Mr V van Heerden 5.00

Mr ST Campher 1.00

Directors

Name Appointment

Date Designation

Mr Barend Thomas Bekker 2011-07-01 Executive Director

Mr Stanley Thomas Campher 2009-07-01 Executive Director

Mr Daniel Johannes Schoombee 2009-07-01 Executive Director

Mr Peter John Sidego 2015-07-01 Executive Director

Mr Christopher George Stange 2013-07-01 Executive Director

Mr Vincent (Vince) van Heerden 2009-07-01 Chief Executive Officer & Company Secretary

Mr Belmondo James York 2015-07-01 Executive Director

History of Business

Swartkops Seesout Ltd (1951/002780/06) t/a Marina Sea Salt was established in 1951 and converted

to a close corporation (1988/010588/23) in April 1988 and reverted in July 1988 to a private

company.

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Nature of Business

Swartkops Seesout (Pty) Ltd t/a Marina Sea Salt operates as a manufacturer and wholesaler of salt

under the Marina brand name.

Nr. of Employees 170

Company Secretary Mr V van Heerden

Banks Nedbank Ltd (a division of the Nedbank Group Ltd)

Auditors Moore Stephens

Company Year End June

Corporate Governance in Relation to SED & ED

The company is involved in the following projects:

• Skills development and training is done on a continuous basis

• The company supports local communities where it does business

• Through the company's poverty alleviation programme it assists about ten soup kitchens in the

greater Port Elizabeth area, thus feeding approximately 2,000 people daily

• Marina Sea Salt has a long history of involvement within the community. The Walmer Football

Association, New Brighton and the Zwide Football Association with its 36 affiliated clubs all benefit

from the company's assistance

Brandnames

Marina

Trademarks

Marina

Distribution Rights

Marina

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UPINGTON SUPER SALT (PTY) LTD

Reg. Number: 1968/013439/07

VAT Number: 4960120857 Updated: 2016-11-02

Postal Address: Physical Address:

PO Box 204, Upington, 8800 48 Karakoel Street, Upington, 8801

Tel: +27 54 337-5500 Fax.: +27 54 337 5534

Shareholders

Shareholder Percentage

Directors 100.00

Directors

Name Appointment

Date Designation

Ms Leah Assegai 2014-02-20 Executive Director

Mr Andre John Blaauw 1996-05-12 Executive Director

Mr Gift van Staden 2006-11-14 Executive Director

Managers

Name Appointment

Date Designation

Mr Riaan Archer Financial Manager

History of Business

Upington Super Salt (Pty) Ltd was established in November 1968.

Nature of Business

Upington Super Salt (Pty) Ltd is involved in the harvesting and refining of salt. Oranje Soutwerke

(Upington) (Pty) Ltd, an affiliated company, packages and distributes the salt.

Nr. of Employees 120

Banks Absa Bank Ltd

Auditors du Toit van den Heever Inc

Company Year End August

Units Manufactured

16,000 tons p.a.

Manufacture of Edible Salt Page 43 of 46 Siccode 33591

Copyright Who Owns Whom (Pty) Ltd

VELDDRIFT SALT COMPANY (PTY) LTD

Reg. Number: 1991/003360/07

VAT Number: 4390129718 Updated: 2016-10-29

Postal Address: Physical Address:

PO Box 1609, Cape Town, 8000 3rd Floor, 9 Church Square,

Cape Town, 8001

Tel: +27 21 464-3100 Fax.: +27 21 461-0523

Directors

Name Appointment

Date Designation

Mr Simon De Villiers Graaff 2015-02-06 Non-Executive Director

Mr Brett Gavin Moore 2004-07-20 Non-Executive Director

Ms Bernice Liesel Pillay 2010-08-22 Non-Executive Director

Mr Yntze Schrauwen 1991-06-28 Executive Director

Mr Dane Cornelis Schrauwen 2000-08-25 Non-Executive Director

History of Business

Velddrift Salt Company (Pty) Ltd was established on 27 June 1991.

Nature of Business

Velddrift Salt Company (Pty) Ltd is a producer and distributor of pure natural unrefined sea salt and

has 1 factory.

Nr. of Employees 38

Company Secretary Graaffs Trust Ltd

Banks Standard Bank of South Africa Ltd

Auditors Moore Stephens

Turnover [2016] R 9.00m ($ 0.61m) (As per company)

Company Year End March