Table of Contents
Key Points
- The South African billionaire’s fortune dipped to $3.4 billion amid falling mining stocks and operational headwinds.
- African Rainbow Minerals plans to close its loss-making Cato Ridge Works, reflecting pressure in South Africa’s mining sector.
- ARM faces a WWF lawsuit and reported a 49% drop in profit due to falling iron ore and PGM prices.
Just a week after his fortune climbed to $3.5 billion, Patrice Motsepe — Southern Africa’s richest Black individual and the first Black African billionaire on Forbes’ global list — has seen his net worth dip by $100 million.
The drop reflects mounting pressure on his broad investment portfolio, particularly in South Africa’s mining sector, where his flagship company, African Rainbow Minerals (ARM), is now preparing to cut jobs.
ARM, Harmony weigh on Motsepe’s fortune
According to Forbes, which tracks the real-time wealth of billionaires globally, Motsepe’s net worth fell from $3.5 billion on July 18 to $3.4 billion this week. This comes after a strong first half of the year, during which his fortune had grown by $500 million from January to mid-July.
The recent slide is tied to weaker performance from two of his key holdings: a 45.9 percent stake in ARM and an indirect 11.8 percent stake in Harmony Gold. Both companies have seen their shares fall by more than 2 percent on the Johannesburg Stock Exchange (JSE).
Adding to the pressure, ARM has announced plans to close its loss-making Cato Ridge Works (CRW) plant, a move that will result in job losses. The closure highlights the strain in South Africa’s manganese industry, as producers wrestle with falling prices and operational costs that continue to rise.
Legal challenges cloud mining outlook
ARM, which has interests in iron ore, manganese, platinum group metals, coal, and base metals, reported a 49 percent drop in headline earnings to R1.52 billion ($83 million) for the first half of 2025. Lower prices for iron ore and PGMs have hit profits hard.
On top of that, the company is facing environmental scrutiny, including a lawsuit from the World Wide Fund for Nature (WWF) over its $160 million phosphate mine near Langebaan Lagoon.
In response to the shifting landscape, ARM has been making adjustments. The company recently raised funds by hedging 18 million shares in Harmony Gold, giving it some breathing room while still keeping a stake in potential future gains.
Between job cuts, legal hurdles, and a tough commodity market, Motsepe and his team are trying to steady the ship, cutting costs, repositioning assets, and keeping one eye on long-term sustainability in an unpredictable mining environment.
