Billionaire Patrice Motsepe’s phosphate mine hits trouble after $160 million investment

South African billionaire Patrice Motsepe’s long-running bet on phosphate producer Kropz Plc is facing fresh pressure after the company announced a restructuring of its Elandsfontein mine, following about $160 million of investment.

Kropz said it will halt production of phosphate rock at the South African mine and sell down existing stockpiles as it shifts its focus to nanophos, a softer phosphate rock that releases phosphate more gradually. The restructuring comes as the company struggles to achieve profitability amid pressure on the global fertiliser industry.

Motsepe’s African Rainbow Capital owns about 90 percent of Kropz. He first invested in the company in 2018 and subsequently increased his control through a series of investments and bailouts, making the phosphate producer one of his significant mining bets outside African Rainbow Minerals.

The immediate impact of the restructuring could extend beyond Kropz. Trollope Mining Group, which operates the mine on behalf of Kropz, warned employees in a September 2 letter that its contract could be drastically reduced or terminated at the end of November. As many as 238 jobs could be affected if the contract is terminated.

Kropz attributed the financial pressure partly to the continuing conflict in the Middle East, saying disruption to key fertiliser inputs had affected global fertiliser production and reduced demand for phosphate rock. The company said the new strategy would allow it to concentrate on nanophos while reducing its exposure to the challenges that have weighed on its main product.

The setback comes despite Motsepe’s broader mining portfolio showing a much stronger performance this year. African Rainbow Minerals, the diversified mining group he founded, reported profit attributable to shareholders of $247.7 million for the year ended June 30, 2026, up from about $20.4 million a year earlier. Revenue increased 25.3 percent to about $1.01 billion, while gross profit rose to about $272.5 million from a gross loss of about $11.8 million.

ARM’s stronger performance was driven partly by improved results from its platinum operations. The company reported a sharp recovery in earnings for the year, highlighting the contrast between Motsepe’s established mining interests and the difficulties facing his phosphate investment.

For Kropz, the Elandsfontein restructuring represents another difficult stage in a project that has required substantial capital and years of development. The company will now have to prove that its shift toward nanophos can create a more sustainable operation while managing the employment and financial consequences of scaling back phosphate-rock production.