Milestones / History
The Reclamation Group (Pty) Ltd (“Reclam”) traces its origins to a metal recycling business co-founded by David Kassel in 1970.
Prior to 1998, activities of the founders of Reclam included:
- the re-opening and commissioning of the Roberts Victor Diamond Mine near Kimberley which was an underground kimberlite deposit. The mine was the 21st largest producer of gem quality diamonds in the world;
- the re-opening and commissioning of the Monarch Gold Mine and ownership of the Shashi mines in Botswana;
- ownership of an equity stake in Denver Metal Works, a company involved in the production of non-ferrous semi-finished products;
- ownership of a 66% equity interest in the largest supplier of truck spares in South Africa;
- ownership of a 66% equity interest in a wholesale pharmaceutical company; and
- ownership of an 80% equity interest in three multi-media companies.
In late 1998, Reclam was established to form a market leader that would have the size and scope to create economies of scale and operating efficiencies in the South African recycled metal processing industry.
Between 1998 and 2000, Reclam acquired a number of businesses involved in the production of recycled ferrous and non-ferrous metal products. It consolidated 14 such businesses situated in South Africa and in Mozambique.
By 2000, Reclam achieved a leading position in the recycled ferrous and non-ferrous metals markets, expanding its operations by diversifying into other products that could benefit from similar economies of scale and operating efficiencies. This included:
- a 50% equity interest in a rubber processing and devulcanising company as well as all of its associated intellectual property;
- glass, paper, cardboard and plastics (through the acquisition of Enviroglass in December 2000 and Capital Waste and Plastics in January 2001); and
- diversification into the provision of integrated waste management services.
In 2000, Reclam identified growth opportunities in Southern Africa and established operations in Botswana, Kenya, Malawi, Mozambique, Swaziland, Zambia and Zimbabwe.
In 2003, Reclam concluded its first Black Economic Empowerment (“BEE”) transaction pursuant to which 25% plus one share of the equity was sold to Phamangu Investment Holdings in a transaction partly funded by the Industrial Development Corporation of South Africa.
During 2005, the Company expanded its business into semi-finished products as part of the strategy to add value to its wide range of recycled products it produces. These included aluminium ingots in partnership with Murray & Roberts Limited, and copper sulphate, integral to the refining of platinum.
Effective 1 February 2006, in terms of a management buyout, The New Reclamation Group (Proprietary) Limited (“Reclam Group”) was formed to acquire the business and all of the assets of Reclam. In order to facilitate this buyout, Reclam Group issued a high-yield bond, which is listed on the Irish Stock Exchange, to a broad range of prominent European investors.
Subsequent to the buyout, Reclam Group concluded a further empowerment transaction in 2008. Reclam Group’s empowerment partners are part of a consortium which holds a 25% stake in Scaw Metals,a division of Anglo Operation Limited.
Today, Reclam’s business can be considered as “above-the-ground” mining. Reclam beneficiates basic commodities that are sold to the same customer base as that of the mines. The only difference is that its raw material is a secondary or recycled material relative to “virgin” material which is beneficiated from an ore.
Ensuring reputational excellence, Reclam and the ReclamGroup have been recognised as follows:
- In 2005, Mr. David Kassel was awarded the ABSA Jewish Business Achiever Award
- In 2007 and 2008, nominated as one of South Africa’s Top 500 companies, and number one in its sector;
- In 2008, awarded Standard Bank Trophy for financial performance and contribution to the environment;
- In 2008, nominated for contribution to Broad Based Black Economic Empowerment and Transformation; and
- In 2008, awarded the ANC certificate for commitment to the economic future of South Africa.