Anglovaal
# Anglovaal

Anglovaal Group was one of six large South African holding conglomerates that had interests in mining, finance and industry. It was formed in 1933 as the Anglo-Transvaal Consolidated Investment Company Limited with interests initially in mining. In 1981, it became Anglovaal Limited. It was majority owned throughout its existence by the Hersov and Menell families. In the late 1990s, it would form into two separate companies, Anglovaal Industrial Holdings (AVI) and Anglovaal Minerals (Avmin). As a family owned business, all family interests were to be diluted by 2001. By 2003, Anglovaal Minerals became part of African Rainbow Minerals Limited, a listed black empowerment company.

## History

The company, Anglo-Transvaal Consolidated Investment Company Limited, was formed in Johannesburg, South Africa in June $1933.^{:48}$ It was the creation of mining engineer A.S. (Bob) Hersov, stockbroker Simeon (Slip) G. Menell and Norbert S. Erleigh with the purpose of reopening closed mines after the price of gold $rose.^{:48}$ They would purchase old mines, closed before the First World War, such as Vogel Deep Mine, Vogelstruis Estates and the Bantjes Consolidated $Mines.^{:48}$ These mines and new leases obtained for the state government came to be called Rand $Leases.^{:49}$

Anglovaal's exploration arm, Middle Witwatersrand (Western Areas) Limited was formed in May 1933 to explore for gold with exploration beginning around the Potchefstroom area with aerial $surveys.^{:458}$ After the Second World War, drilling began in 1949 in the Orange Free State on the farms Merriespruit, Harmony and $Virginia.^{:458}$ Enough gold was found to open mine on the Virginia farm in 1955 and Merriespruit in $1956.^{:458}$ In 1981, it was renamed Anglovaal $Limited.^{:458}$

As of 1992, Anglovaal accounted for 2.9% of the Johannesburg Stock Exchange's market capitalisation, one of six large companies that controlled 85.7% of the stock $exchange.^{:149}$

1998 would see the beginning of the end of the family majority-owned Anglovaal Holdings which split into Anglovaal Limited and Anglovaal Industries (AVI) under a new holding company Anglovaal Industrial $Holdings.^{:63}$ The two families would control them until June 2001 when all shares would be worth one $vote.^{:62}$ The remaining mining interests of Anglovaal Limited would be renamed Anglovaal Minerals (Avmin) in December $1998.^{:63}$ Avmin would be controlled by the Menell family.

AVI would retain its Consol, I&J and National Brands while selling off Alpha, Aveng, Bearing Man, Tristel Holdings and Grinaker $Construction.^{:63}$ Aveng (old name Anglovaal Engineering) was an independent company in construction, steel and $cement.^{:271}$ AVI would be controlled by the Hersov family.

Avmin would retain Saturn diamonds, Avgold, Asmang, Lavino and Horizon Chrome Mines and base metals division of Nkomati GO, Avmin Zambia and Chambisi $Metals.^{:63}$ It would sell off Avmin Coal Holdings, Forzando Coal Mines, Doornfontein Coal Mines, Eloff Mining Company, Rhino Minerals and Njala $Minerals.^{:63}$

In 2000 Avmin would sell its stake in the Venetia diamond mine to De Beers, preventing a possible takeover attempt of Avmin, with De Beers selling its shares of Avmin to investors but not Anglo American. In 2002, Anglo American purchased a 35% portion of Avmin. But the former's investment potential was short-lived when Avim sold a portion of its ownership in Avgold from 60 to 42 percent. Anglo then sold their 34.5% share of Avmin to Harmony and ARMgold in May $2003.^{:3}$ The latter two would then make a bid for control of Avgold.

### Origins of SASOL

In the 1930s, Anglovaal, in cooperation with the Burmah Oil Company, created Satmar (South African Torbanite Mining and Refining Company) company to extract oil from shale in the Ermelo $area.^{:411}^{:32}$ Its oil refinery was set up in Boksburg. The site was soon $depleted.^{:411}$ The process then developed into an idea to produce oil from coal, so in 1935, the company purchased a South African licence to build a Fischer-Tropsch $plant.^{:411}$ Dr H.J. van Eck and Etienne Rousseau became involved with the company but falling oil prices in 1937 and the approach of the Second World War ended the idea $temporarily.^{:33}$ Van Eck left in 1940, to become chairman of South African Industrial Development $Corporation.^{:33}$ Anglovaal's decision was to pass on the project which was made for two $reasons.^{:93}$ One, it had failed to find the finance to turn the project into a viable project and secondly, new gold deposits had been discovered in the Orange Free State, a business they better $understood.^{:93}$ An interim committee was formed on 2 June 1950 between the state government and Anglovaal that saw the latter transfer all licensing agreements and coal rights on 25 May 1950 to the government and where the name of the future project, SASOL, was $proposed.^{:33–4}$

