Beeshoek is located in the Northern Cape province of South Africa. The mine is owned by Assmang, a 50/50 JV between Assore and African Rainbow Minerals, and produces high grade lump and fines products. All production from Beeshoek (3 Mtpa) is supplied to ArcelorMittal under a long term supply agreement which is expected to continue for the life of the mine. After costs falling each year since 2013, operating costs rose in 2017 due to rising labour and power costs. We expect higher domestic inflation to put pressure on costs going forward.