Assore, the JSE-listed mining holding firm in minerals and metals sectors, on Wednesday said it had posted a robust set of profits in the year to June this year.

It said headline earnings for the period under review surged 18 percent to R4.2 billion ($392.7mn) from R3.5 billion ($327.2mn) in the previous financial year.

The increase was on the back of a 17 percent surge to R7.5 billion ($701.3mn) in headline earnings of Assmang, where Assore has a 50 percent stake.

The other 50 percent is held by billionaire businessman Patrice Motsepe’s African Rainbow Minerals (ARM), a mining company with assets in the platinum sector among other sectors. South African companies use headline earnings to measure their profitability.

“World steel production remained strong throughout the year, with growth occurring not only in China but in the rest of Asia, North America and in Europe,” Assore said on Wednesday.

“A series of stimulus measures by the Chinese Central Government has been successful and further investment in rail, social housing and urban infrastructure is underway,” it continued.

It said demand for its products remained robust with supply for both iron and manganese ores having overtaken this surge in demand.

The index price of iron ore in June 2014 was 31 percent lesser than the average price for the 2013 calendar year. Trade in this lower range is expected to continue for the foreseeable future.