
Exxaro Resources has announced a ZAR11.67bn ($640m) acquisition of manganese assets in South Africa’s Kalahari Manganese Field, marking a significant step in its transition from a coal-focused company to a diversified minerals and energy solutions provider.
The acquisition involves shares and claims in several entities, including Ntsimbintle and OM Holdings, positioning Exxaro as a key player in the manganese sector.
The transaction encompasses the acquisition of 74% of Ntsimbintle Mining, 19.99% of Jupiter, 100% of Ntsimbintle Marketing and Trading, 51% of Mokala, and 9% of Hotazel Manganese Mines.
Additionally, Exxaro will acquire the remaining 26% of Ntsimbintle Mining from OM Holdings, resulting in full ownership. This acquisition grants Exxaro interests in four operational mines, including a 60.1% stake in Tshipi Borwa Mine and significant shares in Mokala and Hotazel Manganese Mines.
The purchase price, which is subject to adjustments for potential tag along rights and escalations, could increase to ZAR14.64bn ($800m).
Exxaro CEO Ben Magara said: “This transaction puts together two strong BEE companies who are both consistent dividend payers and positions Exxaro as formidable and diversified mining company of reference in South Africa and I am delighted that we can utilise our strong coal resources as a base to prudently accelerate our asset portfolio to include transition minerals and to grow our energy solutions business.
“This acquisition provides Exxaro with a strong entry point into the manganese sector. Manganese is essential to steelmaking and has a growing market in the battery and renewable technology supply chains.
“The acquisition will see us deploy our operational and commercial expertise in bulk commodities, logistics, and deep knowledge of the South African mining landscape including the regulatory environment, to unlock sustained growth and stakeholder value in the Kalahari Manganese Field.”
Exxaro’s diversification efforts are said to be aimed at enhancing long-term shareholder value while contributing to South Africa’s low-carbon economy. The company indicated that is committed to integrating renewable energy sources such as wind and solar into its operations and exploring essential minerals like manganese and copper.
The transaction awaits regulatory approval, with an expected completion date in Q12026.