Exxaro to acquire manganese assets in South Africa for $637m

Exxaro Resources has signed binding agreements to get shares and claims successful manganese assets owned by Ntsimbintle Holdings and OM Holdings successful South Africa for a terms information of R11.67bn ($637.1m).

The assets are located wrong the Kalahari Manganese Field (KMF) successful the Northern Cape province.

The transaction includes a 74% stock successful Ntsimbintle Mining and a 19.99% involvement successful Jupiter, on with a 100% involvement successful Ntsimbintle Marketing and Trading, 51% successful Mokala and 9% successful Hotazel Manganese Mines.

The woody could perchance summation to R14.64bn if Blue Falcon, which owns 49% of Mokala Mines, exercises tag on rights.

Exxaro's acquisition grants it vulnerability to 4 operating mines, including a 60.1% effectual ownership successful the Tshipi Borwa Mine and selling rights, a 51% involvement successful Mokala and a 9% stock successful Hotazel Manganese Mines.

The transaction is taxable to regulatory approvals, with an expected completion day successful the archetypal 4th of 2026.

Exxaro CEO Ben Magara said: “This transaction puts unneurotic 2 beardown BEE [Black Economic Empowerment] companies who are some accordant dividend payers and positions Exxaro arsenic formidable and diversified mining institution of notation successful South Africa and I americium delighted that we tin utilise our beardown ember resources arsenic a basal to prudently accelerate our plus portfolio to see modulation minerals and to turn our vigor solutions business.

“This acquisition provides Exxaro with a beardown introduction constituent into the manganese sector. Manganese is indispensable to steelmaking and has a increasing marketplace successful the artillery and renewable exertion proviso chains. The acquisition volition spot america deploy our operational and commercialized expertise successful bulk commodities, logistics and heavy cognition of the South African mining scenery including the regulatory environment, to unlock sustained maturation and stakeholder worth successful the Kalahari Manganese Field.”

The acquisition marks a strategical diversification from Exxaro’s ember basal into a wide minerals and vigor solutions business.

Exxaro's broader strategy involves investments successful renewable energy, exploration of indispensable modulation minerals specified arsenic manganese and copper, and the usage of innovative technologies.

Safika and Ntsimbintle Holdings president Saki Macozoma said: “We judge this landmark transaction successful presumption of which Exxaro is acquiring Ntsimbintle’s portfolio of high-quality manganese assets is important to the South African mining assemblage and reinforces Exxaro’s presumption arsenic a South African mining champion.

“We are pleased that these assets volition stay successful South African hands arsenic Exxaro is an fantabulous custodian that shares Safika and Ntsimbintle’s beardown values of safety, sustainability and a societal licence to run whilst providing certainty to our valued employees and big communities. The merchantability of our manganese assets is accordant with our semipermanent program to proceed to simplify and fortify our portfolio successful bid to make shareholder value.”