South African coal producer Exxaro Resources announced a binding agreement to acquire a portfolio of high-quality manganese assets for a total unadjusted purchase price of R11.67 billion (approximately $637 million). This acquisition marks a major step in Exxaro’s diversification strategy, expanding its commodity base into minerals crucial for the energy transition.
The deal encompasses a 19.99% stake in Jupiter Mines, an Australian Securities Exchange (ASX)-listed company that is a joint venture partner in the major Tshipi Borwa manganese mine located in South Africa’s Northern Cape. Speaking to the SABC, Chairman of Ntsimbintle Holdings, Saki Macozoma, highlighted this aspect, stating, “The transaction therefore makes sense as Jupiter mines shares now return to South African hands.”
The broader acquisition also includes:
- 74% of Ntsimbintle Mining: Giving Exxaro 100% ownership.
- 100% of Ntsimbintle Marketing and Trading: Providing control over Tshipi’s manganese marketing.
- 51% of Mokala Manganese: A newer mine in the Kalahari Manganese Field (KMF).
- 9% of Hotazel Manganese Mines: Operator of the Mamatwan and Wessels mines
Through this acquisition, Exxaro will gain exposure to four operating mines, including an effective 60.1% ownership in the Tshipi Borwa mine, the world’s fourth-largest manganese producer, along with 50.1% marketing rights. Exxaro will also hold a 51% stake in the Mokala mine and a 9% stake in Hotazel Manganese Mines.
Macozoma emphasised the strategic rationale behind the sale for Ntsimbintle Holdings and the opportune timing given Exxaro’s financial position. “The sale is opportune as Exxaro is cashflush and is looking at diversifying their assets, and limiting their exposure to environmentally sensitive coal mining,” he said. He also noted the transaction’s dependence on regulatory approval and Exxaro’s due diligence process.
Exxaro CEO Ben Magara hailed the transaction as a “transformational” move that positions Exxaro as a “formidable and diversified mining company of reference in South Africa.” He emphasised that manganese is essential for steelmaking and has a growing market in the battery and renewable technology supply chains, aligning with Exxaro’s broader strategy to invest in future-facing minerals.
The deal is subject to regulatory approvals and is expected to be finalised in the first quarter of 2026. There is also a potential for the total consideration to increase to a maximum of R14.64 billion if Blue Falcon, which owns the remaining 49% of Mokala Mines, exercises its tag-along rights.
This acquisition signifies Exxaro’s strong commitment to diversifying its portfolio beyond coal and establishing itself as a significant player in the manganese sector, a crucial mineral for both traditional industries and the burgeoning green economy.
Editorial: @lloydnedohe_ on X, E: info@esgfrontiers.co.za
