Exxaro Resources has signed binding agreements to acquire shares and claims in manganese assets owned by Ntsimbintle Holdings and OM Holdings in South Africa for a price consideration of R11.67bn ($637.1m).
The assets are located within the Kalahari Manganese Field (KMF) in the Northern Cape province.
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The transaction includes a 74% share in Ntsimbintle Mining and a 19.99% stake in Jupiter, along with a 100% interest in Ntsimbintle Marketing and Trading, 51% in Mokala and 9% in Hotazel Manganese Mines.
The deal could potentially increase to R14.64bn if Blue Falcon, which owns 49% of Mokala Mines, exercises tag along rights.
Exxaro’s acquisition grants it exposure to four operating mines, including a 60.1% effective ownership in the Tshipi Borwa Mine and marketing rights, a 51% stake in Mokala and a 9% share in Hotazel Manganese Mines.
The transaction is subject to regulatory approvals, with an expected completion date in the first quarter of 2026.
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By GlobalDataExxaro CEO Ben Magara said: “This transaction puts together two strong BEE [Black Economic Empowerment] 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.”
The acquisition marks a strategic diversification from Exxaro’s coal base into a broad minerals and energy solutions business.
Exxaro’s broader strategy involves investments in renewable energy, exploration of essential transition minerals such as manganese and copper, and the use of innovative technologies.
Safika and Ntsimbintle Holdings chairman Saki Macozoma said: “We believe this landmark transaction in terms of which Exxaro is acquiring Ntsimbintle’s portfolio of high-quality manganese assets is significant to the South African mining sector and reinforces Exxaro’s position as a South African mining champion.
“We are pleased that these assets will remain in South African hands as Exxaro is an excellent custodian that shares Safika and Ntsimbintle’s strong values of safety, sustainability and a social licence to operate whilst providing certainty to our valued employees and host communities. The sale of our manganese assets is consistent with our long-term plan to continue to simplify and strengthen our portfolio in order to generate shareholder value.”
Earlier this year, Exxaro Resources announced the resignation of its CEO, Nombasa Tsengwa, just two months after her suspension in connection with a governance investigation.
