Exxaro Resources acquires manganese assets for R11.67 billion in South Africa
JSE-listed Exxaro Resources has announced its agreement to acquire manganese assets in South Africa for R11.67 billion
Image: Exxaro Resources Limited
JSE-listed Exxaro Resources has announced its agreement to acquire manganese assets in South Africa for R11.67 billion.
The deal includes key assets within the Kalahari Manganese Field and will provide Exxaro with stakes in several operating manganese mines, including Tshipi Borwa, Mokala, and Hotazel manganese mines.
In a statement issued to the media on Tuesday, the Eskom coal supplier said the acquisition enhances its commodity diversity and strengthens its position with long-life assets.
Ben Magara, CEO of Exxaro, said the acquisition provides Exxaro with a strong entry point into the manganese sector.
"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." Magara said.
"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 company added that the acquisition was also part of its natural strategic commitment to building a sustainable, future-fit portfolio.
Saki Macozoma, Chairman of Safika and Ntsimbintle Holdings, highlighted that the transaction, represents a significant milestone for the South African mining sector.
"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 license 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.”
mthobisi.nozulela@iol.co.za
IOL Business