South African coal producer, Exxaro Resources, has signed a R11.67 billion ($610 million) agreement to acquire operating manganese assets in the country’s Northern Cape province.
The move marks the company’s strategic entry into the manganese sector as part of its plan to diversify into minerals critical for the global energy transition.
The deal, disclosed in a statement on Tuesday, involves the purchase of shares and claims from Ntsimbintle Holdings and OM Holdings.
According to Exxaro, the acquisition will grant it access to four operational manganese mines with long term contracts in markets such as China and India.
Exxaro, traditionally known for coal mining, has been pursuing new opportunities in the copper and manganese sectors.
The company said the latest transaction aligns with its long term growth strategy and supports its efforts to remain relevant in a rapidly changing energy landscape.
“This acquisition provides Exxaro with a strong entry point into the manganese sector,” the company noted in the statement.
It added that the manganese mines complement its existing portfolio and provide geographical and commodity diversification.
Ben Magara, who was appointed CEO of Exxaro in April, has been leading the company’s shift towards energy transition minerals.
He said the manganese deal represents a step forward in positioning the company to benefit from growing demand for battery metals and cleaner technologies.
South Africa is the world’s largest producer of manganese, a key input in steelmaking and an essential component in lithium ion batteries used in electric vehicles.
Exxaro noted that securing a foothold in this market would enable the company to tap into global supply chains focused on sustainable industrial development.
The assets covered in the transaction are located in the Northern Cape, a region known for its mineral wealth.
Exxaro said the mines are already operational and supply manganese under long term contracts to buyers in Asia, particularly in India and China, where the company also exports coal.
The company did not disclose the names of the specific mining operations but confirmed that the deal includes full ownership interests in the targeted assets, along with associated infrastructure.
Finalisation of the transaction remains subject to regulatory approvals and other customary closing conditions.
Exxaro, listed on the Johannesburg Stock Exchange, said it would continue to explore additional opportunities in the energy transition mineral space as part of its broader sustainability goals.
