Exxaro Resources is acquiring a portfolio of manganese assets in South Africa's Kalahari Manganese Field to enhance its diversification and market presence, marking a pivotal step in its transition from coal to a broader minerals and energy-solutions strategy.

Information on the Target

Exxaro Resources Limited has announced its acquisition of a portfolio of manganese assets strategically located within the Kalahari Manganese Field (KMF) in South Africa’s Northern Cape province. This significant investment reflects Exxaro's commitment to transitioning from a coal-centric operation to a diversified minerals and energy-solutions business. The acquisition includes a controlling interest in various mining operations that are poised to enhance the company’s market position and operational capacities.

The target assets include a 74% share in Ntsimbintle Mining, 19.99% of Jupiter, 100% of Ntsimbintle Marketing and Trading, 51% of Mokala, and 9% of Hotazel Manganese Mines. Notably, through this transaction, Exxaro will acquire 100% of Ntsimbintle Mining as part of its deal with OM Holdings, which holds a 26% stake. The acquisition grants Exxaro access to four operating mines, potentially increasing their operational footprint and leveraging significant mineral resources.

Industry Overview in South Africa

The manganese mining industry is a crucial component of South Africa’s broader mining sector, which contributes significantly to the country’s GDP. South Africa is known to hold approximately 80% of the world’s manganese reserves