Africa-Press – South-Africa. Exxaro Resources said on Tuesday it has reached an agreement to buy manganese mines in SA in a deal worth R11.67bn as it diversifies into green transition minerals.
The SA coal miner entered into a binding agreement to buy shares and claims in manganese assets held by Ntsimbintle Holdings and OM Holdings, it said.
The coal miner has been seeking to diversify into manganese and copper as it positions itself to benefit from surging demand for the minerals, vital in the global transition from fossil fuels to cleaner energy technologies.
“The acquisition provides Exxaro with a strong entry point into the manganese sector,” said Ben Magara, who took over as CEO in April.
South Africa is the world’s biggest producer of the steelmaking ingredient. Manganese is also used in lithium-ion ore batteries for electric vehicles.
The deal gives Exxaro exposure to four operating manganese mines in the Northern Cape. The mines have long-term contracts with customers in China and India where Exxaro sells its coal, it said.
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