Exxaro Diversifies Portfolio with R11.67B Manganese Deal

Mining company Exxaro Resources has signed binding agreements with Ntsimbintle Holdings and OM Holdings to acquire a portfolio of manganese assets in the Kalahari Manganese Field in South Africa.

The agreement, worth R11.67 billion, will give Exxaro Resources controlling stake in a number of major manganese mines in South Africa’s Northern Cape.

As part of the acquisition, Exxaro Resources is targeting a 74% stake in Ntsimbintle Mining, a 19.99% stake in Jupiter Mines, a 100% stake in Ntsimbintle Marketing and Trading, a 51% stake in Mokola and a 9% stake in Hotazel Manganese Mines.

The company will also gain access to four operating manganese mines – Tsipi Borwa, Mokala, Mamatwan and Wessels.

Exxaro Resources will benefit from the acquired assets’ existing supply agreements with buyers in India and China, over 10-years of life spans and brownfield expansion opportunities for long term revenue generation.