Latest news with #Exxaro
TimesLIVE
19-05-2025
- Business
- TimesLIVE
Exxaro accelerates diversification with strategic manganese acquisition
Exxaro Resources announces its entry into the manganese sector with the acquisition of a portfolio of assets in SA's world-class Kalahari Manganese Field. The company entered into binding agreements to acquire a portfolio of manganese assets from Ntsimbintle Holdings and OM Holdings. These include interests in Tshipi Borwa, Mokala and Hotazel manganese mines. The R11.67bn transaction marks a strategic expansion into transition minerals essential for steel and renewable technologies. This bold step aligns with Exxaro's strategy to diversify into transition minerals and energy solutions while remaining anchored in its coal base. The acquisition enhances Exxaro's operational footprint, unlocks long-life resources, and supports SA's just energy transition — reinforcing Exxaro's role as a purpose-driven leader in the mining sector.
IOL News
14-05-2025
- Business
- IOL News
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 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. JSE-listed Exxaro Resources has announced its agreement to acquire manganese assets in South Africa for R11.67 billion. 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.
Yahoo
14-05-2025
- Business
- Yahoo
Exxaro to acquire manganese assets in South Africa for $637m
Exxaro Resources has signed binding agreements to acquire shares and claims in manganese assets owned by Ntsimbintle Holdings and OM Holdings in South Africa for a price consideration of R11.67bn ($637.1m). The assets are located within the Kalahari Manganese Field (KMF) in the Northern Cape province. The transaction includes a 74% share in Ntsimbintle Mining and a 19.99% stake in Jupiter, along with a 100% interest in Ntsimbintle Marketing and Trading, 51% in Mokala and 9% in Hotazel Manganese Mines. The deal could potentially increase to R14.64bn if Blue Falcon, which owns 49% of Mokala Mines, exercises tag along rights. Exxaro's acquisition grants it exposure to four operating mines, including a 60.1% effective ownership in the Tshipi Borwa Mine and marketing rights, a 51% stake in Mokala and a 9% share in Hotazel Manganese Mines. The transaction is subject to regulatory approvals, with an expected completion date in the first quarter of 2026. Exxaro CEO Ben Magara said: 'This transaction puts together two strong BEE [Black Economic Empowerment] companies who are both consistent dividend payers and positions Exxaro as formidable and diversified mining company of reference in South Africa and I am delighted that we can utilise our strong coal resources as a base to prudently accelerate our asset portfolio to include transition minerals and to grow our energy solutions business. '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. 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 acquisition marks a strategic diversification from Exxaro's coal base into a broad minerals and energy solutions business. Exxaro's broader strategy involves investments in renewable energy, exploration of essential transition minerals such as manganese and copper, and the use of innovative technologies. Safika and Ntsimbintle Holdings chairman Saki Macozoma said: '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 licence 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.' Earlier this year, Exxaro Resources announced the resignation of its CEO, Nombasa Tsengwa, just two months after her suspension in connection with a governance investigation. "Exxaro to acquire manganese assets in South Africa for $637m" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
IOL News
14-05-2025
- Business
- IOL News
Exxaro embarks on major manganese acquisition as new CEO refocuses strategy
Under the new deal, Exxaro will take over a portfolio of manganese assets owned by the Saki Macozoma-fronted Ntsimbintle Holdings, as well as those held by OM Holdings. Image: Supplied Tawanda Karombo Eskom coal supplier Exxaro Resources is diversifying its portfolio, sinking R11.6 billion into the acquisition of manganese assets in the Northern Cape in a deal expected to be closed early next year. Exxaro recently appointed Ben Magara as CEO, taking over from Nombasa Tsengwa after a protracted fall-out with the former top executive. Insiders on Tuesday said the company's stalled diversification was among points of disagreement between the company's board and Ndengwa. Magara's appointment appears to have refocused the company on its diversification into manganese. Under the new deal, Exxaro will take over a portfolio of manganese assets owned by the Saki Macozoma-fronted Ntsimbintle Holdings, as well as those held by OM Holdings. 'This acquisition provides Exxaro with a strong entry point into the manganese sector,' said Magara. He explained that manganese had become an essential component in steelmaking and had an additional growing market in the battery and renewable technology supply chains. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ '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,' he added. In cementing the transaction, Exxaro has already entered into binding agreements to acquire shares and claims in the manganese assets held by Ntsimbintle Holdings and OM Holdings. The targeted assets consist of a 74% of Ntsimbintle Mining, a 19.99% stake in Jupiter, 100% of Ntsimbintle Marketing and Trading as well as 51% of Mokala. Additionally, Exxaro has snapped up a 9% interest in Hotazel Manganese Mines. According to Macozoma, chairman of Safika and Ntsimbintle Holdings, the landmark transaction 'is significant to the South African mining' sector. '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,' said Macozoma. He added that the sale of the manganese assets to Exxaro was consistent with Safika and Ntsimbintle's 'long-term plan to continue to simplify and strengthen our portfolio' so as to generate shareholder value.' Exxaro expects that the transaction will close by the end of March next year. The transaction is also still subject to regulatory approvals. Executives at Exxaro said during a media briefing on Tuesday that the assets under the transaction 'are well capitalized' with no immediate need for new capital, except stay in business capital. 'We will be looking to optimise what's on the ground for the benefit of all the joint venture partners, and that's work that we will have to start on completion of this transaction and we look forward to that and use our expertise not only in the operation itself,' said an executive from the company. 'I think we know that there's logistics that we could look to see how we optimize all that and our markets are predominantly the same except China.' Analysts said the acquisition positioned Exxaro 'to capitalize on the rising global demand for manganese, a critical component in steel manufacturing and emerging battery' technologies. Exxaro's revenues for the full year to December firmed up by 5% to R40.7bn, although group earnings before interest, tax, depreciation and amortisation (Ebitda) decreased by 22% to R10.4bn. This meant that headline earnings per share for the period of R30.16 per share fell by 36%. Nonetheless, Exxaro declared a final cash dividend of 866 cents per share,and also resolved to embark on a R1.2bn share repurchase programme. Visit:
Daily Maverick
13-05-2025
- Business
- Daily Maverick
Exxaro's R11.67bn manganese pivot: green transition, black capital or boardroom realignment?
Exxaro Resources' acquisition of Ntsimbintle and OM Holdings' manganese assets is more than a strategic minerals grab; it's a post-coal pivot, a consolidation of black industrial capital and, potentially, a power move following months of executive turbulence. Behind the R11.67-billion headline lies a test case for South Africa's just transition, governance in mining and who controls the future of critical mineral wealth. Ex-post-facto acquisition, or new way forward? Exxaro, once a proudly coal-driven juggernaut, is now betting nearly R12-billion on a mineral pivot. But the timing of its boldest diversification step in a decade raises deeper questions – less about manganese itself, and more about who is really driving the strategy. Just five months ago, Exxaro CEO Dr Nombasa Tsengwa was suspended amid whistle-blower complaints and reported boardroom tension. Her leadership had prioritised transition minerals, copper acquisitions and energy diversification. Now, under newly appointed CEO Ben Magara, the miner has acquired the very assets Tsengwa had reportedly explored – including a controlling interest in Tshipi Borwa. Was this deal long in the making? Almost certainly. But its execution, shortly after a contested leadership change, suggests more than just strategic continuity. It may also reflect a shift in governance, internal alignment and institutional confidence in the next phase of Exxaro's identity. R11.67 billion in minerals – and rising Exxaro has entered into binding agreements to acquire a portfolio of manganese assets from Ntsimbintle Holdings and OM Holdings. These include: 1% effective interest in Tshipi Borwa; 51% of Mokala Manganese; 9% of Hotazel Manganese Mines (Wessels and Mamatwan); 100% of Ntsimbintle Marketing and Trading; and 99% of Jupiter Mines (ASX-listed). The initial price tag is R11.67-billion, but the deal includes a 'locked box' structure – and if Mokala's minority shareholder Blue Falcon exercises its tag-along rights, the total may increase to R14.64-billion. Exxaro has stated that the deal is funded from internal resources, with no anticipated impact on its dividend policy or net cash position. Why manganese? Why now? Manganese is often overshadowed by cobalt, nickel and lithium in energy transition narratives – but its role in both steel production and emerging battery technologies is critical. High-purity manganese is increasingly used in lithium-ion battery cathodes, particularly in markets such as China and India. South Africa holds an estimated 70% of global manganese reserves and about 37% of global production. The Kalahari Manganese Field (KMF), where these mines are located, is one of the richest global manganese belts. With long-life mines and operational offtake agreements in Asia, the deal aligns with Exxaro's stated strategic aim to reposition as a diversified minerals and energy solutions business. This pivot began under Tsengwa's leadership, with moves into renewables (such as the Lephalale Solar Project) and copper (through prior due diligence on assets in Botswana). The manganese deal may be the crown jewel of that vision – even if finalised under a different leadership banner. Black capital makes a rare play Beyond its commercial value, the transaction marks a notable moment in South Africa's mineral economy. It is a transfer of strategic mineral assets from one black-controlled enterprise to another – a rarity in a sector still defined by historic capital imbalances. Ntsimbintle Holdings, led by Saki Macozoma, is one of the country's most successful black-owned mining ventures. Its 74% interest in Ntsimbintle Mining – which owns 50.1% of Tshipi – forms the heart of the transaction. OM Holdings holds the remaining 26%, also being sold to Exxaro. Macozoma described the transaction as 'a landmark for BBBEE' and expressed confidence that Exxaro would be a capable custodian of the assets in a press release marking the proposed purchase. This is not merely an exit, but what Ntsimbintle has called a 'portfolio simplification and reinvestment opportunity' – enabling it to focus on new growth areas while maintaining long-term community benefit structures. Plug-and-play into Asia The manganese operations come with pre-existing offtake agreements into China and India, mirroring Exxaro's existing coal customer base. The integration is likely to be operationally smooth – Exxaro's existing logistics and bulk commodity trading capacity are already geared towards these corridors. Still, manganese is not without volatility. Prices have swung significantly in the past two years, driven by Chinese steel demand and evolving EV battery chemistries. Execution will require careful risk management. A contested Kalahari Strategically, the KMF mines place Exxaro in a mineral corridor long dominated by global majors and niche players. The region also comes with complex stakeholder dynamics – from environmental scrutiny to local beneficiation expectations. This acquisition positions Exxaro as a full-spectrum mining house, with assets in coal, manganese, renewables and energy infrastructure – but also amplifies its exposure to political and regulatory sensitivities. Regulatory approvals remain The transaction remains conditional on: Competition Commission approval; DMRE sign-off under the Mineral and Petroleum Resources Development Act; and Environmental and beneficiation approvals, particularly if brownfield expansions are envisaged. The 'locked box' structure means any financial leakage prior to closing – such as dividends, losses or capital shifts – could result in upward adjustments to the purchase price. While Exxaro's executive has projected stability under new CEO Ben Magara, the lingering absence of clarity around Tsengwa's departure – including conflicting narratives over internal whistle-blowers, governance disputes and legal claims – remains part of the story's subtext. Communities, beneficiation and the just transition A key beneficiary of Ntsimbintle's structure is the John Taolo Gaetsewe Development Trust, which holds 14.47% of the company. Community-based entities, local women-led firms and Northern Cape entrepreneurs are also among its shareholders. Exxaro has pledged to honour commitments around community development, job creation, infrastructure delivery and skills transfer. This aligns with South Africa's broader 'just energy transition' goals – but success will depend on visible outcomes. Expectations are high. In a region often sceptical of extractive promises, execution will matter more than headlines. Among the clear winners are Exxaro – which now gains scale, diversification and a firm foothold in the transition mineral space – and Ntsimbintle Holdings and Safika, which exit on their own terms while unlocking capital for future strategic certain is the rationale behind OM Holdings' quiet withdrawal from South African manganese – no formal explanation has been provided. And then there is Dr Nombasa Tsengwa, whose early efforts to steer Exxaro towards diversification may yet define the company's trajectory, even if she is no longer at the helm to see it through. The real prize Exxaro's manganese acquisition is not just a portfolio expansion. It is a narrative pivot, where ownership, governance and transformation converge. What remains to be seen is whether this deal becomes a flagship for BBBEE industrial strategy, or a case study in how internal politics shape external outcomes. The manganese is real and the power shift may be just as material. DM
