Exxaro Resources is set to buy a portfolio of manganese assets from an entity led by Saki Macozoma in a landmark deal worth nearly R12bn that would propel the coal miner into the manganese sector on a big scale.
The agreement, announced on Tuesday, will give Exxaro controlling stakes in several major manganese mines in the Northern Cape. The deal involves Ntsimbintle Holdings and OMH Mauritius, a unit of Australia’s OM Holdings.
It comes after about a year of negotiations, which, Macozoma told reporters in a call, went surprisingly smoothly, with an indicative offer having been on the table as early as September last year despite the intricate nature of the transaction.
“The discussion with them started but then stopped because what they were offering was not acceptable to us. And then they came back about a year ago, or maybe a little less than that, and they demonstrated that they were serious because this thing has been ongoing in the past two years,” said Macozoma.
If it secures all regulatory approvals, the transaction validates Macosoma’s bet more than two decades ago that manganese would prove a highly valuable resource beyond the steel and construction sectors.
It is also a big payday for him as his company, Safika Holdings, owns about 40% of Ntsimbintle Holdings.
The deal gives Exxaro a strong foothold in the manganese sector, aligning with its stated strategy to diversify beyond coal to demonstrate its commitment to boosting its green credentials.
SA is the world’s biggest producer of the mineral, which is increasingly used in renewable energy infrastructure and electric vehicle batteries. The acquired mines are located on the rich Kalahari Manganese Field (KMF).
The R11.7bn deal would be funded from Exxaro’s cash reserves — a R15bn war chest bolstered by high coal revenues in recent years — and undrawn bank facilities.
Hotazel
The price could rise to as much as R14.6bn if minority partners exercise their rights to sell extra stakes, or drop as low as R9bn if some existing shareholders, such as Glencore’s Blue Falcon in Mokala and Samancor in Hotazel, buy additional stakes before Exxaro completes the deal.
The transaction involves Exxaro acquiring a 100% stake in Ntsimbintle Mining, which holds a 50.1% interest in Tshipi é Ntle Manganese Mining, the operator of the Tshipi Borwa Mine. Exxaro will also acquire a 19.99% stake in Jupiter Mines, a 51% stake in Mokala Manganese and a 9% stake in Hotazel Manganese Mines.
All mines are located within the KMF near Hotazel in the John Taolo Gaetsewe District Municipality.
The region hosts the world’s largest known land-based manganese deposit, estimated to contain more than 4.2-billion tonnes of exploitable high-grade manganese ore, making it a critical global supply hub.
Exxaro aims to leverage its expertise in bulk commodities and open-pit mining to drive growth in the manganese sector. Manganese is a key ingredient in steelmaking and is emerging as an essential component in the green economy.
The acquisition is subject to various conditions, including regulatory approvals, waiver of pre-emptive rights and execution of offtake agreements. Exxaro said it expected the transaction to close in early 2026.
Update: May 13 2025
This story has been updated with new information.
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