Exxaro Buys Major Manganese Mine

This acquisition marks a significant step in Exxaro's strategy to diversify beyond coal and into minerals essential for a low-carbon future. The company has a stated goal of becoming carbon-neutral by 2050 and has been actively investing in renewable energy through its subsidiary, Cennergi. This pivot to manganese aligns with Exxaro's aim to build a portfolio of "future-facing minerals." The deal is also a landmark for Black Economic Empowerment (BEE) in South Africa, uniting two major BEE companies. Ntsimbintle Holdings was established in 2003 by nine Black South African groups to pursue opportunities in the manganese sector. Its shareholders include community and women's empowerment groups, with the John Taolo Gaetsewe Developmental Trust being the second-largest shareholder, focused on uplifting communities in the Northern Cape where the mine is located. The centerpiece of the acquisition is the Tshipi Borwa mine, one of the five largest manganese ore exporters globally. The open-pit mine produces an average of 3.4 million tonnes of manganese ore annually and has plans to expand its capacity. In its fiscal year ending in February 2023, the mine sold 3.48 million tonnes of manganese ore. The acquisition gives Exxaro a significant foothold in the Kalahari Manganese Field, which holds an estimated 75-80% of the world's known manganese resources. This region is pivotal not just for steel, but for the rapidly growing battery market. Demand for high-purity manganese sulfate (HPMSM) for EV batteries is projected to surge, with some analysts forecasting an eight-fold increase this decade. This growth is driven by the adoption of manganese-rich battery chemistries, such as lithium-manganese-iron-phosphate (LMFP) and lithium-manganese-nickel-oxide (LMNO), which can offer lower costs and improved safety.