Diversified natural resources company Exxaro Resources now holds an effective interest in select manganese assets of Ntsimbintle Holdings and OMH.

This entails 100% ownership of Ntsimbintle Mining, which owns 50.1% of the Tshipi Borwa mine; 19.99% of ASX-listed Jupiter Mines, which holds the remaining 49.9% of the Tshipi Borwa mine; 100% of Ntsimbintle Marketing; and 9% of Hotazel.

Exxaro has also acquired various agreements related to the above-mentioned assets to which Ntsimbintle Holdings and/or Safika were a party. 

Ntsimbintle is a broad-based black economic empowerment mining company and associate of Safika Holdings’ subsidiary Safika Resources. 

As announced last month, all the suspensive conditions relating to the first sale transaction and OMH Transaction had been fulfilled and/or waived.

Accordingly, the first sale transaction and OMH transaction have been implemented and closed February 27, for a closing price of R10.6-billion.

The purchase consideration was discharged in cash and the transaction was funded through existing cash resources. 

South Africa’s Kalahari Manganese Field, which hosts up to 80% of global manganese resources, is indicated to position Exxaro at the heart of a mineral critical to steelmaking and emerging battery technologies. The acquired operations are cash-generative, dividend-paying, and supported by established offtake agreements into China and India, expected to ensure immediate shareholder value and long-term growth. 

“We are accelerating the prudent delivery of our strategy and we are pleased with the successful implementation of this transaction. Exxaro becomes a globally significant manganese producer with its interest in Tshipi Borwa mine, the world’s fourth-largest manganese mine in South Africa’s Kalahari Manganese Field, home to approximately 80% of the world’s known manganese resources,” Exxaro CEO Ben Magara says.

“Tshipi is a world-class, long-life asset, favourably positioned on the industry cost curve. The acquisition also includes the marketing entities and equity interest in Hotazel Manganese Mines,” he adds.

Post this transaction, the previously maintained R12-billion to R15-billion cash buffer will no longer be maintained. Moreover, the company recently concluded the refinancing of its R13-billion corporate facilities, Magara informs.

“We are therefore reviewing our capital allocation framework considering the cyclical nature of commodity prices and our defensive and diversified portfolio,” he avers.

“We welcome our Ntsimbintle Mining colleagues and look forward to their contributions to the wider Exxaro group. This transaction has put two big and successful black economic empowerment companies together, showcasing what can be achieved through collaboration.

“Exxaro has the requisite bulk mining, logistics and marketing capabilities and we are looking forward to working with our joint venture partners to maintain stable operations and unlock opportunities together, for the benefit of all our stakeholders,” Magara highlights.

“This transaction is far more than a transfer of assets - it represents the transfer of strategic mineral resources between two black-controlled enterprises that have consistently delivered dividends and contributed meaningfully to South Africa’s economy. It reinforces the South African investment narrative by ensuring that ownership of critical mineral assets remains firmly in domestic hands.

"At the same time, it positions Exxaro as a full-spectrum mining house, with a diversified portfolio spanning coal, manganese, renewable energy infrastructure, and energy solutions. Importantly, local communities in the Northern Cape stand to benefit from Exxaro’s proven track record in community investment and stakeholder engagement, ensuring that the impact of this deal extends well beyond the balance sheet," says Ntsimbintle Holdings and Tshipi chairperson Saki Macozoma. 

“Safika is proud of the intellectual and technical rigour that underpins this transaction. Ntsimbintle’s deal team was instrumental in structuring and negotiating a complex, multi-jurisdictional transaction, and their work reflects the enormous amount of highly skilled, intensive research undertaken by black-owned businesses in bringing it to life. The team has crafted a transaction that advances black economic empowerment while strengthening the broader South African economy. It is not only commercially sound, but also nationally significant," says Safika CE Moss Ngoasheng.