State-owned Transnet and Hotazel Manganese Mines (HMM), a joint venture operated by a wholly-owned subsidiary of South32, have signed a ten-year contract under the third phase of the Manganese Export Capacity Allocation (MECA3) framework.

The contract cements long-term rail and port manganese export capacity for ten years, expected to strengthen the collaborative partnership between the two organisations and provides operational certainty for one of the country’s established manganese producers.

HMM, located in the Kalahari basin of the Northern Cape, has contributed to the global manganese supply chain for over four decades. Its comprises two manganese mines – the Wessels and Mamatwan mines.

HMM and Transnet share a longstanding relationship stretching back to the 1970s, making rail an integral part of HMM’s logistics and export operations, Transnet highlights in a statement.

Over the years, this partnership has evolved in support of growing volumes, infrastructure expansion and South Africa’s broader export agenda, the entity adds.

The MECA3 agreement builds on this established relationship and introduces a demand-led, multi-year-capacity allocation model designed to enable improved planning, efficiency and investment confidence across the manganese value chain, exporting manganese through critical channels such as Saldanha Bay and Ngqura to HMM’s global markets.

“This agreement is a testament to the efficiency and reliability of our services. It also reflects our commitment to the mining sector, underpinned by reliable and predictable access to rail capacity for our manganese exporters.

“By securing dedicated rail and port capacity, the agreement provides HMM with the operational certainty needed to support its mining and export activities, which contributes to local jobs and the country’s economic prosperity,” says Transnet group CE Michelle Phillips.

“Securing long-term rail and port export capacity is vital for HMM to access international markets for its product. The signing of this agreement continues our position as a leading global supplier of manganese as well as a major local employer in South Africa’s Northern Cape.

“We look forward to continuing our long-standing mutually beneficial relationship with Transnet and working together to identify opportunities to grow rail logistics capacity in South Africa,” says South32 HMM operations VP Barry Bezuidenhout.