Eskom coal supplier Exxaro invests billions in SA's biggest manganese mine as it looks to energy transition
Exxaro Resources has announced the finalisation of a deal to buy a stake in a portfolio of manganese assets held by Ntsimbintle Holdings and OM Holdings.
Manganese mining - Exxaro, Facebook
The Money Show's Stephen Grootes is joined by Moss Ngoasheng, CEO of Safika Holdings, which has a stake in the deal.
Exxaro Resources has announced agreement on their offer to buy manganese assets in the Northern Cape, which include Tshipi Borwa - the largest manganese mine by export volume in South Africa and one of the largest in the world.
The R11.7 billion deal was concluded with OM Holdings and Ntsimbintle Holdings, which holds 50.1% of the Tshipi Borwa mine.
In a statement, Exxaro says its Sustainable Growth and Impact strategy aims to transform it into a diversified company, to include energy transitioning metals and renewable energy.
Manganese is considered a key element in renewable energy technologies.
Stephen Grootes interviews Moss Ngoasheng, CEO of Safika Holdings, which also has a stake in the deal.
It is the right moment now to realise value for its shareholders while ensuring the asset remains in good hands, Ngoasheng says.
"We've been looking at how to realise value in this asset for a while but felt earlier approaches didn't offer enough to actually exit the asset... Then, 18 months ago we got other approaches, and at the end of that process we chose Exxaro as the preferred bidder."
Moss Ngoasheng, CEO - Safika Holdings
The choice of Exxaro hinges on the miner's long history in the industry, Ngoasheng says.
"One of the key considerations was to enter into a relationship with a partner who's got a long, deep knowledge of the mining assets and the mining industry, particularly of a bulk commodity, and Exxaro has demonstrated that."
Moss Ngoasheng, CEO - Safika Holdings
"And with the origin of Exxaro and the origin of Safika as well as empowerment parties, we felt that it's the right time to do a big champion deal that will rally and continue to develop the local mining sector as Exxaro intends to."
Moss Ngoasheng, CEO - Safika Holdings
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