South African coal giant seals R11 bilion deal

Exxaro Resources, South Africa’s biggest coal miner, has agreed to acquire the nation’s largest manganese mines for about R11.67 billion.

The company said in a statement that the assets include the Tshipi Borwa Mine and the Mokala Mine in the Kalahari Manganese Field. The unadjusted price payable with respect to the sale equity is R11.67 billion in cash, according to the statement. 

Exxaro has been trying to add other minerals to its portfolio, but lost out on a copper project in Botswana that sold for almost $2 billion.

The company told Bloomberg in October that it was prioritising manganese, which is primarily used in steelmaking.

South Africa is the world’s largest exporter of mid- to high-grade manganese ores. South32, Anglo American, African Rainbow Minerals and Assore are shareholders in other major mines that are concentrated in the Northern Cape province.