Exxaro announced the acquisition of Ntsimbintle Mining, purchasing shares from Ntsimbintle Holdings (74%) and OM Holdings (26%). Subject to regulatory approvals, the transaction is expected to close in 2026 and will mark Exxaro’s formal entry into the manganese sector.

Through this deal, Exxaro will secure interests in the Tshipi, Mokala, and Hotazel manganese mines, as well as the early-stage Khwara project. The acquisition transfers more than 1.7Mtpy of manganese ore capacity to Exxaro, excluding any upside from Jupiter Mines’ plans to expand Tshipi’s output to 5.8Mtpy by 2028. Exxaro noted that the transaction supports its strategy to diversify beyond coal and into minerals critical for steelmaking and the energy transition.

South Africa’s manganese sector is increasingly characterised by declining open-pit grades and a growing shift toward underground mining to access deeper, higher-grade orebodies. The inclusion of Hotazel, already an underground operation, offers Exxaro long-term operational capacity in a market where surface-accessible, high-grade resources are becoming less common.

Manganese ore exports from South Africa have enjoyed more than two decades of growth, reaching record levels of 23Mt in 2024, with steel production capacity in China ramping up to become the largest consumer of manganese globally. While South Africa used to lead the alloying market, domestic energy issues have seen the market increasingly focus on exporting ores to smelters in Asia. The declining competitiveness of South African smelters has resulted in several smelters being placed on care and maintenance, with Assmang’s Cato Ridge smelter being the most recent.

The outlook for manganese is split, with the growth market in China expected to have matured and begun to consolidate, as crude steel production is forecast to plateau and decline, offering smaller volume upsides from more niche alloy steels. Consequently, the South African manganese industry will pay close attention to new crude steel growth poles such as India, where limited and often higher cost resources could offer a competitive market for South African ores.