Exxaro Resources Ltd., a leading coal producer in South Africa, is in discussions to acquire the Tshipi Borwa mine, one of the country’s largest manganese operations, as part of its strategy to diversify its portfolio, according to sources familiar with the matter.
The Johannesburg-based company has engaged with the owner of the Tshipi Borwa mine, which is operated by Tshipi e Ntle Manganese Mining (Pty) Ltd., a joint venture between Australia-listed Jupiter Mines Ltd. and privately held Ntsimbintle Mining Ltd. However, there is no certainty that these talks will lead to a deal, with Tshipi’s owners potentially exploring other options or buyers, the sources added.
Exxaro, known for its dominance in the coal sector, has been actively seeking to expand into other minerals. While the company missed out on acquiring a copper project in Botswana for nearly $2 billion last year, CEO Nombasa Tsengwa, who was suspended earlier this month, expressed in October that the company is particularly focused on manganese, which is widely used in steel production.
Exxaro did not provide details on the discussions, with a spokesperson confirming only that the company is actively engaging with potential targets, in line with its broader diversification strategy. Tshipi e Ntle, along with Jupiter Mines and Ntsimbintle Mining, did not respond to requests for comment on the talks.
Jupiter Mines, which holds a 49.9% stake in Tshipi, has a current market value of A$265 million ($161 million), while Ntsimbintle controls the remaining stake.
South Africa is a global leader in manganese production, primarily used in steel manufacturing, and is home to some of the largest manganese mines, including those owned by South32 Ltd., Anglo American Plc, African Rainbow Minerals Ltd., and Assore Group. The Tshipi Borwa mine was the second-largest producer of manganese ore in South Africa in 2022, with output of 3.3 million tons, according to a recent Jupiter presentation.
Manganese demand is expected to remain strong, particularly for use in the steel industry, which accounts for more than 90% of its consumption. However, with the rise of electric vehicles, batteries are projected to increase their share of manganese consumption, reaching over 7% by 2040, according to Project Blue, a consultancy based in Cape Town.
Exxaro’s ongoing transition away from a coal-centric business was reaffirmed on December 4, following the announcement of Tsengwa’s suspension. The company remains committed to a “measured and responsible transition” toward a more diversified mining portfolio.
