Coal miner Exxaro agrees R11.67 billion deal to buy manganese assets in Northern Cape

JOHANNESBURG - Exxaro Resources said on Tuesday it has reached an agreement to buy manganese mines in the Northern Cape in a deal worth R11.67 billion as it diversifies into green transition minerals.

The South African coal miner entered into a binding agreement to buy shares and claims in manganese assets held by Ntsimbintle Holdings and OM Holdings, it said in a statement.

The coal miner has been seeking to diversify into manganese and copper, as it positions itself to benefit from surging demand for the minerals, vital in the global transition from polluting fossil fuels to cleaner energy technologies.

"This acquisition provides Exxaro with a strong entry point into the manganese sector," Ben Magara, who took over as CEO in April, said in the statement.

South Africa is the world's biggest producer of the steelmaking ingredient. Manganese is also used in lithium-ion ore batteries for electric vehicles.

The deal gives Exxaro exposure to four operating manganese mines in the Northern Cape. The mines have long-term contracts with customers in China and India, where Exxaro sells its coal, it said.

- REUTERS