Transnet and Hotazel Manganese Mines sign 10-year deal

Transnet and Hotazel Manganese Mines (HMM), a joint venture operated by a wholly owned subsidiary of South32, on Thursday officially signed a 10-year contract under the third phase of the Manganese Export Capacity Allocation (MECA3) framework.

The contract cements long-term rail and port manganese export capacity for 10 years, strengthening the collaborative partnership between the two organisations and providing operational certainty for one of South Africa’s most established manganese producers.

HMM, located in the Kalahari Basin of the Northern Cape, has been a significant contributor to the global manganese supply chain for over four decades. HMM consists of two manganese mines located in the Kalahari Manganese Field in the Northern Cape province of South Africa, namely Wessels and Mamatwan mines.

Transnet expalined that HMM and Transnet share a longstanding relationship stretching back to the 1970s, making rail an integral part of HMM’s logistics and export operations. Over the years, this partnership has evolved in support of growing volumes, infrastructure expansion, and South Africa’s broader export agenda.

The MECA3 agreement builds on this established relationship and introduces a demand-led, multi-year capacity allocation model designed to enable improved planning, efficiency, and investment confidence across the manganese value chain, exporting manganese through critical channels such as Saldahna and Ngqura to HMM’s global markets.

Transnet Group CEO, Michelle Phillips said, “This agreement is a testament to the efficiency and reliability of our services. It also reflects our commitment to the mining sector, underpinned by reliable and predictable access to rail capacity for our manganese exporters.

“By securing dedicated rail and port capacity, the agreement provides HMM with the operational certainty needed to support its mining and export activities, which contribute to local jobs and the country’s economic prosperity.”

South32 HMM vice president Operations Barry Bezuidenhout said, “Securing long-term rail and port export capacity is vital for HMM to access international markets for its product.

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