Exxaro Resources has entered discussions with the owners of one of South Africa’s largest manganese mines, Tshipi Borwa, as part of its efforts to diversify away from its coal-focused business.
The Johannesburg-based company has been negotiating the potential acquisition of the mine from Tshipi e Ntle Manganese Mining, a joint venture between Australia-listed Jupiter Mines Ltd. and Ntsimbintle Mining, a privately held entity.
Sources familiar with the matter, who wished to remain anonymous due to the confidentiality of the talks, noted that while discussions are ongoing, there is no certainty that a deal will materialize. Tshipi’s owners may still explore other options or potential buyers for the asset.
Exxaro, one of South Africa’s largest coal producers, has been seeking to expand its portfolio by adding more minerals.
In 2023, the company missed out on a $2 billion copper project in Botswana. However, Exxaro’s CEO, Nombasa Tsengwa, who was suspended earlier this month, had stated in October that manganese, a key ingredient in steel production, is a priority for the company moving forward.
While Exxaro declined to comment specifically on the ongoing talks, a spokesperson confirmed the company is actively engaging with potential targets in the market.
Tshipi e Ntle, along with its partners Jupiter Mines and Ntsimbintle Mining, did not respond to requests for comment.
In 2022, Tshipi’s output reached 3.3 million tons of manganese ore, making it South Africa’s second-largest producer.
The country is the world’s leading exporter of mid- to high-grade manganese ores, with companies such as South32, Anglo American, African Rainbow Minerals, and Assore Group also involved in the sector.
As demand for manganese continues to grow, particularly with the rising use of manganese in electric vehicle batteries, Exxaro’s potential acquisition of the Tshipi Borwa mine could position the company strategically in the evolving global market.
