Sydney, Australia – South32, the diversified Australian mining company, has expressed interest in acquiring Anglo American’s share of their jointly owned manganese operations if they become available at the right price, CEO Graham Kerr announced on Thursday.
Anglo American is currently the subject of a takeover offer by BHP Group, the world’s largest listed miner, which previously owned these manganese assets before spinning them off during the 2015 demerger that created South32.
In an interview with Reuters, Kerr was asked if South32 would be interested in acquiring Anglo’s share of the manganese business.
He responded, “At the right price, absolutely. We know them better than anyone else.” He did not specify what that price might be.
South32 is the world’s largest producer of manganese, a key steel-hardening additive. The company operates its GEMCO mines in Australia’s Northern Territory and in South Africa’s Kalahari Basin.
Kerr, who recently returned from the United States where South32 is developing its Taylor zinc-lead-silver project, stated that the company has approximately $5 billion to invest as it seeks to expand its portfolio with additional assets.
“In a perfect world, we would like to have another operation in copper and zinc, and another shovel-ready project,” Kerr said. He noted that the company is open to increasing its exposure in Southern Africa.
Kerr explained that investors are beginning to recognize that miners need to acquire rather than build to grow.
The recent rise in base metals prices is helping to reshape this perspective. “When you see the short-term bump in prices, it allows them [investors] to envision a long-term bump,” he said.
According to Kerr, miners must become more aggressive in securing new projects to meet the growing demand for energy transition metals, such as copper. Investors and mining CEOs echoed this sentiment on Wednesday.
South32 has been very active in buying and selling assets, nearly doubling its exposure to base metals over the past nine years.
In February, the company agreed to sell its Illawarra metallurgical coal business to a consortium led by an Indonesian-owned company for $1.65 billion.
This sale, expected to finalize in the first half of the next financial year, marks South32’s exit from coal as it focuses on expanding in copper and zinc.
Kerr noted that the company’s shift away from fossil fuels has attracted interest from new shareholders. “We certainly have seen more interest from European funds and even Australian super funds,” he added.
