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Exxaro Resources, formerly led by South African multimillionaire Sipho Nkosi, has agreed to spend $615 million to take control of several manganese assets in the Northern Cape, a move that reshapes one of the country’s most important mining regions.
The deal brings together mines that have operated side by side for years in the Kalahari Manganese Field but under different owners. By consolidating them, Exxaro is betting it can cut costs, run the assets more efficiently and compete better in global markets.
At the heart of the transaction is Exxaro’s purchase of 100 percent of Ntsimbintle Mining and a 19.99 percent stake in Jupiter Mines. Through those holdings, Exxaro gains effective control of the Tshipi Borwa mine, one of South Africa’s largest manganese producers.
The company is also buying a controlling stake in Mokala Mines, subject to conditions, and a smaller interest in Hotazel Manganese Mines. Together, the assets give Exxaro a much larger footprint in a region that holds some of the world’s richest manganese deposits.
Until now, the area has been marked by fragmented ownership. Mines worked neighbouring ore bodies, often with duplicated infrastructure and different production plans. Industry players have long argued that this setup left value on the table.
Exxaro believes scale changes the equation. Coordinated planning across adjacent deposits should reduce waste and improve recovery rates. Larger volumes also make it easier to meet the needs of big international customers.
The deal also hands Exxaro full ownership of Ntsimbintle Marketing, which controls manganese sales. That matters as demand shifts. Steelmaking still dominates manganese use, but batteries are becoming a growing market. Different customers want different grades, and controlling sales allows Exxaro to push material where prices are strongest.
South Africa already has an edge in manganese exports, with rail links and ports at Saldanha Bay and Richards Bay. Exxaro’s experience in moving bulk commodities should help it ship product more reliably than smaller operators.
The structure of the deal is just as important as its size. Rather than buying everything outright, Exxaro used a layered approach to secure control while limiting upfront cash. The core parts of the transaction closed in late January. The Mokala deal is still subject to final conditions, with a deadline later this month.
There is also upside built in. If minority shareholders in Jupiter Mines decide to sell, Exxaro’s total investment could rise to $770 million. That gives the company room to increase its stake if the assets perform well.
The manganese move also signals a broader shift. Exxaro has long been associated with coal, but manganese offers a different future. It remains essential for steel and is becoming more important in battery technology.
