1.4 C
Belgrade
Supported byspot_img
spot_img

Exxaro Resources eyes manganese expansion: Charting a new path in South Africa’s mining sector

Member of Europium Groupspot_img
Supported byspot_img

Exxaro Resources, a leading coal producer in South Africa, is shifting its focus toward manganese mining to diversify its operations. CEO Nombasa Tsengwa has emphasized the importance of manganese, particularly as South Africa stands as the world’s largest exporter of high-grade manganese ores, primarily used in steelmaking.

Strategic shift to manganese

After missing out on a copper mine in Botswana, Exxaro is prioritizing manganese acquisitions and exploration. The company is interested in purchasing “a very good asset or two” in this sector, as it sees potential for growth and believes a strong South African player is needed in manganese mining. Current joint ventures in the manganese sector include major companies like South32, Anglo American, and African Rainbow Minerals, predominantly located in the Northern Cape.

Supported by

Market insights

According to Tanisha Schultz, a senior research analyst at Project Blue, the steel industry constitutes 93% of manganese demand, with expectations that battery production (including for electric vehicles) will increase its share to over 7% by 2040. This growing demand for manganese in batteries aligns with Exxaro’s strategic interests in expanding beyond traditional coal and steel markets.

Diversification plans

Exxaro has a history of diversification, having previously ventured into clean energy projects such as wind farms. Although the company remains interested in copper, especially given the rising demand from sectors like electric vehicles and renewable energy, Tsengwa noted the challenges of acquiring mines independently due to high costs. Instead, Exxaro is looking for partnerships to develop copper assets, particularly in regions like Botswana, the Democratic Republic of Congo, and Zambia.

Coal supply and logistics challenges

As a major supplier of coal to South Africa’s state-owned utility, Eskom, Exxaro sold nearly 41 million tons of coal last year, with 13% exported. However, logistical challenges, particularly related to the performance of Transnet SOC Ltd, South Africa’s rail and freight operator, are impacting the company’s ability to increase exports significantly.

Conclusion

Exxaro Resources is positioning itself for growth in the manganese sector while maintaining its coal operations. By pursuing strategic acquisitions and exploring new markets, Exxaro aims to solidify its presence in critical minerals as it adapts to changing industry dynamics and demand. This diversification strategy reflects the company’s commitment to becoming a more sustainable and multifaceted player in the mining industry.

Supported byElevatePR Digital

Related News

China launches $5 billion mining initiative in Zambia to support copper production growth

China has officially launched the Chinese Mining Enterprise Association in Zambia (CMEAZ), a major initiative aimed at investing $5 billion into Zambia's mining sector...

Peak Minerals to acquire majority stake in Suriname’s Tapanahony gold project

Australian exploration and development company Peak Minerals has entered into a binding letter of intent to acquire a significant interest in the Tapanahony gold...

PT Vale and GEM Co. forge $1.42 billion nickel processing deal in Indonesia

PT Vale and Chinese battery metals producer GEM Co. have signed a project investment cooperation framework agreement to build a high-pressure acid leach (HPAL)...

India must strengthen domestic critical mineral supply to reduce import dependence, report warns

India must prioritize investments in its domestic critical mineral sector to reduce its heavy reliance on imports of cobalt, lithium and nickel, according to...
Supported by
Supported by
Supported by
error: Content is protected !!