Exxaro embarks on major manganese acquisition as new CEO takes the reins

Exxaro is sinking R11.6 billion into the acquisition of manganese assets in the Northern Cape

- TAWANDA KAROMBO

ESKOM coal supplier Exxaro Resources is diversifying its portfolio, sinking R11.6 billion into the acquisition of manganese assets in the Northern Cape in a deal expected to be closed early next year.

Exxaro recently appointed Ben Magara as CEO, taking over from Nombasa Tsengwa after a protracted fall-out with the former top executive.

Insiders on Tuesday said the company's stalled diversification was among points of disagreement between the company's board and Ndengwa. Magara's appointment appears to have refocused the company on its diversification into manganese.

Under the new deal, Exxaro will take over a portfolio of manganese assets owned by the Saki Macozoma-fronted Ntsimbintle Holdings, as well as those held by OM Holdings. "This acquisition provides Exxaro with a strong entry point into the manganese sector," said Magara. He explained that manganese had become an essential component in steelmaking and had an additional growing market in the battery and renewable technology supply chains.