SA coal miner Exxaro Resources has entered manganese mining in the Kalahari desert in a deal worth R11.67bn as it diversifies into “green transition” minerals.
The coal miner has been seeking to diversify into manganese and copper to benefit from surging demand for minerals that are vital in a global transition from polluting fossil fuels to cleaner energy technologies.
Two years ago Transnet made headlines in the Dispatch with an announcement of a major upgrade to its railway line between East London port and Hotazel, the town that forms a hub for the manganese mines.
The boost to the Hotazel-Sishen line would allow for downstream projects to be realised, including a new service to East London, which would unlock an additional 500,000 tonnes a year, then-Transnet Freight Rail chief commercial officer Bonginkosi Mabaso said at the time.
On Tuesday, Ben Magara, who took over as Exxaro CEO in April, said the acquisition provided Exxaro with a “strong entry point into the manganese sector.”
The new deal gives Exxaro exposure to four operating manganese mines, which all have long-term contracts with customers in China and India, where Exxaro sells its coal.
Apart from Exxaro's 100% stake in Ntsimbintle Mining -- which holds a 50.1% interest in Tshipi é Ntle, the operator of Tshipi Borwa Mine -- the deal gives it a 19.99% stake in Jupiter Mines, a 51% stake in Mokala Manganese and a 9% stake in Hotazel Manganese Mines.
In October 2023, when the first trainload of 30,000-tonnes of manganese ore arrived from the Northern Cape started loading to the vessel waiting in the East London port — BBG Leader, bound for India — it was to ululation and excitement, with many expectations of jobs and economic spinoffs to come.
Tshipi é Ntle mine CEO Mashudu Netshipale, vowed: “In a year, we will export anything between 400,000 and 500,000 tonnes of manganese to India and China.”
However, little has been heard of the project in Buffalo City since environmental lawyer Ricky Stone suggested Transnet may have used a loophole in the SA Air Quality Act to avoid having to apply for an atmospheric emission licence that would entail conducting an environmental impact assessment.
Manganese dust is a known health hazard to those exposed to it.
Activists warned of dangerous impacts associated with manganese dust blowing off the railway and road trucks, especially manganism, a Parkinson’s type disease with flu-like symptoms and general loss of muscle and nerve control.
Buffalo City's neighbour Nelson Mandela Bay, has so far carried the brunt of manganese shipping -- and its health consequences.
South Africa is the world's biggest producer of the steelmaking ingredient, with the Kalahari region estimated to contain more than 4.2-billion tonnes of exploitable high-grade manganese ore.
Manganese is also used in lithium-ion ore batteries for electric vehicles. — With Reuters
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