JOHANNESBURG (Reuters) -Exxaro Resources said on Tuesday it has reached an agreement to buy manganese mines in South Africa in a deal worth 11.67 billion rand as it diversifies into green transition minerals.
The South African coal miner entered into a binding agreement to buy shares and claims in manganese assets held by Ntsimbintle Holdings and OM Holdings, it said in a statement.
The coal miner has been seeking to diversify into manganese and copper, as it positions to benefit from surging demand for the minerals, vital in the global transition from polluting fossil fuels to cleaner energy technologies.
“This acquisition provides Exxaro with a strong entry point into the manganese sector,” Ben Magara, who took over as CEO in April, it said in the statement.
South Africa is the world’s biggest producer of the steelmaking ingredient. Manganese is also used in lithium-ion ore batteries for electric vehicles.
The deal gives Exxaro exposure to four operating manganese mines in South Africa’s Northern Cape province. The mines have long-term contracts with customers in China and India where Exxaro sells its coal, it said.
(Reporting by Felix Njini in Johannesburg, Editing by Louise Heavens)
