Deal secures effective stake in Tshipi Borwa in the Kalahari Manganese Field, reshaping capital allocation.
Exxaro Resources has officially cemented its transition into a globally significant manganese producer following the successful conclusion of its R10.6 billion cash acquisition of select assets from Ntsimbintle Holdings and OMH.
The deal, implemented on 2 March 2026, was funded entirely through Exxaro’s available cash reserves and represents a major acceleration of the group’s strategy to diversify into energy transition metals.
ALSO READ: Carolina community accuses Exxaro mine of broken promises
The centrepiece of this landmark transaction is Exxaro’s new effective equity interest in the Tshipi Borwa Mine, the world’s fourth-largest manganese mine.
Situated in South Africa’s Kalahari Manganese Field, an area containing roughly 80% of the planet’s known manganese resources, Tshipi is a “world-class, long-life asset” favourably positioned on the industry cost curve.
Through its wholly-owned subsidiary, Exxaro now holds 100% of Ntsimbintle Mining (which owns 50.1% of Tshipi Borwa), a 19.99% stake in Jupiter, 100% of Ntsimbintle Marketing, and a 9% interest in Hotazel Manganese Mines.
While most elements of the deal closed on 27 February 2026, the Mokala Sale Transaction remains pending, with a long-stop date set for 27 February 2027.
ALSO READ: Minerals Council South Africa flags policy issues with mining amendment bill
Strategic rationale and leadership vision
Exxaro CEO Ben Magara highlighted the strategic importance of the move, stating: “Exxaro becomes a globally significant manganese producer with its interest in Tshipi Borwa mine… We are accelerating the prudent delivery of our strategy, and we are pleased with the successful implementation of this transaction.”
This scale of investment has immediate implications for Exxaro’s balance sheet. The company confirmed that it will no longer maintain its previously held cash buffer of R12 billion to R15 billion.
Instead, management is reviewing the group’s capital allocation framework to better reflect its defensive, diversified portfolio and the cyclical nature of commodity prices, supported by the recent refinancing of Exxaro’s R13 billion corporate facilities.
ALSO READ: How the JSE All Share changed over three decades
A landmark for black economic empowerment
The transaction is being hailed as a showcase for high-level collaboration between two of South Africa’s most successful black-empowered businesses.
Saki Macozoma, chair of Ntsimbintle Holdings and Tshipi, expressed pride in the conclusion of the deal: “Two leading black economic empowerment companies have worked together to create an opportunity where Exxaro becomes a natural resources champion and will be further strengthened through the acquisition of Ntsimbintle Holdings’s world-class manganese assets”.
Macozoma added that the move “brings meaningful benefit to Ntsimbintle’s shareholders, stakeholders, and to South Africa as a whole”, expressing confidence that Exxaro shares a commitment to “transformation, sustainable growth, and long-term investment in South Africa’s mining sector”.
This article was republished from Moneyweb. Read the original here.
Support Local Journalism
Add The Citizen as a Preferred Source on Google and follow us on Google News to see more of our trusted reporting in Google News and Top Stories.