By Rene Vollgraaff and Paul Burkhardt.
Exxaro Resources, South Africa’s biggest coal miner, has agreed to acquire the nation’s largest manganese mines for about R11.67 billion ($640 million).
The assets include the Tshipi Borwa Mine, as well as the Mokala Mine, in Kalahari Manganese Field, the company said in a statement. The unadjusted price payable in respect of the sale equity is R11.67 billion cash, according to the statement.
Exxaro has been trying to add other minerals to its portfolio, but lost out on a copper project in Botswana that sold for almost $2 billion. The company told Bloomberg in October that it was prioritising manganese, which is primarily used in steelmaking.
South Africa is the world’s largest exporter of mid- to high-grade manganese ores. South32, Anglo American Plc, African Rainbow Minerals and Assore are shareholders in other major mines that are concentrated in the Northern Cape province.