Exxaro eyes Tshipi Borwa mine in South Africa
Exxaro Resources Ltd., a prominent South African coal producer, is in discussions to acquire the Tshipi Borwa manganese mine, one of the largest in the country. The potential deal is part of Exxaro’s strategy to diversify its operations beyond coal.
The mine is owned by Tshipi e Ntle Manganese Mining (Pty) Ltd., a joint venture between Jupiter Mines Ltd. (49.9%) and Ntsimbintle Mining Ltd. (50.1%). The talks are still in preliminary stages, with no assurance of a finalized agreement.
Tshipi Borwa mine
Tshipi Borwa, located in South Africa’s Northern Cape province, produced 3.3 million tons of ore in 2022, making it the nation’s second-largest manganese producer. South Africa is the leading exporter of mid- to high-grade manganese ores, a key component in steelmaking and an increasingly significant material in battery technologies, particularly for electric vehicles. The latter application is projected to see its manganese demand triple by 2040.
This initiative aligns with Exxaro’s ongoing efforts to diversify its portfolio into critical minerals like manganese. However, these efforts have faced setbacks, including missing out on a significant copper project in Botswana last year. Despite the challenges, Exxaro’s spokesperson confirmed the company’s active pursuit of acquisitions but declined to comment on specific deals.
The market value of Jupiter Mines, whose only asset is the Tshipi stake, is currently A$265 million (US$161 million). With Exxaro’s CEO Nombasa Tsengwa recently suspended, the company has reiterated its commitment to transitioning from a coal-centric business model to a diversified resource portfolio in a “measured and responsible” manner.
