[Ferro-Alloys.com]South African coal miner Exxaro Resource has struck a 11.67 billion rand ($640 million) deal to acquire controlling stakes in two key manganese mines marking a major step in its shift toward critical minerals.

The move, announced Tuesday, gives Exxaro majority ownership of the Tshipi Borwa and Mokala mines in South Africa’s Kalahari Manganese Field —home to the world’s largest land-based manganese deposit, with over 4.2 billion tonnes of exploitable high-grade ore. Exxaro will hold 60.1% of Tshipi and 51% of Mokala.

Tshipi, the country’s largest manganese mine and top ore exporter, has the capacity to produce up to 3.5 million tonnes of manganese ore annually. Mokala can produce as much as 1.5 million tonnes per year and is currently operated by a Glencore (LON: GLEN) affiliate, which owns the remaining 49% stake. Glencore holds various rights, including the option to sell its share to Exxaro. The final transaction value could reach up to 14.6 billion rand ($740 million).

The deal, made with Ntsimbintle Holdings and OM Holdings, gives Exxaro a strategic foothold in manganese—used mainly in steelmaking and increasingly in lithium-ion batteries for electric vehicles. Both mines have long-term contracts with customers in China and India, where Exxaro already sells coal.

Ntsimbintle Holdings, a key player in the deal, is the majority shareholder in Tshipi and has other mining and trading interests included in the transaction.

New chief executive officer Ben Magara, who took the helm in April, said the acquisition aligns with Exxaro’s push into “future-facing minerals” while reaffirming its commitment to coal.

“Coal remains a priority for us and vital to South Africa’s economy and energy needs,”  Magara said, adding that the company expects the acquisition to close by early 2026.

Exxaro has been expanding beyond coal over the past two years, with moves into iron ore and renewable energy. It has also targeted copper, but it lost a bid for Botswana’s Khoemacau mine to Chinese miner MMG Ltd.

South Africa, Gabon and Australia account for more than two-thirds of the world’s manganese production.

• [Editor:tianyawei]