[Ferro-Alloys.com]  South African (SA) miner Exxaro Resources is considering boosting shareholder returns once it completes a deal announced in May to buy manganese assets.

It will no longer require a big cash buffer to fund acquisitions, its Chief Executive Officer (CEO) said on Thursday.

Its shares jumped 9% after the diversified resource company, which seeks to add critical minerals such as manganese to its coal, iron ore and renewable energy portfolio, also reported a 13% increase in half-year profit thanks to higher coal income.

The company said on May 13 it had reached an agreement to acquire manganese mines held by Ntsimbintle Holdings and OM Holdings in SA as part of its strategy to diversify away from coal into minerals vital for the global shift to cleaner energy technologies.

CEO Ben Magara said the final transaction price is expected to range between $507 million and $825 million, depending on the extent to which minority shareholders exercise their pre?emptive and tag?along rights.

Following the manganese deal, he said Exxaro would no longer require a $680 million to $850 million cash buffer it had maintained to fund acquisitions.

• [Editor:tianyawei]