Exxaro, a leading coal producer in South Africa, has traditionally centered its operations around coal. However, in recent years, the company has pursued a diversification strategy targeting minerals critical to the global energy transition. 

On May 13, 2025, Exxaro announced the acquisition of Ntsimbintle Mining, a manganese mining company in South Africa, for 11.67 billion rand (approximately $636 million). This acquisition accelerates Exxaro’s shift towards critical minerals, reducing its reliance on coal. 

Exxaro has acquired controlling stakes in several manganese mining projects, including a 60.1% share in the Tshipi Borwa mine. The company also holds 51% of the Mokala mine and 9% of the Hotazel mine. The deal, still awaiting regulatory approval, is expected to close by the first quarter of 2026.

“This acquisition provides Exxaro with a strong entry point into the manganese sector. Manganese is essential to steelmaking and has a growing market in the battery and renewable technology supply chains,”said Ben Magara, Exxaro’s CEO.

For years, Exxaro has sought to expand beyond coal into minerals critical to the energy transition. This move comes as demand for coal is forecast to stagnate by 2027, following record consumption of 8.77 billion tonnes in 2024, according to the International Energy Agency (IEA).

In contrast, the global critical minerals market is poised for strong growth. The IEA projects this sector will reach a value of $770 billion by 2040, up from $325 billion in 2024. After acquiring Ntsimbintle Mining, Exxaro plans to continue diversifying by investing in other metals such as copper, nickel, and graphite.

Exxaro previously tried to add copper to its portfolio through a planned takeover of Botswana’s Khoemacau mine. That effort failed when Chinese company MGG acquired the asset instead.

This article was initially published in French by Aurel Sèdjro Houenou  

Edited in English by Ange Jason Quenum