Johannesburg – South African businessman Saki Macozoma has exited the manganese business after Exxaro Resources completed its acquisition of Ntsimbintle Holdings’ manganese assets in a deal worth more than R11 billion.
According to Billionaires.Africa, Macozoma’s Safika Resources held a 39.66% stake in Ntsimbintle Holdings and is expected to receive about R4.4 billion from the transaction.
The deal covers interests in Ntsimbintle Mining, Mokala Manganese, Hotazel Manganese Mines, Jupiter Mines and the group’s marketing arm. It includes the Tshipi Borwa manganese mine in the Northern Cape.
Business Day reported in February that Ntsimbintle planned to distribute the proceeds to shareholders rather than use the money for further acquisitions.
“We are going to declare dividends because we believe empowerment is about creating value, and that value must be in the hands of owners, who must then decide what they want to do with it,” Macozoma said.
Steelmaking
Exxaro announced in March that it had completed the main part of the acquisition, transferring R10.6 billion in cash to the sellers. The transaction gave Exxaro 100% of Ntsimbintle Mining, which owns 50.1% of Tshipi Borwa, as well as 19.99% of Jupiter Mines, 100% of Ntsimbintle Marketing and 9% of Hotazel Manganese Mines.
Reuters reported that the acquisition forms part of Exxaro’s strategy to diversify beyond coal into minerals such as manganese, while the company works to move more of its manganese exports from road to rail.
South Africa holds about 80% of the world’s known manganese resources and is the leading exporter of the mineral. Manganese is primarily used in steelmaking and also has applications in battery technology.
Macozoma said the decision to sell was partly about timing, arguing that Exxaro had the resources and rationale to take the manganese business to its next stage.
Diversification
“What’s better than coal in this market is manganese, because manganese is one of the critical minerals for the decarbonisation of the world,” he said, according to Business Day.
While exiting manganese, Safika retains interests across several sectors, including trucking, gaming, telecommunications repair and copper.
Billionaires.Africa reported that Safika Resources holds a stake in Prieska Resources, which is developing a copper and zinc project in South Africa’s Northern Cape. Safika also has interests in businesses including Safika Oosthuizens Transport, Spartan Truck Hire and Hot Slots Gaming Enterprises.
Safika had previously announced its diversification into copper and zinc, saying the strategy was aimed at broadening its resources portfolio beyond manganese.
The manganese transaction therefore marks a significant shift in Macozoma’s investment portfolio, converting a long-held mining interest into cash while retaining exposure to other industries and future mineral development opportunities.
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Compiled by Betha Madhomu
