Top manganese producers consider bid for new South Africa export hub 

South Africa’s largest manganese miners are weighing a joint bid to run a new export terminal at the port of Ngqura, a project aimed at easing pressure on the country’s strained logistics network. 

Producers grouped under the Manganese Producers’ Consortium plan to enter a competitive process in the coming months to design, build and operate the terminal, according to a statement Friday from African Rainbow Minerals, which has stakes in companies involved in the consortium.

Industry eyes larger export capacity 

South Africa is the world’s biggest source of manganese ore, a key ingredient used in steel production. The country holds about 70% of known global manganese resources, most of them located in the Kalahari Basin in Northern Cape province widely considered the largest land-based deposit of the mineral. 

Much of that output is exported as raw ore. Domestic smelting has declined over the years as high electricity prices and strong competition from China made local processing less viable. 

The consortium plans to partner with state logistics operator Transnet SOC Ltd. on the Ngqura project.

Members include Hotazel Manganese Mines, a joint venture between South32 Ltd. and Anglo American Plc as well as Assmang, a manganese producer partly owned by African Rainbow Minerals. 

Steelmaking remains the largest use of manganese worldwide. Demand from battery makers, including those supplying electric-vehicle manufacturers, is also expected to grow over time as the energy transition expands.

Logistics overhaul under way 

South Africa accounts for roughly 40% of global manganese exports, placing heavy pressure on rail lines and ports that move the ore to international markets. 

Transnet has been trying to rebuild its freight network after years of operational setbacks and governance problems weakened performance. The company is increasingly looking to private partners to help expand capacity along key mineral export routes. 

One major step is the planned closure of the manganese bulk terminal in Port Elizabeth, which currently handles about 5.5 million tons a year. Transnet has cited environmental concerns for the decision. 

A new facility at nearby Port of Ngqura is expected to handle nearly three times that volume. South Africa exported a record 26 million tons of manganese ore last year, according to estimates from the country’s main mining industry body. 

To support higher exports, Transnet is also working with private partners to expand rail capacity between the Northern Cape mining belt and the coast. 

Consortium produces majority of SA manganese

Members of the Manganese Producers’ Consortium produce more than 60% of the manganese ore exported from South Africa, African Rainbow Minerals said. The group also includes Exxaro Resources Ltd. through its Tshipi Borwa mine. 

Recent cooperation with Transnet has already brought small improvements. Wagon payloads moving ore to the port of Saldanha have increased to 67 tons from 63 tons over the past year, lifting annual rail and port capacity by about 350,000 tons. 

Assmang is also part of a separate industry partnership working with Transnet to improve the country’s iron-ore export corridor. Performance on that line rose 7% in the six months through Dec. 31 from a year earlier, the company said.