South Africa’s Exxaro to acquire and sell entire Moranbah South interest for $105 million

Exxaro Resources, a Gauteng-based diversified resource and coal producer led by Zimbabwean mining tycoon Bennetor (Ben) Magara, has exercised its pre-emptive right to acquire Anglo American’s 50% interest in the Moranbah South Project in Australia before agreeing to sell the entire asset to Stanmore Resources for $105 million.

The transaction forms part of Exxaro’s strategy to simplify its portfolio and focus capital on its established South African coal operations, renewable energy and future-facing metals, particularly manganese.

South African miner Exxaro, through its wholly owned subsidiary Exxaro Australia, currently owns a 50% participation interest in Moranbah South. The company exercised its pre-emptive right after receiving an offer from Anglo American for its stake as part of Anglo American’s broader disposal of its Australian steelmaking coal assets to Dhilmar QLD.

Exxaro to take full ownership before disposal

Following completion of the pre-emptive acquisition, Exxaro Australia will temporarily become the 100% owner of Moranbah South.

Exxaro has subsequently agreed to sell its entire interest to Stanmore Resources for a purchase consideration of $105 million. Once the disposal is completed, Stanmore will hold 100% of Moranbah South. The transaction is expected to close before the end of the fourth quarter of 2026, subject to customary Australian regulatory approvals.

These include approval from the Foreign Investment Review Board, clearance from the Australian Competition and Consumer Commission and ministerial approval for the transfer of mining tenements.

Moranbah South classified as non-core asset

Exxaro CEO Ben Magara said the transaction is consistent with the company’s strategy to simplify its portfolio and concentrate management attention and capital on businesses with stronger long-term value potential.

At its Capital Markets Day, it identified its portfolio around three pillars: established South African coal, renewable energy and future-facing metals.

Moranbah South was identified as a non-core investment under that strategy. Magara said the transaction, alongside the disposal of FerroAlloys completed in October 2025, represents further progress in simplifying the group’s portfolio.

It will retain its established South African coal business, which management describes as a source of defensive and diversified earnings supporting the company’s growth strategy.

The company remains focused on shareholder returns while expanding its renewable energy operations and future-facing metals portfolio, particularly its position in manganese. The disposal will allow Exxaro to exit Moranbah South while generating $105 million in proceeds and further concentrating its portfolio around its identified strategic priorities.