South African miner worth R60 billion sells business for R250 million
Exxaro Resources has announced the sale of its entire shareholding in Exxaro FerroAlloys Proprietary Limited in a deal worth R250 million.
Exxaro, which has a market cap of R60 billion, is selling the company to a consortium made up of FerroAlloys employees, FerroAlloys Management, and EverSeed Energy Proprietary Limited.
Everseed is an investor and operator in the resources and energy sectors and has invested in projects across Southern Africa, Europe and North America.
FerroAlloys is a South African-based producer of ferrosilicon. It serves a well-established domestic customer base and hold an active export licence.
Exxaro said that the transaction will allow the company to expand its footprint and enhance its competitiveness in global supply chains.
The transaction was finalised on 31 October 2025 and was funded via a combination of the purchasers’ equity, commercial debt, and vendor finance.
The post-transaction ownership structure of FerroAlloys will be:
- EverSeed: 60%
- FerroAlloys Management: 30%
- FerroAlloys Employee Share Ownership Plan (ESOP): 10%
With effect from the closing date, all contracts, obligations, and commitments of FerroAlloys will remain in force to ensure business continuity.
“This divestiture marks another strategic milestone in Exxaro’s journey as we accelerate the delivery of our strategy,” said Exxaro CEO Ben Magara.
“We are focusing on our strong coal base, growing energy solutions business and acquisitive growth ambitions in energy transition metals.”
“We are confident that EverSeed, alongside the management team and employees, will continue to build a resilient and competitive business that contributes meaningfully to South Africa’s industrial base and export potential.”
Kerwin Rana, CEO of EverSeed, said that the acquisition of FerroAlloys is squarely aligned with the company’s long-term strategy to build and operate essential industrial businesses.
“We are particularly pleased that the structure aligns interests across management and employees,” said Rana.
“With management and employees invested alongside us, we will deliver continuity for customers today, and safe, disciplined and sustainable growth into the future.”
Exxaro’s next moves
The deal follows Exxaro’s acquisition of manganese assets within the Kalahari Manganese Field in the Northern Cape in a deal worth over R11 billion.
Exxaro said that the deal supports the company’s diversification strategy into critical minerals that power global development, including manganese.
Manganese is used in steel and emerging battery technologies and is seen as a key part of South Africa’s energy mix.
“This is a proud moment for Exxaro. We are growing into future-facing minerals like manganese while continuing to invest in coal, which remains a priority for us and vital to South Africa’s economy and energy needs,” said Magara.
The move is indicative of South Africa’s likely shift from coal energy to renewable sources. Exxaro is one of Eskom’s largest coal suppliers alongside Serati.
Coal remains one of the dirtiest, least efficient and costliest sources of electricity.
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