Exxaro Explores Copper Opportunities in Congo, Zambia, and Botswana
Exxaro Resources, primarily a Johannesburg-based coal producer, is actively seeking opportunities to diversify its portfolio by entering the lucrative markets of copper and manganese in Africa’s resource-rich regions.
CEO Nombasa Tsengwa has outlined the company’s interest in copper assets located in Botswana, Zambia, and the Democratic Republic of Congo (DRC), which happens to be the continent’s leading copper producer. Additionally, Exxaro is exploring manganese assets within its home country.
Although Exxaro has not yet identified specific acquisition targets, Tsengwa acknowledges the rising premiums associated with copper assets.
As a result, the company is open to forging partnerships with existing miners as a strategic approach to entering these markets. While she did not provide a precise timeline for deal finalization, Tsengwa expressed the company’s commitment to exploring various opportunities simultaneously.
“We are looking at different opportunities simultaneously,” she stated. “Partnerships where it makes sense…There are different…tactics for acquiring these assets.”
Exxaro’s move aligns with the global trend among mining companies to secure essential metals for the clean energy transition and the growth of electric vehicles.
This strategic expansion into copper and manganese markets follows the footsteps of other South African producers like Sibanye-Stillwater and Impala Platinum, all seeking opportunities beyond their national borders.
Tsengwa noted the appeal of the DRC as a potential investment destination, citing attractive assets that could be explored through partnerships with existing players in the region. In contrast, Zambia stands out for its stability, making it an attractive option for direct investment.
While considering various financing options for these acquisitions, Exxaro is exploring the possibility of utilizing its own resources, alongside options like debt and equity. Tsengwa did not disclose the exact budget allocated for these strategic moves.
SOURCE:miningweekly.com
