OM Holdings Nets US$101.4M from Ntsimbintle Mining Stake Sale to Exxaro

Strategic Divestment in Manganese Asset

OM Holdings Limited (ASX: OMH) has announced a significant transaction involving the sale of its 26% stake in Ntsimbintle Mining Proprietary Limited (NMPL) to South African mining giant Exxaro Resources Limited. The deal, valued at approximately US$101.4 million, is set to reshape OMH’s investment focus and deepen Exxaro’s footprint in the manganese sector.

The stake is held through OMH’s wholly owned subsidiary, OMH Mauritius Corp., and includes not only shares but also associated marketing rights. NMPL itself holds a 50.1% interest in Tshipi Manganese Mining Proprietary Limited, which operates the Tshipi Manganese Mine, one of the world’s largest manganese producers located in South Africa’s Northern Cape.

Conditions and Approvals Ahead

The transaction is conditional on several regulatory and contractual milestones, including approval from South African competition authorities and the Reserve Bank’s exchange control clearance. Additionally, a new commercial agreement between OMH and Exxaro for the Tshipi manganese ore business must be executed, alongside the establishment of an escrow arrangement and issuance of warranty and indemnity insurance.

OMH expects the deal to close in early 2026, subject to these conditions being met. Upon closing, Exxaro will hold 95% of the consideration in escrow for 12 months as security, reflecting the complexity and scale of the transaction.

Implications for Both Companies

For OM Holdings, the sale represents an opportunity to unlock value from a long-standing investment and recycle capital into its core businesses. Executive Chairman and CEO Ngee Tong highlighted the decade-long partnership with Ntsimbintle and expressed optimism about continuing a commercial relationship with Exxaro in the manganese sector.

Exxaro, a Johannesburg Stock Exchange-listed company with a diversified portfolio valued at approximately US$2.76 billion, is expanding its mineral assets to include manganese ore. This acquisition aligns with its strategy to broaden its commodity base beyond iron ore, thermal coal, and zinc, positioning it as a more diversified mining powerhouse in South Africa.

Market and Sector Context

The Tshipi Manganese Mine is a key player in the global manganese market, a critical metal for steel production and emerging battery technologies. The transaction underscores the ongoing consolidation and strategic repositioning within the manganese mining sector, particularly in the resource-rich Kalahari Manganese Field.

Investors will be watching closely how OMH redeploys the proceeds and how Exxaro integrates this new asset into its operations, potentially influencing manganese supply dynamics and pricing in the years ahead.