Botswana Mining Review Comprehensive Coverage of the Progress and Achievements in the Mining Sector
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South African mining giant Exxaro Resources remains committed to its diversification strategy, actively seeking copper and manganese acquisitions, according to Chief Executive Nombasa Tsengwa. This comes after Exxaro was outbid by China’s MMG for the Khoemacau copper mine in Botswana for a hefty $1.9 billion.
Tsengwa emphasized Exxaro’s measured approach, stating, “We are actively looking. We’re in the market, but we’re not desperate.” The company revealed a special dividend of 5.72 rand per share alongside a standard payout of 10.10 rand, buoying investor confidence as evidenced by a 5.19% surge in share price.
Exuding confidence, Tsengwa remarked, “There’s nothing that passes us by, there’s nothing we do not know that is out there on the market.” This sentiment was echoed by Richard Lilleike, Exxaro’s chief growth officer, who confirmed the company is evaluating a range of potential opportunities.
The Botswana setback appears to have done little to dampen Exxaro’s enthusiasm for copper. Copper prices are expected to remain robust in the face of rising demand for electric vehicles and renewable energy infrastructure, making it a lucrative target for diversification. Exxaro’s current focus on coal poses a vulnerability to the global transition away from fossil fuels. Securing copper assets would not only spread the risk but position the company for a sustainable future.
Market watchers will be keenly following Exxaro’s next move. With a clear strategy and ample financial resources, the South African miner seems poised to make a significant impact in the copper market.
