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South Africa’s Exxaro Resources — one of the nation’s largest diversified miners, valued at R60 billion (USD 13.2 billion) — has completed the sale of its FerroAlloys subsidiary for R250 million (USD 13.8 million), marking a key step in its strategic transition toward cleaner energy and critical minerals.
The buyer is a consortium comprising FerroAlloys employees, management, and EverSeed Energy, in a rare example of employee-led ownership in South Africa’s mining sector. EverSeed, a regional energy and resources investor with operations across Southern Africa, Europe, and North America, will hold a 60% stake, while management and an employee share ownership plan (ESOP) will own 30% and 10%, respectively.
Exxaro confirmed that the transaction, finalized on October 31, 2025, was financed through a mix of equity, commercial debt, and vendor funding. All existing operational contracts and commitments will remain in place to ensure business continuity.
“This divestiture marks another strategic milestone in Exxaro’s journey,” said Exxaro CEO Ben Magara. “We are sharpening our focus on our strong coal base, expanding our energy solutions business, and pursuing growth in energy transition metals. We are confident that EverSeed, together with the management team and employees, will continue to build a resilient and competitive enterprise that supports South Africa’s industrial and export ambitions.”
For EverSeed CEO Kerwin Rana, the acquisition fits squarely within the firm’s long-term investment strategy in future-focused industries. “We are particularly pleased with a structure that aligns management and employee interests,” said Rana. “With everyone invested alongside us, we can ensure both continuity for today’s customers and sustainable growth for the future.”
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The FerroAlloys divestment follows Exxaro’s R11 billion ($608 million) acquisition of manganese assets in the Kalahari Manganese Field, part of its broader effort to diversify into minerals critical for global decarbonization. Manganese is key to both steelmaking and emerging battery technologies, positioning Exxaro at the heart of South Africa’s industrial and energy transition.
As South Africa moves gradually from coal toward renewable energy, Exxaro’s latest transaction underscores the evolution of one of Africa’s mining giants into a more sustainable, inclusive, and globally competitive enterprise.
