The buyer, a consortium comprising FerroAlloys employees, management, and EverSeed Energy, marks a rare instance of employee-led ownership in South Africa’s mining industry.
EverSeed, a regional energy and resources investor with operations spanning Southern Africa, Europe, and North America, will hold a 60% stake, while management and an employee share ownership plan (ESOP) will control 30% and 10%, respectively.
Exxaro confirmed that the transaction, finalised on Friday, October 31, 2025, was financed through a mix of equity, commercial debt, and vendor funding. All operational contracts and commitments of FerroAlloys will remain intact to ensure stability and business continuity.
“This divestiture marks another strategic milestone in Exxaro’s journey. We are focusing on our strong coal base, growing energy solutions business, and acquisitive 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,” said Exxaro CEO Ben Magara.
“We are particularly pleased that the structure aligns interests across management and employees,” said Rana.
“With them invested alongside us, we will deliver continuity for customers today and sustainable growth into the future.”
Exxaro’s broader push into future minerals
The FerroAlloys sale follows Exxaro’s R11 billion ($608 million) acquisition of manganese assets in the Kalahari Manganese Field, a move aimed at diversifying its portfolio into minerals vital for global decarbonisation. Manganese plays a key role in both steelmaking and emerging battery technologies, making it central to South Africa’s industrial and energy transition.
“This is a proud moment for Exxaro. We are growing into future-facing minerals like manganese while continuing to invest in coal, which remains vital to South Africa’s economy and energy needs,” Magara said.
As South Africa gradually pivots from coal, one of the dirtiest and most expensive energy sources, to renewables, Exxaro’s latest transaction signals the evolution of one of Africa’s mining giants toward a more sustainable, inclusive, and globally competitive future.
