Exploration and mining project development company Sitatunga Resources has bought the East Manganese project, in Hozatel, Northern Cape, from Southern Ambition, marking the first step in the company’s strategy to build a manganese portfolio in the province.
The deal, which was signed on August 28, means that Sitatunga’s major shareholder Menar has effectively laid its hands on a mineral resource other than coal for the first time.
Sitatunga MD Arne Hansen stated in a release that mining operations at the manganese mine will start next year.
He believes the market fundamentals over the medium-to-long-term will be positive for the resource. Manganese is used predominantly in steel manufacturing and industrial applications.
Meanwhile, Sitatunga also acquired Braakfontein Colliery, which it has renamed Zimpande Colliery, which is an advanced-stage exploration property in Klip River Coals, near Newcastle, in KwaZulu-Natal, from miner Wescoal for R103-million.
Hansen said Sitatunga will leverage off its capable project management team and growth-oriented investor, Menar, to ensure both projects realise soon.