en.Wedoany.com Reported - Exxaro Resources plans to shift its manganese export transport from road to rail, aiming to transfer over 1.5 million tons of cargo to the rail network to reduce logistics costs and enhance export competitiveness.

Company CEO Ben Magara stated during a Capital Markets Day presentation on June 22 that he hopes all manganese from the Tshipi Borwa mine will be transported by rail rather than road. Magara added that the company is in discussions with Transnet Freight Rail (TFR) regarding additional capacity.

Currently, about 46% of the annual manganese production from the Tshipi Borwa mine is transported by road, with the remainder relying on rail. The mine exports approximately 3.5 million tons of manganese annually via the ports of Gqeberha and Saldanha, meaning road transport accounts for over 1.5 million tons. Exxaro noted that road transport costs are about 37% higher than rail, while logistics expenses account for 43% of free-on-board (FOB) export costs.

As part of its diversification strategy, Exxaro earlier this year acquired a controlling stake in manganese producer Tshipi é Ntle. Tshipi exports approximately 3.5 million tons of manganese annually, with resource reserves of around 163 million tons.

Exxaro views logistics optimization as a key opportunity to enhance returns from its manganese operations. Magara highlighted the significant cost advantages of rail transport and reiterated the company's intention to increase the proportion of manganese transported by rail. He also noted that improved rail capacity could create additional export opportunities for Exxaro's overall portfolio, potentially doubling the company's coal exports if rail capacity is sufficient.

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