Johannesburg: Transnet and Hotazel Manganese Mines (HMM), operated by a subsidiary of South32, have signed a decade-long contract to ensure the transportation of manganese via rail and port, securing export capacity.
According to South African Government News Agency, the agreement was established under the third phase of the Manganese Export Capacity Allocation (MECA3) framework. This framework introduces a demand-led, multi-year capacity allocation model aimed at enhancing planning, efficiency, and investment confidence in the manganese value chain. The manganese will be exported through key channels such as Saldanha and Ngqura to HMM’s international markets.
Transnet, in a statement, mentioned that the contract strengthens the partnership between the organizations, ensuring operational certainty for one of South Africa’s leading manganese producers. HMM, based in the Northern Cape’s Kalahari Basin, has been a key player in the global manganese supply chain for over forty years, operating the Wessels and Mamatwan mines.
The longstanding relationship between HMM and Transnet dates back to the 1970s, with rail playing a crucial role in HMM’s logistics and export operations. This partnership has supported growing volumes, infrastructure expansion, and South Africa’s export goals over the years.
Michelle Phillips, Transnet Group Chief Executive, highlighted that the agreement is a testament to the efficiency and reliability of services, reinforcing the commitment to the mining sector. It ensures predictable access to rail capacity, crucial for manganese exporters.
Barry Bezuidenhout, South32 HMM Vice President Operations, emphasized the importance of securing long-term rail and port capacity for accessing international markets. The agreement solidifies HMM’s position as a leading global manganese supplier and major local employer in the Northern Cape. He expressed optimism in continuing the beneficial relationship with Transnet and exploring opportunities to expand rail logistics capacity in South Africa.