Transnet, Hotazel Manganese Mines Seal 10-Year Deal to Boost Export Capacity

The MECA3 framework introduces a demand-led, multi-year capacity allocation model aimed at enabling more efficient planning and predictable operations across the manganese value chain.

Transnet and Hotazel Manganese Mines (HMM) — a joint venture operated by a wholly owned subsidiary of South32 — have signed a landmark 10-year agreement securing long-term rail and port capacity for manganese exports. The deal, concluded under the third phase of the Manganese Export Capacity Allocation (MECA3) framework, marks a significant milestone in South Africa’s efforts to strengthen its mineral export infrastructure and competitiveness on the global stage.

MECA3: A Demand-Led Export Model

The MECA3 framework introduces a demand-led, multi-year capacity allocation model aimed at enabling more efficient planning and predictable operations across the manganese value chain. By providing exporters with guaranteed access to rail and port facilities, the system supports better investment decision-making, promotes operational efficiency, and bolsters confidence among mining sector stakeholders.

Exports under the agreement will flow through critical logistics corridors — including the ports of Saldanha and Ngqura — enabling HMM to supply its key global markets with greater reliability and scale.

A Partnership Built Over Decades

HMM, situated in the Kalahari Basin of the Northern Cape, is home to two major manganese operations — the Wessels and Mamatwan mines — located within the world-renowned Kalahari Manganese Field. The company has been a vital contributor to the global manganese supply chain for over 40 years, producing ore essential for the steelmaking and battery industries.

The partnership between Transnet and HMM stretches back to the 1970s, with rail transport forming a backbone of the mine’s export operations. Over time, this collaboration has adapted to growing export volumes, infrastructure developments, and South Africa’s strategic objective of expanding its mineral exports.

Statements from Leadership

Transnet Group Chief Executive Michelle Phillips hailed the agreement as a reflection of operational excellence and commitment to the mining sector.

“This agreement is a testament to the efficiency and reliability of our services. By securing dedicated rail and port capacity, the agreement provides HMM with the operational certainty needed to support its mining and export activities, which contribute to local jobs and the country’s economic prosperity,” Phillips said.

HMM Vice President Operations Barry Bezuidenhout emphasised that long-term access to export infrastructure is essential for maintaining the company’s global standing.

“The signing of this agreement continues our position as a leading global supplier of manganese, as well as a major local employer in South Africa’s Northern Cape. We look forward to continuing our long-standing mutually beneficial relationship with Transnet and working together to identify opportunities to grow rail logistics capacity in South Africa,” Bezuidenhout noted.

Economic and Strategic Impact 

Manganese is one of South Africa’s key mineral exports, and the Northern Cape’s deposits are among the largest and richest in the world. Ensuring reliable logistics for this commodity not only sustains the country’s mining sector but also supports downstream industries, infrastructure investment, and job creation.

With this 10-year deal, both Transnet and HMM aim to unlock greater export volumes, enhance South Africa’s competitive edge in the global manganese market, and contribute to the nation’s long-term economic growth.