Anglo American has confirmed its intention to retain its 40% stake in the Samancor Manganese Joint Venture in South Africa, alongside its 60% partner, South32. CEO Duncan Wanblad stated there are “no plans to do anything short term” with the manganese asset, citing its relatively good returns and strategic opportunities.
The Samancor JV, which operates the Wessels and Mamatwan mines, is a key component of Anglo’s portfolio, despite the company’s broader strategy to focus on copper, iron ore, and its Woodsmith fertilizer project. Anglo has recently divested its metallurgical coal and nickel operations and is demerging Anglo American Platinum.
South32, the operator of the manganese operations, forecasts production of two million tons of manganese ore for the current financial year, a decrease from the previous year.While South32 CEO Graham Kerr previously indicated a willingness to acquire Anglo’s stake, he emphasized they would not pay a control premium. Speculation also arose about Exxaro Resources’ potential interest in the asset, but their strategy remains unclear following recent leadership changes.
The manganese market is known for its volatility, with South32 temporarily closing the Wessels mine due to low prices.The price of manganese ore has fluctuated significantly, highlighting the market’s dynamic nature. Anglo’s decision to retain its stake signals confidence in the long-term value of the Samancor JV.