After buying out Anglo American’s 50% shareholding in the Moranbah South underground coking coal project in Australia, Exxaro has now agreed terms for the disposal of a 100% stake in the project to Stanmore Resources for around R1.6 billion.
Stanmore Resources is an Australian coal miner operating in the same Bowen Basin within which Moranbah South is located.
Despite the disposal, coal remains a major part of Exxaro which is placing increased focus on South African coal mining activities.
The company exercised its pre-emptive rights in Moranbah South Project following an offer received from Anglo American which held the other 50% in the Australian joint venture project.
Anglo American disposed of its 50% interest in Moranbah South, a transaction that is connected to the global resources firm’s agreed disposal of its steel making coal assets in Australia to Dhilmar.
This has resulted in Exxaro Australia holding a 100% interest in Moranbah South. The South African company said Friday that it had now agreed on the disposal of the entire shareholding in Moranbah South to Stanmore Resources for the purchase consideration price of R1.6bn.
“We outlined at our Capital Markets Day, a clear path to accelerate the disciplined execution of our strategy, including crystallising our portfolio into three distinct pillars of our established South African coal business, renewable energy and future-facing metals for long-term value creation,” said Ben Magara, CEO of Exxaro on Friday.
Because of this strategy, Moranbah South had become non-core for Exxaro. Magara said the disposal of Moranbah South to Stanmore Resources is consistent with the company’s commitment to its new strategy.
Last year, Exxaro disposed of its FerroAlloys operation.
This, together with the disposal of the Moranbah South project represents “further progress in simplifying our portfolio, allowing us to focus management attention and direct capital to areas which enhance long term” value.
“Coal remains an important business pillar. Our established South African coal portfolio, underpinned by long-life, high-quality, well capitalised and cash generative assets will continue to provide defensive and diverse earnings, supporting the execution of our growth strategy,” explained Magara.
Shares in Exxaro grew 2.15% R197.05 on the JSE on Friday, extending the previous seven days’ 6.77% appreciation. Last month, Exxaro reported a 20% fall for its June 2026 interim headline earnings per share to R13.77 despite a 7% upswing in half year revenues R22.1 billion.
Half year dividends also slumped from R8.43 to R7 although Magara said Exxaro was “encouraged by the improvement in logistics, energy availability and grid stability” in South Africa which would aid production and shipments of its produce.
Exxaro is now “focused on maintaining our track record of consistent shareholder returns and growing our renewable energy business and future-facing metals, particularly our globally significant position in manganese” according to Magara.
The company expects to close the deal with Stanmore before the end of the fourth quarter of 2026. The transaction is however still subject to customary Australian regulatory approvals, including those related to Foreign Investment Review Board, clearance by the Australian Competition and Consumer Commission and Ministerial approval for the transfer of mining tenements.
In November 2025, Exxaro signed a R1.8bn agreement for the acquisition of renewable energy assets in the Northern and Western Cape, South Africa as it scales its energy solutions.
The acquisition was completed through Exxaro’s wholly owned subsidiary, Cennergi, covering binding agreements signed with Acciona Energía for the acquisition of the 138MW Gouda Wind Farm in the Western Cape and the 75MW Sishen Solar Facility in the Northern Cape.
tawakarombo@yahoo.co.uk