Transnet and Hotazel Manganese Mines HMM have signed a 10-year contract under the third phase of the Manganese Export Capacity Allocation MECA3 framework.
The contract with HMM, a joint venture JV operated by a wholly owned subsidiary of South32, cemented long-term rail and port manganese export capacity for the period, strengthening the collaborative partnership, Transnet said.
The state-owned port and rail freight utility said it provided operational certainty for one of South Africas most established manganese producers.
HMM has been a significant contributor to the global manganese supply chain for over four decades.
The JV consists of two manganese mines, Wessels and Mamatwan, located in the Kalahari Manganese Field in the Northern Cape,
A statement released after the contract was signed said HMM and Transnet shared a long-standing relationship stretching back to the 1970s, making rail an integral part of HMMs logistics and export operations.
Over the years, this partnership has evolved in support of growing volumes, infrastructure expansion and South Africas broader export agenda.
Transnet said the MECA3 agreement built on this relationship and introduced a demand-led, multi-year capacity allocation model designed to enable improved planning, efficiency and investment confidence across the manganese value chain. Under the agreement, the commodity will be exported through the ports of Saldanha and Ngqura to HMMs global markets.
Transnet CEO Michelle Phillips said the agreement was a testament to the efficiency and reliability of our services.
It also reflects our commitment to the mining sector, underpinned by reliable and predictable access to rail capacity for our manganese exporters.
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 countrys economic prosperity.
South32 HMM vice president of operations, Barry Bezuidenhout, said securing long-term rail and port export capacity was vital for the companys access to its international markets.
The signing of this agreement continues our position as a leading global supplier of manganese as well as a major local employer in South Africas 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 said.