HomeBase MetalsKalagadi Manganese and Transnet sign R3-billion contract

Kalagadi Manganese and Transnet sign R3-billion contract

Black-owned and woman led, Kalagadi Manganese and Transnet have cemented a partnership which will allow for the transportation of up 1 Mt with a potential to ramp up to 3 Mtpa of beneficiated manganese in form of sinter which will be in excess of R3-billion for Transnet.

The Manganese Export Capacity Allocation Agreement (MECA 2) contract will see the transportation, storage, and loading onto a vessel of the Kalagadi Manganese production destined for the export market.

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The 5-year contract will further allow Kalagadi an allocation of both rail and port capacity through the different manganese export channels for the international markets.

Kalagadi Manganese has participated in the MECA programme since inception, mainly through providing forecasts to Transnet for capacity determination purposes.

Founder and Chairperson, Daphne Mashile-Nkosi says she is pleased that after 12 years of engagement, Kalagadi has finally reached agreement with the state-owned entity.

“This contract, which as part of the MECA 2 project, will offer us an opportunity to move 3 Mt product from the Kalagadi Mine and Sinter Plant in the Northern Cape through to Eastern Cape Province Ports.

This partnership supports a job creation of over 1250 direct opportunities through various parts of our value and these will make a contribution of R6.2 billion annually to the country’s GDP.

She said, the partnership with Transnet speaks directly to Kalagadi goals of providing a guaranteed and trusted environment for Kalagadi’s exports, which are secured from global and domestic economic uncertainties.

“As an entity, we want to be an active contributor to the country’s mission of retaining the position of being the leading exporter of high-grade beneficiated manganese. And this contract gives us the opportunity to make that dream a reality,” says Mashile-Nkosi.

Since the inception of the MECA 2 programme in 2015, Transnet has witnessed an increase of export volumes from 5 Mtpa to the current 15.1 Mtpa. To date, Transnet has concluded ten MECA 2 contracts with local manganese producers.

Transnet Chief Customer Officer Mike Fanucchi says:

“This is an indication that Transnet is serious about the integration of its operations to suit the customers’ needs. When we commenced with the MECA process, and the integration of our service offering, we only had two companies playing in the export manganese markets. We are excited to see this number increasing.”

Transnet together with key manganese producers have set aside 15% percent of the overall export line capacity for the new entrants in the manganese export market.