South African billionaire Patrice Motsepe is strengthening his mining empire as African Rainbow Minerals (ARM) confirmed its participation in a bid to develop a new manganese export facility at Ngqura Port in the Eastern Cape.

The move comes on the back of ARM’s strong interim results, with earnings rising 10% to R8.66/share, reflecting growing profitability and financial muscle to pursue strategic infrastructure projects.

Patrice Motsepe-led ARM will join the Manganese Producers Consortium (MPC) as a joint venture partner with Transnet for the Ngqura Manganese Ore Export Terminal, alongside major mining players South32, Anglo American, and Tshipi é Ntle Manganese Mining (controlled by Exxaro Resources).

South Africa holds about three-quarters of the world’s identified manganese-ore reserves, mostly in the Kalahari Basin of the Northern Cape. Over 85% is exported as raw ore or partially processed concentrate, giving the nation 36% of the global seaborne manganese trade and putting pressure on rail and port logistics.

According to Moneyweb, Transnet plans to decommission the Port Elizabeth manganese terminal (5.5 million tons/year) and shift exports to Ngqura, a new hub with 16 million tons capacity. The state-owned operator is also working with the private sector to upgrade the rail corridor from the Northern Cape to Ngqura, ensuring infrastructure keeps pace with exports.

The terminal, with an initial capacity of 16 million tons a year, could expand to 22 million tons, providing ARM a critical platform for manganese exports to global markets.

ARM, South Africa moves to strengthen mining industry

This expansion builds on Motsepe’s existing mining portfolio. ARM already has stakes in platinum group metals (PGMs) through joint ventures with Anglo American (Modikwa Mine) and Impala Platinum (Two Rivers).

Strong PGM prices contributed to a 200% increase in platinum headline earnings to R704 million, while basic earnings rose 69% year-on-year to R2.35 billion, boosted by gains from the disposal of ARM’s Sakura manganese processing facility and control over the Nkomati nickel mine.

Despite pressure in ARM’s ferrous and coal divisions, the company maintained a R5/share interim dividend and net cash of R8.46 billion, highlighting Motsepe’s ability to combine strategic growth with shareholder returns.

The manganese terminal also reinforces South Africa’s push for greater local participation in mining.

Government policies increasingly encourage domestic stakeholders, enabling local companies like ARM to capture more of the revenue from mineral exports, strengthen the workforce, and develop downstream beneficiation projects.

As global demand for manganese rises, particularly for steel and battery production, ARM’s involvement ensures that a larger share of profits stays within the country, while enhancing South Africa’s industrial infrastructure.

With this strategic investment, Motsepe is expanding both the scale and reach of his mining empire, solidifying his position as Africa’s most prominent mining billionaire.

By combining strong existing assets with high-potential manganese exports, he is positioning ARM and South Africa at the center of a growing global mineral supply chain. (Business Insider Africa)