Coal miner Exxaro Resources has announced the successful completion of the sale of its entire shareholding in Exxaro FerroAlloys to a consortium made up of FerroAlloys employees, FerroAlloys management and EverSeed Energy – through its wholly owned subsidiary EverSeed Metal Powders – for R250-million.

“This divestiture marks another strategic milestone in Exxaro’s journey as we accelerate the delivery of our strategy, focusing on our strong coal base, growing energy solutions business and acquisitive growth ambitions in energy transition metals.

“Our FerroAlloys management will continue to drive the . . . performance of the business, ensuring stability and stakeholder alignment. We are confident that EverSeed, alongside the management team and employees, will continue to build a . . . business that contributes meaningfully to South Africa’s industrial base and export potential,” Exxaro CEO Ben Magara said on November 3.

EverSeed is a 100% black-owned investor and operator in the resources and energy sectors with a record for developing projects across Southern Africa, Europe and North America.

FerroAlloys is a South Africa-based producer of ferrosilicon, serving an established domestic customer base and holding an active export licence. With international markets identified as the next growth frontier, the transaction positions FerroAlloys to expand its footprint into global supply chains.

The transaction, which was finalised on October 31, was funded through a combination of buyers’ equity, commercial debt and vendor finance.

The post-transaction ownership structure of FerroAlloys will see EverSeed owning 60%, FerroAlloys management owning 30% and the FerroAlloys employee share ownership plan holding the remaining 10%.

This structure promotes broad-based black economic empowerment (BBBEE) and inclusive participation, which is aligned with Exxaro’s transformation agenda as outlined in the company’s Sustainable Growth and Impact Strategy.

“The acquisition of FerroAlloys is squarely aligned with EverSeed’s long-term strategy to build and operate essential industrial businesses. The structure aligns interests across management and employees. With management and employees invested alongside us, we will deliver continuity for customers . . . and safe, disciplined and sustainable growth into the future,” EverSeed CEO Kerwin Rana said.

With effect from the closing date, all contracts, obligations and commitments of FerroAlloys will remain in force in the interests of business continuity.

Employees of FerroAlloys will remain employed by the entity, with all terms and conditions of employment transferring unchanged to the new ownership.

“We are pleased to be taking this . . . business into the next phase of its sustainable growth and we are delighted to have on board our majority shareholder, EverSeed, who shares our aspiration for a leading, safe and efficient industrial business.”

“With an active export licence in place, we are well positioned to expand our business into international markets, marking the next frontier of our growth journey,” FerroAlloys GM Thindo Nemavhola said.