South African coal producer Exxaro Resources Ltd. is refocusing its strategy after high copper prices and competitive bids made new acquisitions costly, prioritising manganese expansion while maintaining selective copper exploration, Bloomberg reported.

Coal remains its core business, but the company plans to invest up to 14.6 billion rand ($854 million) in two manganese operations in South Africa, with the deal expected to close in early 2026. Manganese, used in steelmaking, offers stable demand and leverages South Africa’s position as a leading global exporter.

Copper proved expensive. Exxaro was shortlisted to acquire Botswana’s Khoemacau mine, but China’s MMG Ltd. secured it for $1.9 billion in late 2023. Chief executive Ben Magara said the experience showed copper projects are “too expensive, especially for coal miners.”

Exxaro is now targeting advanced exploration projects in Botswana, Zambia, Angola, and the DRC, with initial investments of $10–30 million for mid-sized operations producing 50,000–80,000 tons annually.

Global copper markets remain tight, with supply disruptions and growing demand from electrification and renewable energy pushing prices over 20 percent higher this year. Analysts, including Goldman Sachs, expect further gains as the market heads toward a deficit later this decade.

Exxaro will continue acquisitions in manganese while taking a measured approach to copper, balancing diversification with financial discipline.