A consortium of South African manganese producers plans to bid for a concession to build and operate a new export terminal at the port of Port of Ngqura, in a move aimed at expanding the country’s capacity to ship the mineral and easing long-standing logistics constraints.
The group, known as the Manganese Producers Consortium (MPC), includes mining companies involved in the production and export of manganese ore, a key ingredient in steelmaking.
Diversified mining company African Rainbow Minerals (ARM) said on Friday that its manganese joint venture Assmang is part of the consortium preparing to submit a bid to state-owned rail and ports operator Transnet.
The proposed facility, called the Ngqura Manganese Ore Export Terminal, would be developed through a joint venture between the consortium and Transnet if the bid is successful.
“The MPC intends to bid for the request for quotation with Transnet as a joint-venture partner for the design, build, construction and operator of the new manganese ore export port at Ngqura,” ARM said in a statement accompanying its latest financial results.
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The terminal project is expected to add about 16 million metric tonnes of export capacity, significantly boosting the country’s ability to ship manganese to global markets.
Industry players have long complained that logistics bottlenecks — particularly rail constraints and limited port capacity — have restricted South Africa’s ability to fully capitalise on its vast manganese resources.
Transnet has been gradually opening parts of its rail and port network to private participation as it seeks to restore operational capacity that has deteriorated in recent years due to infrastructure failures, equipment shortages and cable theft.
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The company has said it plans to invite bids for the Ngqura manganese export terminal around April.
Located in the Eastern Cape province, the Port of Ngqura is one of South Africa’s deepest ports and is strategically positioned for bulk mineral exports.
The facility is expected to complement existing manganese export infrastructure at Port of Gqeberha, which has long served as a key shipping point for manganese from the Northern Cape mining region.
South Africa holds roughly 70 percent of the world’s known manganese resources, making it a dominant player in the global market for the mineral.
Manganese is primarily used in steel production, where it strengthens alloys and improves durability.
The country is also the world’s largest producer of manganese ore, with the bulk of exports shipped to Asia.
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China, the world’s biggest steel producer, remains the largest destination for South African manganese shipments.
Exports of the mineral reached an estimated 26.2 million tonnes in 2025, according to the Minerals Council South Africa, marking a record high for the industry.
The figure surpassed the previous peak of 22.3 million tonnes recorded in 2024.
Despite strong export volumes, manganese producers have faced pressure from lower prices on global markets.
ARM said headline earnings from its manganese ore operations declined by 76 percent during the reporting period, largely due to a 22 percent drop in the average dollar price for high-grade ore.
Lower prices offset the impact of higher export volumes and improvements in logistics.
Nevertheless, the diversified miner reported a 10 percent increase in overall profit to 1.67 billion rand (about $100 million) for the six months to December 31.
The increase was driven mainly by stronger prices for platinum group metals, which helped offset weaker performance from manganese, iron ore and the company’s loss-making coal division.
Industry analysts say expanding export infrastructure will be crucial if South Africa is to maintain its position as the leading global supplier of manganese.
By improving logistics and reducing transport bottlenecks, projects such as the Ngqura export terminal could help producers increase shipments and better compete in international markets.
