Exxaro Resources said Monday it has successfully completed the disposal of its shareholding in Exxaro FerroAlloys to a consortium led by EverSeed Energy, for R250 million.
The transaction, done through an EverSeed Energy subsidiary EverSeed Metal Powders, became effective on October 31, 2025, following the fulfilment of all conditions precedent. Exxaro had first announced its intention to dispose of its ferroalloys business in 2021 as part of a broader portfolio review and shift from non-cor assets.
Exxaro Ferroalloy’s is a domestic producer of ferrosilicon, serving industrial customers in South Africa. Exxaro Resources’ share price notched up 1.26% to R179.08 on the JSE in the afternoon.
Following the transaction, FerroAlloys will be 60% owned by EverSeed, 30% owned by FerroAlloys management, while the FerroAlloys Employee Share Ownership Plan (ESOP) holds a 10% shareholding.
Exxaro said in a statement that the transaction was funded with commercial debt provided by Nedbank, plus equity from the acquiring shareholders, while the balance will be settled through a combination of vendor finance provided by Exxaro and deferred payments.
EverSeed is a 100% black-owned investor and operator in the resources and energy sectors, with a track record of developing projects across Southern Africa, Europe, and North America. These projects include the Greefspan II Solar Power Plant in the Northern Cape and an investment in the Lesego Platinum Project.
The FerroAlloys management team will continue to lead the business, ensuring operational continuity and the preservation of institutional knowledge.
“This transaction reflects Exxaro’s commitment to enabling empowered, locally owned businesses that contribute to industrial resilience, export competitiveness, and inclusive economic participation,” a statement from the firm said.
Exxaro CEO Ben Magara said: “This divestiture marks another 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.”
“We are confident that EverSeed, alongside the management team and employees, will continue to build a resilient and competitive business that contributes meaningfully to South Africa’s industrial base and export potential,” Magana said.
EverSeed CEO Kerwin Rana said the acquisition of FerroAlloys was “squarely aligned with EverSeed’s long-term strategy to build and operate essential industrial businesses.”
“We are particularly pleased that the structure aligns interests across management and employees. With management and employees invested alongside us, we will deliver continuity for customers today, and safe, disciplined, and sustainable growth into the future,” said Rana.
Thindo Nemavhola, the GM of FerroAlloys, said that as shareholders, management and employees, they were pleased to be taking the business into the next sustainable growth phase.
“With an active export license in place, we are well positioned to expand our business into international markets, marking the next frontier of our growth journey,” said Nemavhola.
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