Exxaro Resources has announced the successful completion of the sale of its entire shareholding in Exxaro FerroAlloys Proprietary Limited to a consortium made up of FerroAlloys employees, FerroAlloys Management, and EverSeed Energy Proprietary Limited, through its wholly owned subsidiary EverSeed Metal Powders Proprietary Limited, for R250 million. EverSeed is a 100% black-owned investor and operator in the resources and energy sectors with a track record for developing projects across Southern Africa, Europe and North America.

FerroAlloys is a South African-based producer of ferrosilicon, serving a well-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 and enhance its competitiveness in global supply chains.

The transaction, which was finalised on 31 October 2025, was funded through a combination of purchasers’ equity, commercial debt and vendor finance.

The post-transaction ownership structure of FerroAlloys will be:

• EverSeed: 60%
• FerroAlloys Management: 30%
• FerroAlloys Employee Share Ownership Plan (ESOP): 10%

This structure promotes broad-based empowerment and inclusive participation, aligned with Exxaro’s commitment to transformation in line with its Sustainable Growth and Impact Strategy. With effect from the closing date, all contracts, obligations, and commitments of FerroAlloys will remain in force in the interests of business continuity.

The provisions of the Labour Relations Act (LRA) were strictly adhered to throughout the divestment process, preserving the rights and benefits of all employees. Employees of FerroAlloys remain employed by the entity, with all terms and conditions of employment transferring unchanged to the new ownership.

Ben Magara, CEO of Exxaro, said:
“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. We are pleased that our FerroAlloys management will continue to drive the great 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 resilient and competitive business that contributes meaningfully to South Africa’s industrial base and export potential. We extend our appreciation to the management and employees of FerroAlloys for their contributions over the years and wish the team continued success.”

Kerwin Rana, CEO of EverSeed, said:
“The acquisition of FerroAlloys is 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.”

Thindo Nemavhola, the General Manager of FerroAlloys, added:
“As shareholders, management and employees, we are pleased to be taking this great and unique business into the next phase of its sustainable growth and we are delighted to have on board, our majority shareholder, EverSeed, who share our aspiration for a leading, safe and efficient industrial business as we continue to deliver to our longstanding customers. 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” This transaction reflects Exxaro’s strategic commitment to enabling Broad-based Black Economic Empowered businesses that contribute to industrial resilience, export competitiveness and inclusive economic participation.