South African mining company Exxaro Resources is advancing discussions around a potential copper investment that could be progressed within the next 12 months, signalling the company's determination to build a larger presence in the minerals expected to underpin the global energy transition. The company is accelerating efforts to diversify its portfolio as demand for critical minerals such as copper, manganese and battery metals continues to grow worldwide.

Speaking during Exxaro's capital markets presentation, Head of Business Development Richard Lilleke revealed that the company is in advanced discussions regarding a copper opportunity, marking the latest step in its long-term strategy to reduce dependence on thermal coal. "We are in advanced discussions regarding a potential copper investment which we hope to advance in the next 12 months," Lilleke said.

The move comes as Exxaro targets a significant transformation of its earnings profile. The company has stated that it aims for 60% of group earnings to originate from non-coal operations by 2030, reflecting a broader shift taking place across Africa's mining sector as producers position themselves for the energy transition.

Building a future beyond coal

Exxaro's pursuit of copper follows its landmark R11.67 billion investment in manganese assets last year, one of the largest diversification moves undertaken by a South African mining company in recent years.
The strategy mirrors a growing trend among mining companies globally, where traditional bulk commodity producers are seeking exposure to minerals essential for electrification, renewable energy infrastructure and electric vehicle manufacturing.

Copper has become particularly attractive because of its central role in power transmission, renewable energy systems, electric vehicles and data centres. Industry forecasts suggest global copper demand could outpace supply over the coming decade, creating opportunities for new producers and investors.
For Exxaro, however, the path into copper has not been straightforward.

In 2023, the company unsuccessfully pursued Botswana's Khoemacau Copper Mine, a high-quality asset ultimately acquired by China's MMG for US$1.6 billion. The transaction highlighted the intense competition for established copper assets as major mining companies and strategic investors seek to secure future supply. Rather than pursuing another large-scale acquisition, Exxaro has adjusted its approach. "Over the last year, we have increasingly focused on earlier-stage projects, where there is naturally increased risk, but lower investment outlays," Lilleke explained. The company indicated it is considering investments in the range of US$10 million to US$30 million, suggesting a preference for exploration and development-stage opportunities where value can be created over time.

Africa's copper opportunity

Exxaro's renewed focus on copper comes as Africa emerges as one of the world's most important regions for future copper supply. Countries such as the Democratic Republic of Congo, Zambia, Botswana and Namibia continue to attract growing investment from mining companies seeking access to high-quality deposits. Governments across the continent are simultaneously working to capture more value from their mineral resources through local processing, downstream manufacturing and strategic partnerships.

The trend has become increasingly evident at industry gatherings such as the annual Investing in African Mining Indaba, where discussions around critical minerals, battery supply chains and responsible resource development have taken centre stage.

Speaking at previous industry forums, Exxaro Chief Executive Officer Nombasa Tsengwa has repeatedly highlighted the importance of repositioning the company for a lower-carbon future. "Our strategy is about building a resilient and diversified business that remains relevant in a changing world," Tsengwa has previously stated when outlining the company's transition plans. That vision is increasingly being translated into investment decisions.

Partnerships key to future growth

Industry observers note that partnerships and strategic collaboration are likely to play a central role in Exxaro's future expansion into copper and other critical minerals. Competition for quality assets remains fierce, particularly as Chinese, North American and European investors intensify efforts to secure long-term supplies of minerals required for the energy transition.

For African mining companies, partnerships can provide access to technical expertise, development capital and downstream market opportunities while helping to reduce project risk. Exxaro's willingness to consider earlier-stage projects may therefore open opportunities for collaboration with junior explorers and emerging developers across the continent. The company's approach also reflects a broader shift in mining investment strategy, where companies are increasingly looking beyond mature assets and seeking exposure to projects capable of delivering future growth at a lower upfront cost.

Positioning for the next mining cycle

As global energy systems continue to evolve, Exxaro's copper ambitions underscore a wider transformation taking place within Africa's mining sector. Coal remains an important contributor to South Africa's energy security and export earnings, but mining companies are increasingly balancing traditional commodities with investments in future-facing minerals. With manganese already added to its portfolio and copper now firmly in its sights, Exxaro appears intent on positioning itself as a diversified mining company capable of participating in both today's commodity markets and tomorrow's clean energy economy.

The company's latest interest in copper represents a logical next step. Copper is widely regarded as one of the most strategic commodities of the energy transition, underpinning electric vehicles, renewable energy infrastructure, transmission networks and the rapid expansion of data centres globally. Should the company conclude a copper transaction within the next year, it would mark another significant milestone in its transition strategy and further strengthen Africa's growing role in supplying the minerals that will power the next phase of global industrial development.

Chief Executive Officer Ben Magara has been clear that diversification sits at the heart of Exxaro's long-term growth strategy. "We have the opportunity to utilise our strong coal foundation as a base from which to expand our portfolio towards the critical low-carbon minerals essential for the future," he said following his appointment as CEO in 2025.