Transnet and Kalagadi Manganese signed a R 3 billion (USD 198.5 million) contract to transport manganese from Sinter Plant in the Northern Cape through to Eastern Cape Province Ports.
Under the 5-year contract, Transnet will transport 3 million of tonnes of manganese, allowing Kalagadi Manganese an allocation of rail and port capacity through the different manganese export channels for international markets.
The contract supports a job creation of over 1250 direct opportunities making an annually contribution of R 6.2 billion (USD 410 million) to country’s GDP.
The Manganese Export Capacity Allocation Agreement (MECA 2) contract will see the transport, storage, and loading onto a vessel of the Kalagadi Manganese production destined for the export market.
Since 2015, under the MECA2 programme, Transnet has transported increased manganese export volumes from 5 million tonnes per year to the current 15.1 million tonnes per year.
Currently, Transnet is engaged in ten MECA2 contracts with local manganese producers. “When we commenced with the MECA process, and the integration of our service offering, we only had two manganese companies playing in the export manganese markets. We are excited to see this number increasing,” Transnet Chief Customer Officer, Mike Fanucchi, said.
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