JOHANNESBURG (miningweekly.com) - Singapore-based, ASX-listed miner and metals trader OM Holdings (OMH) announced the purchase on Monday of a 26% interest in South African manganese mine developer Ntsimbintle Mining for A$64-million.

Ntsimbintle has a 50,1% stake in the Tshipi Kalahari manganese project, located within the Kalahari basin, which reportedly has a mineral resource of 163-million tons, grading 37% manganese.

A feasibility study had indicated that the project had the potential to produce between 2,2-million tons and 2,3-million tons of run-of-mine ore a year for 28 years, exploiting 62-million tons of the larger resource.

OMH executive chairperson Low Ngee Tong said that the investment served as an excellent platform for OMH's entry into the South African manganese industry.

"This transaction allows OMH to create a robust strategic foundation for the identification and execution of future South African and broader African manganese projects, while facilitating raw material exploration and other development opportunities. The move adds to the growth potential of our existing smelting business and supports the identification of expansion opportunities into energy-related commodities," he added.

Ntsimbintle chairperson Saki Macozoma said that the company welcomed OMH's involvement in the Tshipi project.

"OMH's strengths in project development, operations management, as well as its China-specific marketing capabilities are a tremendous value-add to the partnership," said Macozoma.

OMH and Ntsimbintle Mining had also formed a marketing joint-venture company that would manage the marketing activities for Ntsimbintle Mining's share of production from the Tshipi project.

Low said that the company's additional interest in the Tshipi project would significantly increase OMH's production capacity of high-grade manganese ore, which underpinned its strategic trade objective to pursue solid opportunities to further develop its global business.

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