Black-owned and woman-led Kalagadi Manganese and State-owned Transnet have cemented a partnership that will allow for the transport of an initial one-million tonnes of beneficiated manganese in the form of sinter each year.

The deal will earn Transnet over R3-billion, and the volumes may increase to three-million tonnes a year.

The Manganese Export Capacity Allocation Agreement (Meca 2) contract includes the transport, storage and loading onto a vessel of manganese destined for the export market.

The five-year contract will further allow Kalagadi an allocation of both rail and port capacity through the different manganese export channels for the international markets.

Kalagadi Manganese has participated in the Meca programme since inception, mainly through the provision of forecasts for Transnet for capacity determination purposes.

Kalagadi founder and chairperson Daphne Mashile-Nkosi said last week she was pleased that Kalagadi had finally reached agreement with the State-owned entity after 12 years of engagement.

“This contract . . . will offer us an opportunity to move up to three-million tonnes a year of product from the Kalagadi mine and sinter plant, in the Northern Cape, to ports in the Eastern Cape.”

The partnership supported the creation of over 1 250 direct job opportunities throughout Kalagadi’s value chain and these would make a contribution of R6.2-billion a year to the country’s gross domestic product, she added.

“As an entity, we want to be an active contributor to the country’s mission of retaining the position of being the leading exporter of high-grade beneficiated manganese, and this contract gives us the opportunity to make that dream a reality.”

Since the inception of the Meca 2 programme in 2015, Transnet has recorded an increase in manganese export volumes from five-million tonnes a year to the current 15.1-million tonnes a year.

To date, Transnet has concluded ten Meca 2 contracts with local manganese producers.

Transnet chief customer officer Mike Fanucchi said this was an indication Transnet was serious about the integration of its operations to suit its customers’ needs.