Exxaro to sell Moranbah South project to Stanmore
Exxaro Resources has agreed to dispose of its 100% interest in the Moranbah South project, in Australia, to Stanmore Resources for $105-million, once Exxaro completes the buyout of Anglo American’s 50% stake in the project.
Exxaro, through its wholly owned subsidiary, Exxaro Australia, has exercised its pre-emptive right regarding the Moranbah South project, following an offer received from Anglo American for its 50% interest in this, in connection with the latter’s agreed disposal of its steelmaking coal assets in Australia to Dhilmar.
Exxaro Australia currently holds a 50% participation interest in Moranbah South. Following implementation of the pre-emptive acquisition, Exxaro Australia will hold a 100% interest in Moranbah South, which it will then sell to Stanmore.
“We outlined at our Capital Markets Day, a clear path to accelerate the disciplined execution of our strategy, including crystalising our portfolio into three distinct pillars of our established South African coal business, renewable energy and future-facing metals for long-term value creation.
“As part of this strategy, we showed our investment in Moranbah South as noncore. This transaction is consistent with that commitment and, together with the disposal of FerroAlloys – completed in October 2025 – represents further progress in simplifying our portfolio, allowing us to focus management attention and direct capital to areas which enhance long-term value for all our stakeholders,” Exxaro CEO Ben Magara explains.
“Coal remains an important business pillar. Our established South African coal portfolio, underpinned by long-life, high-quality, well-capitalised and cash-generative assets, will continue to provide defensive and diverse earnings supporting the execution of our growth strategy.
“We remain focused on maintaining our record of consistent shareholder returns and growing our renewable-energy business and future-facing metals, particularly our globally significant position in manganese,” he adds.
Exxaro expects to complete the sale of Moranbah South to Stanmore by the end of this year.
Stanmore CEO Marcelo Matos, meanwhile, says the acquisition will increase the company’s resource base and strengthen the platform to deliver on the company’s future growth aspirations.
“The tenements are strategically complementary to Stanmore’s neighbouring projects, particularly Eagle Downs and the Isaac Downs Extension,” he points out.
He adds that the resource base at Moranbah South is expected to be of premium hard coking coal quality and may potentially be accessed through mine infrastructure at Eagle Downs, should that project be developed.
Further, the acquisition of Moranbah South extinguishes up to $60-million of deferred and contingent consideration under a 2024 designated area agreement, which enabled access to the Isaac Downs Extension through the Moranbah South tenements.
“This further enhances the value of the transaction and the economics of the Isaac Downs Extension,” the company notes.