The deal, which was signed on August 28, means that Sitatunga’s major shareholder Menar has effectively laid its hands on a mineral resource other than coal for the first time.
Sitatunga MD Arne Hansen stated in a release that miningoperations at the manganese mine will start next year.
He believes the market fundamentals over the medium-to-long-term will be positive for the resource. Manganese is used predominantly in steel manufacturing and industrialapplications.
Meanwhile, Sitatunga also acquired Braakfontein Colliery, which it has renamed Zimpande Colliery, which is an advanced-stage exploration property in Klip River Coals, near Newcastle, in KwaZulu-Natal, from miner Wescoal for R103-million.
Hansen said Sitatunga will leverage off its capable projectmanagement team and growth-oriented investor, Menar, to ensure both projects realise soon.