Transnet and United Manganese of Kalahari (UMK) have signed a 10-year contract for the transportation and export of manganese by rail from UMK’s mine in the Northern Cape.
The rail and ports operator announced on Wednesday that the deal was part of its Manganese Export Capacity Allocation (MECA) 3 agreement through which it allocated rail and port capacity to domestic manganese producers for their export volumes.
It said the contract signalled UMK’s confidence in the operator’s ability to ensure efficient access to global markets.
Transnet group chief executive Michelle Phillips said: “We are encouraged by the vote of confidence expressed by UMK through their long-term commitment as part of the MECA programme. This agreement is a clear demonstration of our customers’ confidence in the efficiency and reliability of our services.
“It also bodes well for Transnet’s growth and sustainability, which is underpinned by our ambitious Reinvent for Growth Strategy amid various reform initiatives within the freight logistics sector.”
UMK chief executive Malcolm Curror said that reliable rail freight services remained a key contributor to South African industry.
“By enabling the efficient movement of bulk commodities such as manganese, MECA not only positively adds to our national export capability but also to a greater competitive revitalisation of the country’s logistics network.”
He said this was essential for sustaining economic growth and attracting further investment across all sectors.
Curror added that the MECA agreement also held significant and broader relevance to current national dialogue regarding the mining sector in South Africa.
