BHP's Spinoff South32 Eyes Anglo American's Manganese Assets

South32 Ltd SHTLF, the diversified mining company spun out of BHP Group Ltd BHP in 2015, has expressed interest in acquiring Anglo American's AAUKF share of their jointly owned manganese assets.

While BHP's acquisition efforts mainly focus on prized copper assets, Anglo American also announced restructuring amidst a strategic focus on copper and iron ore.

“At the right price, absolutely. We know them better than anyone else,” said South 32 CEO Graham Kerr, highlighting the company's familiarity with these operations and strategic interest in bolstering their portfolio.

South32, headquartered in Perth, Australia, is the world's largest producer of manganese, a critical steel hardening additive. The company operates major manganese mines at the GEMCO facility in Australia's Northern Territory and South Africa's Kalahari Basin.

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These operations are central to South32’s strategy as it seeks to expand its influence in the global metals market. Kerr mentioned that South32 has around $5 billion earmarked for acquisitions, particularly targeting new copper and zinc projects to diversify its asset base further.

He told Reuters that ideally, South32 would acquire “another operation in copper and zinc and another shovel-ready project,” potentially including increased exposure to Southern Africa.

The company has been actively reshaping its portfolio, recently agreeing to sell its Illawarra metallurgical coal business for $1.65 billion to focus on copper and zinc. Kerr noted the company’s exit from fossil fuels has attracted interest from new investors, particularly European and Australian funds.

This news coincided with BHP’s extension of its bid for Anglo American. The world’s biggest miner was granted a one-week extension, giving them until May 29 to submit a binding offer. BHP is expected to focus on addressing Anglo’s concerns around “completion and execution risks” over the coming week, according to sources.

The potential divestiture of Anglo American's manganese assets to South32 could align with its restructuring efforts and BHP's plans after an eventual takeover.

With BHP potentially acquiring Anglo, South32 sees an opportunity to strengthen its position as a leading supplier of manganese — a crucial component in steel production whose demand is rising alongside the growing battery metals sector. By acquiring Anglo’s stake, South32 would solidify its foothold in this critical market.

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