Exxaro Resources Limited's (JSE: EXX) diversification into green energy minerals has become more urgent as geopolitical tensions, inflation and high borrowing costs slow investment in the critical metals, Chief Executive Nombasa Tsengwa said on August 18, 2022. Exxaro has announced plans to acquire manganese, copper and bauxite assets - key minerals in the transition to clean energy - as part of its shift from coal, widely considered the most polluting fossil fuel. Investment in minerals which support clean energy technologies has become “more urgent” given the projected supply deficits in the long-term, Tsengwa said during a results call.

The Russia-Ukraine war has heightened geopolitical tensions and compounded global inflation, resulting in higher borrowing costs and political instability that was delaying investments in these critical minerals, she said. Exxaro has said it would look at South Africa, the world's largest producer of manganese, for acquisition targets. Declining supply in China, the largest producer and market of bauxite, also creates an opportunity for new investments to fill the output gap.