JOHANNESBURG (miningweekly.com) – State-owned railway company Transnet and United Manganese of Kalahari (UMK) on Wednesday July 16 signed a ten-year contract for the transportation of manganese by rail from UMK’s mine in South Africa’s Northern Cape to ports for export markets.

The Manganese Export Capacity Allocation (MECA) 3 agreement signed is the programme through which Transnet allocates rail and port capacity to manganese producers in South Africa for their export volumes.

The contract with UMK is seen as signifying the company’s confidence in Transnet’s ability to ensure efficient access to global markets.

“We are encouraged by the vote of confidence expressed by UMK through their long-term commitment as part of the MECA programme,” Transnet Group CE Michelle Phillips stated in a media release to Mining Weekly.

Phillips described the agreement as being a clear demonstration of customer confidence in Transnet’s efficiency and reliability, "and 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 CEO Malcolm Curror made the point that reliable rail freight services remain 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,” said Curror in describing MECA as essential for sustaining economic growth and the attraction of further investment across all sectors.

The agreement is viewed as holding significant and broader relevance to current national dialogue regarding South Africa’s mining sector.