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CBAM and Northern Cape Mining: Manganese, Iron Ore, and the Kalahari Exporters

The Northern Cape is South Africa's mining heartland, home to the world's largest manganese reserves and significant iron ore deposits. This guide covers the CBAM implications for Northern Cape mining exporters.

Published April 2026·Last updated April 2026·carbonborderadjustment.co.za

CBAM and Northern Cape Mining: Manganese, Iron Ore, and the Kalahari Exporters

The Northern Cape is South Africa's mining heartland, home to the world's largest manganese reserves, significant iron ore deposits, and the country's largest solar energy potential. For CBAM purposes, the Northern Cape's manganese and iron ore industries are among the most strategically important in South Africa.

The Northern Cape Mining Landscape

The Northern Cape's mining industry is anchored by three major commodity groups:

1. Manganese (Kalahari Manganese Field) The Kalahari Manganese Field, centred around Hotazel, contains approximately 80% of the world's known manganese ore reserves. Key producers include Assmang, South32, Kalagadi Manganese, and United Manganese of Kalahari (UMK). Annual production is approximately 16–18 million tonnes of manganese ore.

2. Iron Ore (Sishen and Khumani) The Northern Cape hosts South Africa's largest iron ore mines — Sishen (Kumba Iron Ore/Anglo American) and Khumani (Assmang). These mines export approximately 50–60 million tonnes of iron ore annually, primarily to Asian markets. Iron ore itself is not currently covered by CBAM.

3. Diamonds (Kimberley and Namaqualand) The Northern Cape is home to significant diamond production, including the historic Kimberley mines and the Namaqualand coastal deposits. Diamonds are not covered by CBAM.

CBAM Exposure for Northern Cape Miners

Manganese ore producers — Not yet formally covered by CBAM, but Phase 2 inclusion is expected. Producers should begin tracking embedded emissions now.

Ferromanganese and silicomanganese producers — These downstream products are under active Phase 2 review. SA smelters processing Northern Cape manganese ore into ferroalloys face the most immediate CBAM exposure.

Iron ore producers — Not currently covered by CBAM. However, if SA iron ore is processed into pig iron or direct reduced iron (DRI) before export, those products are covered.

The Northern Cape's Renewable Energy Advantage

The Northern Cape has a unique advantage in the CBAM era: it has the highest solar irradiance in South Africa, making it the ideal location for large-scale renewable energy development.

Mining and processing operations in the Northern Cape can access renewable electricity through:

  • On-site solar PV — The Northern Cape's abundant sunshine makes on-site solar generation highly cost-effective
  • Renewable PPAs — Several large solar farms are operating or under development in the Northern Cape
  • Green hydrogen — The Northern Cape is a key location for SA's green hydrogen strategy, which could supply clean energy to mining operations

For a complete CBAM compliance registration pathway, visit the Digital Product Passport Registry.

Frequently Asked Questions

Is iron ore covered by CBAM?
Iron ore itself is not currently covered by CBAM. However, processed iron products (pig iron, direct reduced iron, sinter) are covered as steel precursors. Northern Cape iron ore exporters should monitor Phase 2 expansion closely.
What is the Kalahari Manganese Field and why is it important for CBAM?
The Kalahari Manganese Field in the Northern Cape is the world's largest known manganese ore deposit, containing approximately 80% of global manganese reserves. As CBAM Phase 2 expansion approaches, the Kalahari Manganese Field will be at the centre of SA's CBAM compliance challenge.
Are Northern Cape diamond exports affected by CBAM?
No. Diamonds are not covered by CBAM. The Northern Cape's significant diamond production (Kimberley, Namaqualand) is not subject to CBAM obligations.
What is the export route for Northern Cape manganese?
Northern Cape manganese is primarily exported through Port Elizabeth (now Gqeberha) and Richards Bay. The Sishen-Saldanha iron ore export line also handles some manganese. The long transport distances add to the overall carbon footprint of Northern Cape exports.
How does the Northern Cape's renewable energy potential help with CBAM?
The Northern Cape has the highest solar irradiance in South Africa and significant wind resources. Mining and processing operations in the Northern Cape are well-positioned to access renewable electricity through PPAs, reducing their CBAM liability.
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