South32 Ltd on Monday said a majority owned joint venture will no longer proceed with the proposed sale of a manganese asset in South Africa.

The Perth-based diversified miner said ‘certain commercial conditions’ linked with the deal were not met.

In November, South32 said its Samancor Manganese Pty Ltd joint venture, in which it has a 60% stake, struck a deal with Satka Investments Pty Ltd to sell the Metalloys manganese alloy smelter in South Africa.

‘Completion of the transaction is subject to certain conditions, including regulatory approvals and consents,’ South32 said at the time.

Anglo American holds the remaining 40% interest in the JV, which also has ownership interests in the Mamatwan and Wessels manganese mines in South Africa and the GEMCO manganese mine in Australia.

Production at Metalloys ceased back in March 2020. The asset is expected to remain under care and maintenance as its future options are considered.

South32 was up 5.6% to 299.50 pence in London early Monday. It was up 5.1% to R 61.50 in Johannesburg.

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