Exxaro Resources on Monday announced the mutual separation of its former chief coal operations officer, Kgabi Masia, as the company’s top echelons continue to bleed leaders.
The company said it had reached an amicable agreement with Masia to part ways after less than three years in the role.
“This development will not affect the company’s operations, as Mervin Govender will continue in his role as acting chief coal operations officer,” it said in a statement.
“The board and the new CEO of Exxaro remain committed to succession planning and the timely appointment of permanent candidates to all critical roles.”
Business Times has reported that Masia was placed on precautionary suspension by former group CEO Nombasa Tsengwa while on a work trip to Switzerland amid allegations of tampering with coal contracts.
He was one of nine top executives who were either placed on suspension or pushed out by Tsengwa, who eventually left the company in February while on suspension pending a disciplinary hearing amid allegations of corporate bullying and misgovernance.
The company’s leadership has faced intense scrutiny since mid-2024, with allegations of bullying, intimidation and governance irregularities in its senior management, prompting an independent investigation by law firm ENS and ultimately resulting in the precautionary suspension of Tsengwa.
Serving since August 2022, Tsengwa was the company’s first woman CEO. She resigned with immediate effect on February 5 2025 after her failed court bid to overturn her suspension. In her resignation letter, she cited being formally charged by Exxaro for conflict of interest and breach of duty, and expressed concern about the investigation’s fairness.
Ben Magara, a mining veteran who headed Lonmin a year after the Marikana massacre, was announced as the company CEO in March.
The executive changes come at a critical time for Exxaro as the company accelerates its shift away from coal towards a more diversified minerals portfolio.
After an unsuccessful bid to acquire a copper mine, Exxaro has intensified its focus on expanding into critical minerals such as copper and manganese, which are essential for the global transition into a low-carbon economy.
Exxaro in its latest annual report said it remained bullish about coal in 2025 thanks to favourable market dynamics, while the new US administration promises to disrupt global investment in the energy transition.
The group laid out its argument for a promising short-term coal outlook in its latest annual report published on Tuesday, forecasting tight supply in seaborne coal markets as Russian producers continue to face sanctions.
Added to this is the Chinese expansionary policy, which is expected to support near-term demand. While SA is not a top supplier of coal to China, an economic recovery in the world’s largest coal consumer would be beneficial for prices.
In the short term, Exxaro said it expected supply pressures and geopolitical factors to outweigh the trends driven by the broader energy transition.
“These constraints will likely sustain market demand, particularly in regions reliant on imported coal for energy security,” said Exxaro.
Escalating tension between the US and Asian importers may provide tailwinds for SA miners, as Asian buyers are expected to cut back on US crude purchases and turn towards suppliers from Russia, the Middle East and Africa.
SA has become a big player in international coal markets in recent years. Amid Transnet’s improved freight rail performance, the Richards Bay Coal Terminal (RBCT) in 2024 exported 52.08-million tonnes, its highest level in three years.
Asia’s share of SA’s total coal exports expanded from 37.1-million tonnes in 2023 to 43.99-million tonnes last year, meaning that 84.5% of SA coal exports went to Asia in 2024, with India and Pakistan the two largest customers.
With Jacob Webster
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