The future of Exxaro CEO Nombasa Tsengwa is in peril after the board placed her precautionary suspension while undertaking an investigation into her management that is said to have led to an exodus of the mining house’s executives.
The company on Wednesday said the suspension was in the best interests of Tsengwa and the group as corporate law firm ENS reviews the allegations, first reported by Business Times.
The board has appointed its CFO Riaan Koppeschaar as acting CEO.
“The board is fulfilling its fiduciary duties by taking decisive steps to act in the best interests of the company and stabilise its leadership, while it conducts an appropriately thorough and independent investigation in line with company values and policies,” chair Geoffrey Qhena said in a statement.
“Riaan Koppeschaar has deep knowledge of the company and industry and is well placed to act as CEO having spent the last eight years as Exxaro’s finance director. He will be supported by a highly experienced management team, many of whom have been with the company for decades, and a seasoned board,” Qhena added.
“Together they are well placed to stabilise and lead the company by focusing on meeting customer demand, driving safe, disciplined and efficient production, while creating value for our stakeholders. The board and management team will continue to implement our strategy of maximising the value of our current assets, while undertaking a measured and responsible transition from a coal based to a diversified minerals and renewable energy solutions business that will thrive in a low-carbon future.”
Business Times reported two weeks ago that nine executives had resigned in frustration or been suspended since Tsengwa took over in August 2022. Among those was the suspension of the group’s head of coal operations, Kgabi Masia, while on a work trip in Switzerland.
Former executives who spoke to the publication said one of the issues was the slow pace of the group’s diversification into green metals, including manganese, to reduce its over-reliance on coal.
Tsengwa’s suspension comes a day after the group said it expected a decline in annual output. Thermal coal production is forecast to be 6% lower than the previous financial year.
The decline is forecast to partially offset by improved production at Belfast, though much of that will be exported.
The group forecasts output of thermal coal production of 37.42-million tonnes, down from 39.82-million tonnes in 2023.
Thermal sales are forecast to decrease by 7%, mainly due to a 2% decline in demand from Eskom. The expected decrease in the domestic market was due to more product being channelled to the export market, mainly from Belfast, as well as logistical constraints on the uptake of coal from Leeuwpan, the group said.
Tsengwa is one of the few prominent women executives in the mining industry. In June, she was elected by her peers as president of the Minerals Council.
Other notable women in the industry include Anglo American SA chair Nolitha Fakude — the first woman president of the Minerals Council — and Kumba Iron Ore CEO Mpumi Zikalala, who serves as an office bearer for the council.
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