Mining company Exxaro says it is working to conclude an investigation into the conduct of the suspended head of coal operations, Kgabi Masia, as soon as possible.
Board chair Geoffrey Qhena said an independent legal firm was supporting the board in efforts to complete the probe as “quickly as thoroughness allows”.
“The board’s actions will be informed by the outcome of the investigation,” he said.
Masia was dramatically 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.
Ben Magara has since been appointed group CEO. He is the former CEO of platinum miner Lonmin.
Qhena said the board remained committed to upholding the highest standards of governance and oversight while managing the leadership transition.
“The board remains confident in Exxaro's strategic direction and the resilience of our leadership team in guiding the company,” he said.
Exxaro has promised to deliver a diversification strategy from coal to include copper, an important metal for thermal conductivity that is critical in renewable energy installations, from wind turbines to the making of electric vehicles and other green products.
The group's coal production volumes fell by 7% to 39.5Mt from 42.3Mt a year earlier, largely driven by lower demand from Eskom at the Grootegeluk colliery
The group's coal production volumes fell by 7% to 39.5Mt from 42.3Mt a year earlier, largely driven by lower demand from Eskom at the Grootegeluk colliery. Its Belfast mine, however, improved production by 21%. Exxaro's export sales volumes jumped by 37% as the group used alternative distribution channels and benefited from improved market access.
It channelled more coal via the Maputo corridor in 2024 due to logistical constraints, but saw coal revenue rising by 6% to R39.11bn. However, Ebidta (earnings before interest, depreciation, tax, and amortisation) — a measure of profitability — fell by 22% to R10.4bn, mainly due to lower headline earnings in a tough operating environment.
It is reviewing available routes to market to meet demand after moving 1.8Mt more by road, up from 479Mt a year earlier.
“We regularly engage with Transnet Freight Rail (TFR) to improve operational performance and we review and develop alternative routes to market to mitigate the impact of rail disruptions on our export evacuation,” Exxaro said.
It noted that three derailments affected TFR's volume throughput in the first half of the year. But the rail division's overall haulage to the Richards Bay coal terminal — an export coal sorting facility in KwaZulu-Natal — increased to 51.91Mt, up from 47.92Mt in 2023, with an improved performance in the second half of the year.
This week, Exxaro signed a memorandum of understanding with its biggest client, Eskom, to reduce its carbon footprint as part of an ambitious drive to become carbon neutral by 2050.
“The signing of his MOU establishes a framework which will assist us with our vision towards carbon emissions reduction and other pollutants through our collective value chains and support the country's just energy transition,” said Magara.
In a joint statement, Exxaro and Eskom said the agreement would focus on measuring, managing and reducing scope 1, 2 and 3 emissions and potentially investing in innovative technologies to mitigate the impact of climate change. It will also have a focus on skills development and job creation.
This would guide the investments needed to find technology-based solutions to the challenges associated with the transition to a low-carbon economy aligned with South Africa's Integrated Resource Plan, they announced.
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