KEY POINTS
- CEO Nombasa Tsengwa suspended pending a workplace conduct investigation by ENS law firm.
- CFO Riaan Koppeschaar was named acting CEO to ensure leadership continuity.
- Exxaro affirms commitment to governance and low-carbon transition amid leadership change.
Exxaro Resources announced on Wednesday that it had suspended its CEO Nombasa Tsengwa pending an investigation into allegations of workplace conduct and governance practices with immediate effect.
The Johannesburg Stock Exchange-listed mining and energy firm proclaimed that the suspension was intended to protect its interests.
ENS law firm will investigate the allegations as Tsenga will refrain from all executive and board duties for the duration of the inquiry.
Independent probe and next steps
According to Miningweekly, Exxaro’s board emphasized the seriousness of the allegations but refrained from making any assumptions until the outcome of the investigation by ENS.
“The board takes these matters very seriously and will be guided by the findings of the investigation before determining further action,” the statement said.
However, the company assured stakeholders that the decision aligns with the company’s commitment to sound governance and corporate responsibility.
Leadership transition
CFO Riaan Koppeschaar has been named acting CEO to ensure continuity and stability. He will simultaneously continue in his current role as CFO.
Chairperson Geoffrey Qhena expressed confidence in Koppeschaar’s leadership, citing his extensive experience within the company and the mining sector.
“The board is fulfilling its fiduciary duties by taking decisive steps to stabilize leadership while upholding the company’s values and policies,” Qhena said.
Koppeschaar, who has been CFO since 2016 and held senior management roles at Iscor and Kumba Iron Ore, will lead an experienced executive team to maintain operational focus.
“Our priority remains on meeting customer demand, driving safe and efficient production, and advancing Exxaro’s transition to a diversified minerals and renewable energy business,” Koppeschaar said.
Broader implications
Tsengwa, who has served as CEO since 2021, is also president of the Minerals Council South Africa, an organization representing 69 mining companies.
Her suspension marks a significant moment for Exxaro and could have wider implications for South Africa’s mining sector.
Exxaro reiterated its strategic focus on maximizing the value of its assets while transitioning toward a low-carbon future.
The company stated that its leadership team and seasoned board are well-equipped to navigate this period and ensure business continuity.
