by Nurat Uthman
South African coal miner Exxaro Resources said on Wednesday its board had placed CEO Nombasa Tsengwa on “precautionary suspension” pending an independent probe “into allegations related to workplace conduct and governance practice”.
“The Board takes any such allegations and resultant investigations very seriously but makes no presumption as to its conclusion.
The company will be guided by the outcome of investigation before taking the appropriate action, if any,” Exxaro said in a statement.
Tsengwa was not immediately available for comment.
Exxaro said that the inquiry will be carried out by law firm ENS, adding that the company’s long-time finance director Riaan Koppeschaar would take on the additional role of acting CEO.
Tsengwa, who became CEO in August 2022, was leading Exxaro’s search for clean energy minerals, mainly copper and manganese, as it seeks to diversify away from polluting coal.
She is also president of the Minerals Council South Africa, the main representative body for miners in the country.
“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,” said Exxaro Chairman Geoffrey Qhena.
“The Board and management team will continue 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,” Qhena added.
Exxaro said on Tuesday it expects its thermal coal output to fall 6% in the full-year to Dec. 31, compared to the previous year, mainly due to lower demand from Eskom. Its sales volumes are expected to drop by 2%.
