Major mining CEO in hot water

South African coal producer Exxaro Resources has placed CEO Nombasa Tsengwa on precautionary suspension until an investigation into allegations over her conduct is concluded.

The claims relate to “workplace conduct and governance practice,” the company said in a statement to the Johannesburg bourse Wednesday. The stock fell as much as 5.2%, the most since October 2. 

The announcement follows a Sunday Times report that the company appointed a forensic-law firm to investigate allegations made by a whistleblower about her leadership, the Johannesburg-based newspaper said December 1.

Exxaro said Wednesday it has asked ENS to conduct the probe.

Tsengwa took over as Exxaro’s first woman CEO in August 2022 after heading its coal business. She was elected president of the Minerals Council of South Africa in June.

Her suspension comes as Exxaro looks to further diversify away from coal, with its production of the dirtiest fossil fuel expected to decrease in the 2024 financial year.

After a failed attempt to buy a copper mine last year, the company is considering investing in manganese.

Exxaro said the board has appointed Finance Director Riaan Koppeschaar as acting CEO.