Mining

Big boardroom battle at top South African company

Suspended Exxaro CEO Nombasa Tsengwa – with the support of hundreds of employees – is fighting to retain her top position following her suspension in December last year.

After heading its coal business, Tsengwa became Exxaro’s first female CEO in August 2022. In June last year, she was also elected president of the Minerals Council of South Africa.

In December, Tsengwa was placed on precautionary suspension with immediate effect, pending the outcome of an independent investigation into allegations related to workplace conduct and governance practice. 

“The board believes that this decision is in the best interests of both the company and Dr Tsengwa,” Exxaro said via SENS.

“While on suspension and for the duration of the investigation, Dr Tsengwa will step back from all executive and Exxaro board duties.”

The company said a reputable law firm, ENS, will conduct an independent investigation. 

“The board takes any such allegations and resultant investigations very seriously but makes no presumption as to its conclusion,” it said. 

“The company will be guided by the outcome of the investigation before taking the appropriate action, if any.”

Earlier this month, news broke that Tsengwa filed a lawsuit requesting that her suspension be declared unlawful and lifted. 

News24 reported that the case, filed with the Pretoria High Court, is scheduled to be heard on 28 January.

In addition, the publication reported that the court agreed to seal the files to prevent certain confidential information from becoming public.

Business Times also reported that Exxaro “has received an online petition created by an anonymous user of an online petition platform, expressing support for the suspended CEO.” 

The publication said the petition has 129 supporters, but their identities and status cannot be verified.

City Press reported that discontented Exxaro employees, including senior managers with over 20 years at the company, have accused the company’s board of interference and divisive conduct, creating a toxic work environment.

These employees demanded Tsengwa’s reinstatement, claiming the board is protecting the company’s head of coal, Kgabi Masai, whose position is crucial for Exxaro’s logistics and coal transport operations. 

Masai is also under suspension pending a separate investigation.

Suspended Exxaro CEO Nombasa Tsengwa

Exxaro’s board denied the employees’ claims, telling City Press that if the company receives material allegations or identifies material issues related to conduct, performance or governance, it will conduct an appropriate, thorough and independent investigation. 

Tsengwa started her career in the mining industry in 2003, joining Kumba Resources as the general manager for safety, health, and the environment. 

With the unbundling of Kumba and the formation of Exxaro Resources, she was appointed the executive general manager of safety and sustainable development. 

In 2010, she became the regional general manager of the coal-tied collieries business, overseeing three underground and four opencast operations. 

In 2015, she served as the company’s acting executive head of coal operations before formally assuming the role in May 2016. 

She held this position for four years before being appointed to a new division that expanded her coal and ferroalloys portfolio to include new low-carbon minerals. 

In March 2021, she was appointed CEO Designate, taking over as CEO on 1 August 2022, following Mxolisi Mgojo’s retirement. 

In her career, Tsengwa has received several accolades, including the Standard Bank Businesswoman of the Year Award in 2017. 

Her suspension came as Exxaro is looking to diversify further away from coal. Its production of the dirtiest fossil fuel is 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.

Tsengwa has also been accused of failing to implement Exxaro’s strategy to diversify away from coal.

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