Major South African miner gets new CEO after boardroom battle

South African coal producer Exxaro Resources announced the appointment of its new CEO, Ben Magara, who will step in to the role from April this year.

Exxaro announced Magara’s appointment on Thursday, 13 March 2025, saying he will succeed acting CEO Riaan Koppeschaar, who will continue in his role as Finance Director.

Magara, the former CEO of platinum miner Lonmin, will take over at Exxaro on 1 April 2025.

Exxaro said he is a qualified mining engineer and highly regarded mining veteran with over 35 years of industry experience in both soft and hard rock mining at underground and open pit operations. 

The company explained he is renowned for driving operational excellence and providing strategic leadership at multiple large mining operations.

This has included positions at Anglo American Coal and, most recently, the stabilisation, restructuring, and turnaround of Lonmin and its subsequent disposal to Sibanye Stillwater, creating the world’s largest PGM producer.

In 2020, Ben founded Africa Mining & Metals Group, a mining and advisory company focused on battery metals and precious metals. 

He has also spent several years in the Democratic Republic of Congo’s mining industry, advising in the Copperbelt. 

He is, and will remain, an independent non-executive director at Weir, a FTSE100 company, and will step down from the board of Grindrod as of 1 April 2025.

Exxaro Chairman Geoffrey Qhena said Magara brings a wealth of mining leadership, global board, and governance experience to Exxaro, along with a reputation for impeccable integrity. 

“We are confident Ben will stabilise the organisation and continue to drive forward our growth and sustainability strategy, particularly with the knowledge he brings from being chairman of our Investment Committee,” he said.

“Ben’s deep experience as an engineer, mine manager, corporate leader, and listed company CEO will all be invaluable to Exxaro as we continue to maximise the value of our current assets while accelerating our prudent transition into a diversified minerals and renewable energy solutions business.”

Qhena also thanked Koppeschaar, whom he said has played a sterling role as acting CEO. 

“His professionalism, leadership and impact are much appreciated. Riaan will now revert to his role as finance director,” he said.

Boardroom battle

Magara’s appointment comes just over a month after former Exxaro CEO Nombasa Tsengwa resigned following a probe into allegations over her conduct.

Tsengwa was placed on precautionary suspension in December 2024 over claims surrounding her workplace conduct and governance practice.

In addition to being accused of bullying, Tsengwa received a charge sheet accusing her of conflict of interest and breaches of duty of good faith.

Exxaro appointed law firm ENS to undertake an independent investigation, which Tsengwa claimed “demonstrates that there is a predetermined outcome, which I refuse to subject myself further to.” This led to her resignation in February this year.

Prior to resigning, Tsengwa filed a lawsuit requesting that her suspension be declared unlawful and lifted.

However, this case was struck off the urgent roll, and Tsengwa was ordered to pay the costs of two legal counsels.

Despite complaints about her workplace conduct, many Exxaro employees allegedly supported Tsengwa following her suspension.

Business Times reported that Exxaro had “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 could not be verified.

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

These employees allegedly 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.

However, 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.

This boardroom battle 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.