Exxaro Resources’ share price fell 2.8% to R166.61 today after the company announced that the board of directors has placed its group CEO, Dr. Nombasa Tsengwa, on precautionary suspension with immediate effect.
In Tsengwa’s place, Exxaro appointed its longstanding finance director, Riaan Koppeschaar, as acting CEO.
Koppeschaar, a near 30-year veteran of the mining industry and a Chartered Accountant who has previously held various managerial roles at Iscor and Kumba Iron Ore, will in the meanwhile continue as finance director.
Exxaro said Tsengwa was suspended pending the outcome of an independent investigation into allegations related to workplace conduct and governance practice.
The board said it believed that this decision was in the best interests of both the company and Tsengwa.
While on suspension, and for the duration of the investigation, Tsengwa will step back from all executive and Exxaro board duties.
Exxaro said the independent investigation will be conducted by a reputable law firm, ENS, as the board takes any such allegations and resultant investigations very seriously though it 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.
Exxaro chair, Geoffrey Qhena, said the board was 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.
“Riaan Koppeschaar has deep knowledge of the company and industry and is well placed to act as CEO having spent the last eight years as Exxaro’s finance director. He will be supported by a highly experienced management team, many of whom have been with the company for decades, and a seasoned board. Together they are well placed to stabilise and lead the company by focusing on meeting customer demand, driving safe, disciplined and efficient production, while creating value for our stakeholders,” Qhena said.
“The Board and management team will continue to 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 that will thrive in a low-carbon future.”
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