[miningmx.com] – Sipho Nkosi is expected to step down as CEO of Exxaro Resources with an announcement from the coal, mineral sands and iron ore group thought to be imminent, according to a market source.
Nkosi’s resignation comes roughly 12 months ahead of the unravelling of an empowerment structure in which he, and colleague Mxolisi Mgojo, are members. Exxaro declined to comment on the speculation.
Nkosi was appointed CEO of Exxaro Resources in September 2007 following the resignation of Con Fauconnier. The two were directors of the company at its founding when it was unbundled from Kumba Iron Ore in 2006.
Wim de Klerk, CFO of Exxaro Resources, would appear to be the shoo-in for Nkosi as he takes the lead role in answering questions at Exxaro’s results announcements and other presentations.
A market source, however, said that Mxolisi Mgojo, head of Exxaro’s coal business, was the more likely candidate to take the reins.
In some respects, Nkosi’s resignation and even possible retirement would be no great surprise as the group has commented recently that it was looking at installing a new BEE structure to replace the existing one of which Nkosi is part.
Commenting on Exxaro’s BEE structure, De Klerk said on March 5 that the group would like to continue “a significant BEE structure” from 2016 as it provided credits to a number of other entities such as Kumba Iron Ore.
“Actions are in place,” De Klerk said. “Already, we have appointed advisors and the process in place where over next six months we will look at all the options.
“There are people that would like to exit in 2016, but there are also a row of people that would like to be invited into a new structure. It’s something that we will work on tirelessly,” he said.
Nkosi and Mgojo, have shares in Dreamvision Investments (formerly Eyesizwe) which owns 54% of the Exxaro’s BEE Holdco which, in turn, owns 52% of Exxaro – a shareholding worth roughly R18.3bn at today’s share price.
By 2016, however, the 10-year lock-in agreement for the principals of the BEE Holdco – called Main Street 333 – expires which potentially would allow Mgojo and Nkosi to retire wealthy men.
