EXXARO Resources said on Monday it had reached a separation agreement with Kgabi Masia, head of coal for the company since March, 2022.
“This development will not affect the company’s operations, as Mr Mervin Govender will continue in his role as acting chief coal operations officer,” the company said in a statement. Exxaro was focused on “the timely appointment of permanent candidates to call critical roles,” it added.
The agreement with Masia was reached on April 24. Masia is the subject of a board-sanctioned investigation by law firm Bowmans.
Masia was one of the key employees suspended by former Exxaro CEO Nombasa Tsengwa. Tsengwa was subsequently suspended by Exxaro amid allegations of bullying and intimidation in the organisation. Up to nine executive and senior employees had left the company in the fallout.
Tsengwa, who resigned in February, was replaced by Ben Magara, the former CEO of Lonmin and a non-executive at Exxaro Resources.
Magara has recommitted Exxaro towards a long-standing diversification strategy, saying on March 13 that he would use the group’s coal production “to expand our portfolio towards the critical low-carbon minerals essential for the future”.
Exxaro said previously it was setting aside up to R15bn for an acquisition. As of December 31, the group had net cash of R16.3bn (excluding net debt in its energy division), slightly up from R14.8bn at the same point in 2023.
It reported R7.3bn (R30.16/share) in headline earnings for the 12 months ended December represnting a 36% year-on-year decline partly owing to lower export coal prices.
