Nombasa Tsengwa

THE fortunes of coal producer Exxaro Resources have been mixed under Tsengwa. There were reports in late 2024 of an exodus of senior staff, including its head of coal, in the face of a “culture of fear” over which she presided – reports which chair Geoffrey Qhena denied. In December she was temporarily suspended to accommodate an investigation into her work conduct and governance practices. Tsengwa has since fought back: she lodged a claim with the Pretoria High Court, requesting her suspension be declared unlawful. A petition has also been launched by a company insider demanding her reinstatement. 

There have been other question marks over her management, however; pointedly, her failure to diversify Exxaro’s asset base – a pressing concern for coal producers globally as the green energy transition heats up. Exxaro said in 2021 that it wanted to expand into manganese, copper and bauxite. It was shortlisted for the Khoemacau copper mine in Botswana in 2023 but got beat to that punch by China’s MMG. This has fuelled concerns that the cautious Tsengwa is not a deal-maker. 

In October 2024, she told Bloomberg that Exxaro was targeting a South African manganese asset. Can that deal still be expected to happen this year? RMB Morgan Stanley analysts have said that if it were not for uncertainties around mergers and acquisitions the investment case for Exxaro would be “very strong”. Exxaro is also one of several South African coal producers that face a class action suit launched by human rights lawyer Richard Spoor that seeks compensation for miners who contracted lung disease from coal mine dust.