The Battle for Leadership: Nombasa Tsengwa’s Fight to Remain Exxaro CEO

Dr. Nombasa Tsengwa, a trailblazing leader in South Africa’s mining industry, is in the midst of a high-stakes legal battle to reclaim her position as CEO of Exxaro Resources, a coal mining giant valued at R55 billion. Tsengwa, who took over as CEO in August 2022, was placed on precautionary suspension in December 2024 due to allegations concerning workplace conduct and governance practices.

The case, expected to reach the Pretoria High Court on January 28, 2025, has sparked widespread attention, drawing both criticism and support from employees and industry observers.

A Stellar Career in Mining

Dr. Tsengwa began her mining career in 2003 as General Manager of Safety, Health, and Environment at Kumba Resources. When Exxaro Resources was formed, she rose through the ranks, eventually taking over as CEO Designate in May 2021 and officially stepping into the role in 2022.

Throughout her career, she has earned numerous accolades, including the Standard Bank Businesswoman of the Year Award in 2017 and the title of Africa’s Most Influential Woman in Business and Government – Mining Industry Category in 2018.

Her academic credentials are equally impressive, with a PhD in Agronomy from the University of Maryland and executive development training from INSEAD in France.

The Allegations and Suspension

Dr. Tsengwa’s suspension, announced by Exxaro’s board, was accompanied by an investigation led by ENS, a prominent law firm. Finance Director Riaan Koppeschaar has since taken over as acting CEO.

The allegations have created divisions within the company, with employees accusing the board of fostering a toxic work environment and protecting other suspended executives, including the head of coal, Kgabi Masai.

Employee and Public Support

An online petition demanding Tsengwa’s reinstatement has gathered close to 130 signatures, reflecting growing discontent among employees. Senior managers, some with over two decades of service, have openly criticized the board’s decisions, arguing that Dr. Tsengwa’s leadership is crucial for Exxaro’s future.

Exxaro’s Strategic Shifts

The turmoil comes at a pivotal time for Exxaro, as the company seeks to transition away from coal and expand into low-carbon minerals like manganese, a key component in electric vehicle production. However, challenges in diversification, including a failed copper mine acquisition, have underscored the difficulties of such a transformation.

As the Pretoria High Court prepares to hear her case, Dr. Tsengwa’s fight for reinstatement highlights deeper issues within corporate governance and leadership dynamics in South Africa’s mining sector.

The outcome will not only determine her future at Exxaro but may also set a precedent for addressing workplace culture and governance in the broader industry.

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