In a significant leadership shift, Exxaro, South Africa’s R53 billion mining giant, has appointed seasoned mining executive Ben Magara as its new CEO. Magara will take the helm on April 1, 2025, succeeding Nombasa Tsengwa, who resigned in February amid allegations of poor workplace conduct and governance practices.
Magara, a qualified mining engineer with over 35 years of experience, is renowned for his strategic leadership in both hard and soft rock mining operations. His appointment comes at a critical juncture for Exxaro as it seeks to diversify away from coal and expand into low-carbon minerals.
A Proven Leader for Challenging Times
Magara’s extensive experience includes stabilizing and restructuring Lonmin, which was later sold to Sibanye Stillwater, creating the world’s largest platinum group metals (PGM) producer. He is also the founder of Africa Mining & Metals Group, a consultancy focused on battery and precious metals, and has advised mining operations in the Democratic Republic of Congo’s Copperbelt.
Exxaro Chairman Geoffrey Qhena expressed confidence in Magara’s ability to lead the company: “Ben Magara brings a wealth of mining leadership, global board, and governance experience to Exxaro, along with a reputation for impeccable integrity. We are confident he will stabilize the organization and drive forward our growth and sustainability strategy.”
Diversification and Sustainability at the Core
Exxaro, heavily reliant on coal, is actively pursuing a diversification strategy to reduce its dependence on the world’s most polluting fossil fuel. Magara, who has served as Exxaro’s Non-Executive Director and Investment Committee chairman, emphasized his commitment to this vision.
“This is in line with our diversification strategy, which I have been part of,” Magara said. “I believe this strategy will enable us to deliver enhanced value to all our stakeholders while balancing enduring profitability with environmental and social sustainability.”
Challenges Facing Exxaro
Magara’s appointment follows a turbulent period for Exxaro. Former CEO Nombasa Tsengwa resigned after failing to have a suspension lifted. Tsengwa was placed on precautionary suspension in December 2024 over allegations of poor workplace conduct and governance practices, which she claimed were unfairly investigated.
The company has also faced financial headwinds. In its 2024 financial results, Exxaro reported a 22% decline in group EBITDA to R10.4 billion, driven by a 16% drop in coal EBITDA and weaker performance in other operating segments. Headline earnings fell by 36% to R7.3 billion, with headline earnings per share declining to 3,016 cents.
Despite these challenges, Exxaro’s export coal sales increased by 37% to 7 million tons, thanks to alternative distribution channels and improved Transnet Freight Rail performance. The company’s renewables unit, Cennergi, generated 725 GWh of electricity, with revenue rising 5% to R1.4 billion.
Financial Highlights for 2024
- Group revenue: R40.7 billion (+5%)
- Group EBITDA: R10.4 billion (-22%)
- Headline earnings: R7.3 billion (-36%)
- Final dividend: 866 cents per share (down 144 cents from 2023)
- Total dividends: 2,378 cents per share (up from 2,279 cents in 2023, including a special dividend)
Looking Ahead
Magara’s leadership will be pivotal as Exxaro navigates its transition toward a more diversified and sustainable future. The company aims to leverage its strong coal foundation to expand into critical low-carbon minerals, aligning with global trends toward renewable energy and environmental responsibility.
“We are committed to delivering value to our stakeholders while ensuring long-term sustainability,” Magara said. “This is an exciting opportunity to lead Exxaro into its next chapter of growth and innovation.”
With Ben Magara at the helm, Exxaro is poised to tackle its challenges head-on and capitalize on new opportunities in the mining sector. His proven track record and strategic vision will be instrumental in driving the company’s diversification efforts and ensuring its continued success in a rapidly evolving industry.
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