Bloomberg News | December 4, 2024 |
Nombasa Tsengwa, CEO of Exxaro. Credit: Exxaro Resources via LinkedIn
South African coal producer Exxaro Resources Ltd. has placed chief executive officer Nombasa Tsengwa on precautionary suspension until an investigation into allegations over her conduct is concluded.
The claims relate to “workplace conduct and governance practice,” the company said in a statement to the Johannesburg bourse Wednesday. The stock fell as much as 5.2%, the most since Oct. 2.
The announcement follows a Sunday Times report that the company appointed a forensic-law firm to investigate allegations made by a whistleblower about her leadership, the Johannesburg-based newspaper said Dec. 1. Exxaro said Wednesday it has asked law firm ENS to conduct the probe.
Tsengwa, who declined to comment, took over as Exxaro’s first woman CEO in August 2022 after heading its coal business. She was elected president of the Minerals Council of South Africa in June.
Her suspension comes as Exxaro looks to further diversify away from coal, with its production of the dirtiest fossil fuel expected to decrease in the 2024 financial year. After a failed attempt to buy a copper mine last year, the company is considering investing in manganese.
The board has appointed finance director Riaan Koppeschaar as acting CEO, Exxaro said.
(By Paul Burkhardt)
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