JOHANNESBURG (miningweekly.com) – Dr Nombasa Tsengwa, the CEO of Johannesburg Stock Exchange-listed Exxaro Resources, has been placed on precautionary suspension with immediate effect, pending the outcome of an independent investigation into allegations related to workplace conduct and governance practice.

The board stated in a stock exchange news service announcement on Wednesday, December 4, that it believes the decision to be in the best interests of the company and Tsengwa.

While on suspension, and for the duration of the independent investigation being conducted by law firm ENS, the suspended CEO will step back from all executive and Exxaro board duties.

Regarding the allegations related to workplace conduct and governance practice, the board stated that it takes any such allegations and resultant investigations very seriously but makes no presumption as to its conclusion.

The company would, the board added, be guided by the outcome of investigation before taking the appropriate action, if any.

Meanwhile, Riaan Koppeschaar, who has been appointed as acting CEO, would continue as FD.

“The board is fulfilling its fiduciary duties by taking decisive steps to act in the best interests of the company and stabilise its leadership, while it conducts an appropriately thorough and independent investigation in line with company values and policies,” stated Exxaro chairperson Geoffrey Qhena, who described Koppeschaar as having a deep knowledge of the company and industry, and being well placed to act as CEO.

Koppeschaar has spent the last eight years as FD and will be supported by an experienced management team, many of whom have been with the company for decades, as well as what is described as a seasoned board.

“Together they are well placed to stabilise and lead the company by focusing on meeting customer demand, driving safe, disciplined and efficient production, while creating value for our stakeholders.

“The board and management team will continue to implement our strategy of maximising the value of our current assets, while undertaking a measured and responsible transition from a coal based to a diversified minerals and renewable energy solutions business that will thrive in a low-carbon future.” said Koppeschaar, who has been FD since 2016, before which he spent ten years as a senior manager in the company.

Koppeschaar has previously held various managerial roles at Iscor and Kumba Iron Ore.

Separately, it can be pointed out that Tsengwa is also the current president of Minerals Council South Africa, the mining industry employers’ organisation which exists to serve 69 corporate members and promote their interests in South Africa.