South African coal producer, Exxaro Resources, has appointed veteran mining executive Ben Magara as its new chief executive officer (CEO) to lead the company’s push into battery metals.
Magara, a former CEO of platinum miner Lonmin, will assume the role in April, replacing acting CEO Riaan Koppeschaar, who will return to his position as finance director.
In a statement on Wednesday, Exxaro’s chairman Geoffrey Qhena said the appointment comes at a critical time as the company seeks to diversify beyond coal amid declining profits.
Exxaro, one of South Africa’s largest coal miners, has been exploring investment opportunities in minerals essential for the green energy transition, particularly manganese and copper.
The company has been working on acquiring manganese assets in South Africa but has faced challenges in securing deals due to high valuations set by sellers, Exxaro’s chief growth officer Richard Lilleike mentioned.
“We’ve made good progress on manganese acquisitions, but it has taken longer than expected because sellers place a significant value on these mines,” Lilleike said.
Copper is also a key part of Exxaro’s strategy, with the company shifting its focus toward early stage exploration projects, particularly in Zambia.
This change follows Exxaro’s unsuccessful bid for Botswana’s Khoemacau copper mine in 2023, which was acquired by China’s MMG.
“Our strategy has pivoted slightly to look at exploration opportunities,” Lilleike stated. “Getting in earlier in copper-rich regions like Zambia will allow us to build the next major copper company.”
Exxaro reported a drop in profit to 7 billion rand ($381.44 million) in 2024, down from nearly 11 billion rand the previous year, reflecting lower coal prices.
As a result, the company reduced its dividend payout from 10.10 rand per share to 8.7 rand per share.
Magara steps in amid this financial downturn and a leadership shake-up.
He succeeds Nombasa Tsengwa, who resigned after being suspended by the board while under investigation for governance related matters.
Magara, who led Lonmin before its acquisition by Sibanye Stillwater in 2019, is expected to bring his experience in managing mining transitions and strategic growth to Exxaro as it seeks to expand beyond its traditional coal business.
