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Coal miner Exxaro names new CEO to drive search for battery metals
Exxaro Resources Appoints New CEO Amid Strategic Shift Towards Battery Metals
In a decisive move to navigate the evolving energy landscape, Exxaro Resources has appointed seasoned mining executive Ben Magara as its new CEO. This transition comes on the heels of Nombasa Tsengwa’s departure, signaling the South African coal miner’s commitment to expanding its focus on battery metals essential for green technology developments.
Leadership Change at Exxaro
Ben Magara, previously the CEO of Lonmin and an executive at Anglo American, will officially take the reins as CEO in April, succeeding acting CEO Riaan Koppeschaar, who will return to his finance directorship. Exxaro’s chairman, Geoffrey Qhena, emphasized the pressing challenges ahead, noting the company’s recent financial struggles attributed to falling coal prices. The appointment is part of a broader strategy to pivot towards manganese and copper assets, critical for the ongoing transition towards renewable energy.
Focus on Battery Metals and Green Transition
Exxaro’s shift towards acquiring manganese and copper comes in response to the increasing demand for materials vital to battery production and electric vehicles. Chief Growth Officer Richard Lilleike informed Reuters that the company has experienced significant progress in acquiring manganese assets within South Africa, despite challenges in negotiations stemming from high seller expectations.
Lilleike indicated a strategic pivot towards early exploration opportunities in regions like Zambia, where competition is fierce due to interest from major players, particularly from China. Exxaro’s recent experience in missing out on Botswana’s Khoemacau copper mine to MMG highlights the challenges posed by formidable competitors in the mining sector.
Financial Overview
Exxaro’s financial performance has been under pressure, reflecting broader trends in the fossil fuel market. Profits fell to approximately 7 billion rand (about $381 million) in 2024, down from nearly 11 billion rand the previous year. This downturn led to a reduction in dividends, reflecting a need for financial recalibration amidst changing market conditions.
Vision for Transformation
Magara, who led Lonmin through its acquisition by Sibanye Stillwater in 2019, is stepping into his role at Exxaro during a pivotal moment. His leadership will be crucial as the company navigates the complexities of transitioning from traditional coal mining to more diversified and sustainable mining operations. The company is positioning itself to not only shore up its financial base but also to align with global trends towards decarbonization.
Conclusion
The appointment of Ben Magara as Exxaro’s CEO represents a strategic pivot towards securing battery metals amidst declining coal profitability. As the mining industry adjusts to the shifting energy landscape, Exxaro’s focus on manganese and copper could play a significant role in shaping its future and contributing to the global energy transition. This leadership change comes at a critical time, as the demand for sustainable resources intensifies. Under Magara’s guidance, Exxaro aims to embrace this evolving market trajectory while reinforcing its competitiveness in the regional and global arenas.