Exxaro’s new CEO tasked with diversifying into battery metals

Coal producer Exxaro Resources (JSE: EXX) has appointed veteran mining executive Ben Magara as its new top boss, tasking him with speeding up plans to diversify the South African company’s portfolio into battery metals.

Magara, a former chief executive of platinum miner Lonmin who also worked at Anglo American, takes over on April 1. He replaces finance director Riaan Koppeschaar, who served as interim CEO following Nombasa Tsengwa’s resignation. Tsengwa stepped down in February amid controversy over the handling of a probe into workplace conduct allegations against her.

Magara is expected to to lead Exxaro through declining profits caused by lower coal prices while advancing its strategy to acquire manganese and copper assets, crucial metals to the green energy transition, chairman Geoffrey Qhena said in a statement.

Exxaro has struggled to diversify beyond coal. In 2023, it lost out to China’s MMG in a bid for Botswana’s Khoemacau copper mine.

The company also reported on Thursday its 2024 financial results, showing a 32% drop in net income to 9.68 billion rand ($527 million) and a 6.9% decline in coal output. Profit fell to about 7 billion rand ($381 million) from nearly 11 billion the year before, and it cut its dividend to 8.7 rand per share from 10.10 rand.

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