NUM rejects Ben Magara's appointment as Exxaro CEO

The National Union of Mineworkers (NUM) has strongly opposed the appointment of Ben Magara as the new Chief Executive Officer (CEO) of Exxaro Resources, citing concerns over the legitimacy of the process and alleged conflicts of interest. The union has accused the Exxaro board of failing to engage with them in good faith, despite prior commitments to discussions regarding leadership at the company.

According to NUM Highveld Regional Secretary Tshilidzi Mathavha, the union met with the Exxaro board on February 19, 2025, and had scheduled a follow-up meeting for March 17, 2025, to discuss the ongoing CEO controversy. However, before these discussions could take place, the board unilaterally appointed Magara as CEO.

Mathavha emphasized that NUM, representing over 80% of Exxaro's workforce, had consulted its members regarding the suspension of former CEO Dr. Nombasa Tsengwa. NUM members overwhelmingly supported Tsengwa, arguing that her removal was unjust and politically motivated. The union claims her "sins" were centered around insourcing core business operations within Exxaro, which provided sustainable employment for workers. This approach, according to NUM, was in direct opposition to the board's preference for outsourcing, allegedly for self-enrichment purposes.

"Workers are willing to do anything to have her back at Exxaro," said Mathavha, stating that Tsengwa was widely respected among employees.

NUM has also raised serious concerns regarding Magara's ties to Grinrod, a company in which he holds a directorship. The union alleges that under Magara's influence, Grinrod was unfairly advantaged as the sole service provider for trucking and railing coal from Exxaro's mines to Maputo. The deal, according to NUM, resulted in exorbitant costs and undermined fair competition in the industry.

Additionally, the union claims that Magara was involved in orchestrating Tsengwa's suspension to shield Kgabi Masia from facing scrutiny over allegations of misconduct. These allegations include excessive over-expenditure—reportedly more than 40%—on coal logistics to Maputo. NUM also criticized Masia for delaying the procurement of essential mining equipment, opting instead to rent trucks from obscure Belarusian firms, which allegedly benefited connected companies like Tau Mining.

NUM further questioned Magara's appointment by pointing to his controversial tenure as CEO and Director at Lonmin, where he reportedly disregarded employees' voices, particularly those of women, and presided over job losses. The union fears that under Magara's leadership, Exxaro employees could face similar retrenchments, especially given the company's financial struggles in 2024.

"We have no confidence in his ability to preserve jobs for our members," NUM stated, referencing Lonmin's history under Magara's leadership.

NUM contends that Magara's appointment was pre-planned to conceal the extent of financial mismanagement under Masia's oversight. The union is now calling for Exxaro's shareholders to intervene, arguing that the board is prioritizing its own business interests over the well-being of employees and stakeholders.

"This appointment has indicated the refusal by the Board to listen to us as organised labour. Therefore, we raise this matter as urgent and cannot wait for a Monday meeting after this unfortunate announcement."

The union has vowed to escalate its campaign against Magara's leadership, urging immediate action to address corruption and governance concerns at Exxaro.