Exxaro appoints Zimbabwean mining tycoon as chief executive, declares $165 million dividend

Key Points

• Exxaro appoints Ben Magara as CEO, succeeding acting chief Riaan Koppeschaar, as it navigates a strategic shift towards diversified energy and minerals.
• The company reported a 5% revenue increase to $2.21 billion, but EBITDA declined 22% due to rising costs and lower coal production, leading to a 14.3% dividend cut.
• Exxaro’s renewable arm, Cennergi, produced 725 GWh of wind power and is developing a 68 MW solar project to reduce emissions by 161 kilotonnes annually by 2025.

Exxaro Resources, the Gauteng-based diversified mining group, has named Zimbabwean mining tycoon Bennetor (Ben) Magara as its next CEO, effective April 1, 2025. Magara will take over from acting CEO Riaan Koppeschaar, who will return to his role as Finance Director.

His appointment follows a fast-tracked selection process after the resignation of former CEO Nombasa Tsengwa. The South African executive stepped down in December 2024 after being placed on precautionary suspension pending an independent investigation into governance and workplace conduct concerns.

From Lonmin to Exxaro: Ben Magara’s leadership journey

A veteran mining tycoon engineer with more than 35 years of experience, Magara has built a reputation for steering companies through complex transitions.

He previously held leadership roles at Anglo American Coal and served as CEO of Lonmin Plc, where he played a key role in stabilizing the struggling platinum producer before its eventual sale to Sibanye Stillwater. That deal created the world’s largest platinum group metals (PGM) producer.

After leaving Lonmin, Magara founded Africa Mining & Metals Group (AMMG), focusing on battery and precious metals. He has also advised mining operations in the Democratic Republic of Congo’s Copperbelt. Currently an independent non-executive director at Weir Plc, a FTSE 100 company, he will step down from the board of Grindrod Limited when he assumes leadership at Exxaro.

Magara isn’t new to Exxaro—he has played a key role in shaping the company’s diversification strategy as chairman of its Investment Committee. Now, he takes the helm at a critical time, as Exxaro transitions from a coal-focused business to a broader minerals and renewable energy company.

Exxaro’s chairperson praises Koppeschaar, welcomes Magara as CEO

Exxaro’s Chairperson, Geoffrey Qhena, expressed appreciation for Riaan Koppeschaar’s leadership as Acting CEO, highlighting his steady hand during a period of transition. Koppeschaar, who will now refocus on his duties as Finance Director, was credited with maintaining Exxaro’s strategic direction through a challenging landscape.

On Magara’s appointment, Qhena said, “Ben brings a wealth of mining leadership, global board experience, and a reputation for integrity. His expertise in operational excellence and strategic transformation will be invaluable as Exxaro continues its evolution into a diversified minerals and renewable energy solutions business.”

Reacting to his appointment, Magara said he was eager to lead Exxaro through its next chapter. “I am honored to take on the role of Exxaro CEO and excited about the opportunity to build on our strong coal foundation as we expand into critical low-carbon minerals essential for the future,” he said. “As a Non-Executive Director and chairman of the Investment Committee, I’ve been closely involved in Exxaro’s diversification strategy. I look forward to working with the team to drive sustainable growth and create lasting value for all stakeholders.”

Exxaro trims dividend as energy shift impacts earnings

Even as it moves forward with leadership changes, Exxaro is facing financial headwinds. The company, which operates across South Africa, Europe, the U.S., and the DRC, has cut its dividend as it grapples with rising costs and the shift toward energy transition minerals.

Magara will step in as CEO amid mixed results for 2024. Exxaro’s revenue climbed 5 percent to R40.7 billion ($2.21 billion), boosted by a 37 percent jump in coal exports to 7 million tonnes. However, EBITDA fell 22 percent to R10.4 billion ($565.79 million), pressured by cost inflation and a 7 percent decline in total coal production.

In response, Exxaro declared a final dividend of R8.66 ($0.471) per share—down 14.3 percent from the previous year—amounting to R3.02 billion ($164.47 million). The company also approved a R1.2 billion ($65.2 million) share buyback, signaling confidence in its long-term strategy.

Meanwhile, its renewable energy unit, Cennergi, is making strides, generating 725 GWh of wind power. A new 68 MW solar project at the Grootegeluk mine is also underway, expected to cut emissions by 161 kilotonnes annually when completed in 2025.