Anglo American Plc has appointed a woman CEO for the first time to run its South African iron ore business as the mining giant changes its top management of commodities.
MPumi Zikalala, currently De Beers' managing director, will take over as CEO of Kumba Iron Ore Ltd. January 1, Anglo said in a statement on Tuesday. She will replace Temba Mhwanazi, who will take over the head of wholesale from Seamus French, who is leaving the company.
The change is taking place as the mining industry continues to be male dominated, despite efforts by companies, including the BHP Group, to increase the presence of women in their executive leadership. Zikalala's appointment comes after Anglo, a legendary mining company with roots in South Africa, last year appointed Natasha Viljoen as CEO of its platinum group metals business, Anglo American Platinum Ltd.
“I am also delighted that along with Nolita Fakude as Chair of our South Africa Board and Natasha Viljoen as CEO of our PGM business, we will have three women of this high caliber to lead our broad interests in South Africa,” said Anglo. This is stated in a statement by CEO Mark Cutifani.
Zikalala, 42, was appointed to lead De Beers' operations in South Africa and Canada in 2019. She has been with the diamond division since 2007.
Despite Zikalala's lack of experience in wholesale merchandise, Zikalala's experience at Anglo, extensive management experience and engineering qualifications “should offset any immediate fears of investors,” said Emmanuel Mungeri, an analyst at Bloomberg Intelligence.
China's demand for high quality Kumba iron ore has made it one of Anglo's most profitable divisions. While the business has benefited from rising prices in recent years, Zikalala is faced with the challenge of finding new deposits and expanding Sishen's giant quarry in South Africa's Northern Cape.
Kumba shares fell 2.1% in Johannesburg, extending this year's fall to 23%.
According to Anglo, Ruben Fernandez, CEO of Base Metals, will also take charge of Brazil's iron ore and nickel mining operations. He will oversee Quellaveco's copper smelter in Peru when it goes online.
