E&T Minerals is looking for long-term partnerships

Junior miners, especially those trying to develop coal projects, have always battled to secure the necessary funds to grow. 

E&T Minerals, which started as a coal trader and grew to become an exporter with interest in coal projects over the past decade, understands this dilemma.

Having secured trade finance backing from a Monaco-based trading house, E&T is inviting partnerships with coal suppliers, transporters, ports and finance institutions. It is ready to co-operate with companies experiencing a shortage of commodities and those that need trade finance. 

“Companies that trade coal are experiencing significant challenges in raising working capital and trade finance,” says E&T co-founder and CEO Emmanuel Ngulube.

“We have access to funders who are willing to provide finance for coal transactions. If we identify a legitimate opportunity that satisfies our risk vs reward trade-off and our management team has the skills to execute, we will contribute to the transaction, regardless of the commodity in question.”

E&T Minerals’ track record 

E&T Minerals was established in September 2013 and is in its 10th year of operations. 

The company's pivotal moments over the years have solidified its position in the mining industry. 

In 2013/2014, it entered a deal securing NuCoal as a preferred supplier for Sappi Paper. In a co-operation agreement with HMS Bergbau, it built its domestic coal desk by signing contracts for 600,000Mt to various local trading houses such as Lafarge SA and Sephaku Cement.

This partnership also led to a domestic supplier contract with AMR Mining and a full offtake agreement for small optimum pit, Kroomdraai, securing 250,000Mt of supply for HMS and AMR respectively. HMS's volumes increased by 40% and an additional 200,000Mt in 2015 for its export market business.

In 2016, E&T Minerals signed a contract with a US-based international mining house for 640,000Mt of supply, selling the secured material to another major international trading and mining house. As a result, E&T created cohesion between junior mines and coal processors in the Witbank region's value chain by marketing the often unmarketable five seam coal. 

In 2017, the innovation continued as the company signed a supply contract for 420,000Mt of 4,800 kcal material with an India-based trading house. 

In 2018, E&T increased their staff to see a growth in efficiency and business processes, in preparation of complex transactions. In the same year, the company raised working capital funding for a junior Ermelo coal mine, La Brie Mining, to secure 1.2 million tonnes offtake for the life of the mine.

In 2019/2020, E&T secured funding for two existing coal mines to the combined value of R80m. With its trading expertise, E&T helped create a coal marketing platform with a minimum capacity of 400,000Mt a year. 

In 2021, E&T secured a long-term coal sale agreement with a Swiss-based junior commodities trader. E&T signed on to mine and market a chrome mine owned by the Royal Bafokeng family.

The company also expanded its social investment portfolio and built a 4IR technology centre in partnership with German tech company Software AG, at Tsiki Naledi Secondary School in Hendrina, Mpumalanga.

In 2022 E&T:

• Completed its maiden vessel of 75,000 tonnes of RB1 coal;
• Secured 8Mt of mineable and exportable coal through a joint venture with an experienced local junior miner;
• Established long-term sale agreements with a European power generator and coal trader — with a sales projection of more than 1.1Mt over 12 months,
• Secured contracts for throughputs at the multipurpose terminal in Richards Bay and a joint venture with stakeholders at Maydon Wharf terminal at the Durban Port; and
• Secured an estimated 150,000 tonnes to be moved between the multipurpose terminal and Durban Port respectively.

In 2023, E&T is looking for partners who want to establish long-term relationships and lend their time, expertise, capital and network to create an end-to-end value chain and domestic and international trading lines. 

These partners are not limited to coal traders but traverse the value chain.

The company has established contracts with accredited laboratories which adhere to international standards of quality analysis, has access to port storage and shipping and forwarding services, and has partnerships with the right financiers and much-needed foreign direct investment for the country.

These partnerships have allowed E&T to prove its ability to achieve a turnkey pit-to-port solution through a consolidation of the value chain. The company seeks to bolster this position through trade and infrastructure capital and sustainable trading models. 

Bringing advisory and logistics capabilities to its partners

“We often work with international organisations without a physical presence in SA and many SA organisations approach them with opportunities. Our partners benefit by working with us because we will verify, analyse and advise on the opportunities presented.”

Ngulube says another well-known challenge in the industry is that Sub-Saharan Africa is experiencing huge logistical issues in transporting coal. An associated company of E&T is engaging railway companies in Zimbabwe, Botswana and Mozambique to improve the logistics within the region.

Seasoned leadership

E&T’s two founders, Emmanuel Ngulube and Daniel Eyre, had no mining experience when they started the company. They grew the business by leveraging relationships with partners, from junior miners to blue-chip companies, helping to bridge the divide. 

With strong networks in SA’s junior mining sector, and a “go-getter” attitude, Ngulube and Eyre have helped to encourage a number of start-up businesses.

Meet the E&T Minerals team at Mining Indaba 2023, on at the Cape Town International Convention Centre until February 9. 

This article was paid for by E&T Minerals.