E&T Minerals: the experts in African commodities, logistics, and business practices

E&T Minerals is a SA-based multinational commodity trading and investment firm specialising in coal and chrome. The company was founded by CEO Emmanuel Ngulube and COO Daniel Eyre in 2013.

The company brings a deep knowledge of African commodities, logistics and business practices to its clients.

During the recent state of the nation address, President Cyril Ramaphosa announced the restructuring of the Transnet Freight Rail by creating a separate infrastructure manager for the rail network. E&T Minerals welcomes this move as it will have a positive effect on business processes which will bolster its pit-to-port solutions.

The company is in the final stages of securing more than R4.5bn of external funding to use as trade finance, purchase rail infrastructure and rolling stock, and refurbish dormant rail wagons and locomotives.

The coal business 

Companies that have been in the coal business for a long time, such as E&T Minerals, are not fazed by the recent decline in global thermal coal prices from 2022's peaks.

E&T Minerals made a windfall profit in 2022 by shipping its first export coal cargo when prices touched an all-time high, and its “lean and mean” operating structure will withstand market cycles.

The company has also been diversifying out of coal and developing opportunities in chrome and lithium.

With 11 employees and two contractors, E&T’s fixed expenses are low. Most of its operating expenses, such as shipping and warehousing, are variable, depending on the cargoes it moves. The group is aiming to ramp up operations to ship a cargo of coal to the export market every two months.

Management’s plan to manage efficiencies

E&T Minerals works towards creating sustainable capital solutions for trusted miners and coal producers. The company sources a variety of coal qualities (coal, anthracite and duff) from big and small mines to meet client specifications. It diligently assesses all its partners at every level of the supply chain to ensure they have the financial and production capability to fulfil customers’ requirements. The financial position of off-takers is also assessed to manage risks.

An efficient logistics chain is key to meeting customer requirements. Unfortunately, the underperformance of Transnet’s ports and rail network has resulted in huge opportunity costs for the SA minerals industry in recent years. Though the company is forced to truck coal when it is impossible to rail it, E&T’s preference is to use rail because of its efficiency.

E&T is open to joining a partnership that would run a coal line, with a Transnet concession, and junior miners with port facilities. 

E&T is targeting economies of scale. Its goal is to own 14% of SA’s total pit-to-port value chain. The company is acquiring its own mine that will ensure maximum productivity and create employment opportunities for the local community.

Even as the world moves towards a goal of net-zero greenhouse gas emissions, coal will remain a primary energy source in power generation for the foreseeable future.

Energy security and reliability lies at the heart of global energy leaders and most countries reverted to coal during the 2022 energy crisis — as the commodity remains essential to power generators in more than 80 countries.

The cost to run coal-fired power plants is cheap in comparison with other power-generation projects — which is an important consideration for developing economies. This will change in the long run, however, as the demand for coal grows.

Mineral resources 

Ramaphosa also announced that R1.5-trillion will be invested in the economy over the next five years towards renewable energy, electrical vehicles and hydrogen fuel cells. While coal remains E&T’s core business, management has a long-term vision to diversify its minerals portfolio and geographic reach.

It has an agreement with a consortium in the North West to develop and mine land which is known to have chrome deposits. E&T is scrutinising opportunities in Zambia, in line with its ambition to acquire lithium and copper assets, to service the electric vehicle market of the future.

This article was sponsored by E&T Minerals.