Powering global trade

Enegra enables commodity miners in emerging markets to compete globally, via world-class trading expertise, risk management, logistics, and governance

From Southeast Asia to the world

Enegra partners with mid-tier miners in Southeast Asia by contracting to purchase their production offtake to trade on global commodity markets.

In 2011, Enegra identified an opportunity to apply its expertise in finance, trade and logistics to reduce the risk of sourcing and trading commodities from emerging economies. Applying this approach to the global commodities coal market, but refining our business model for the local Southeast Asian market, we spent several years cementing trusted relationships with mid-tier miners in Indonesia.

 

Over a five-year period engaging with 16 local, mid-tier miners, the success and uniqueness of these relationships resulted in a 1.8 billion tonne Offtake Agreement. Today, this offtake provides us with a robust balance sheet with an audited net asset value of USD 27.98 billion.

 

With our Head Office in Malaysia and subsidiaries in Singapore and Indonesia, this rapid growth was enabled through the development of intellectual property for every step of the commodity life-cycle. Whilst this includes novel, proprietary models for derivative and margin pricing, we believe that the true essence of our IP lies in something greater! That is, our local brand and reputation, with which 16 high quality, mid-tier miners have entrusted us to deliver economic and social outcomes that will set them apart from their global peers for the very first time.

 

Our global commodity trading expertise extends beyond public trading exchanges. We have also successfully marketed and negotiated supply agreements directly with downstream offtakers such as power companies and smelters. This provides Enegra with fixed contracted revenue streams to de-risk our business model.

 

It is this IP that truly brings an enduring impact to both Enegra and local, mid-tier mining communities. Through this unique approach, we will succeed in achieving sustainable economic and environmental, social and governance (ESG) outcomes for all participants in the trade lifecycle, along with community stakeholders, who are the ultimate beneficiaries.

 

The success of this model makes Enegra one of the largest owners of physical commodity offtakes in the world. Equally as important, this means we bring sustainable economic and community outcomes to mid-tier miners who are often exploited on price and margins when operating at suboptimal scale.

EGX Security Tokens

We have tokenised 100% of the equity in Enegra Group Ltd, with equity represented by the T-REX compliant EGX security token issued on the Polygon blockchain (ISIN: MYA159590209).

There are currently 85 million EGX issued to represent the ordinary shares of Enegra Group Ltd. The shares are held by a licensed Trust Company as Nominee on behalf of EGX token-holders, and all rights and distributions are passed on to EGX token-holders, including distributions and voting. As EGX are securities, in order to purchase EGX, investors need to first pass KYC/AML checks and be whitelisted. Once whitelisted, investors can buy and sell EGX.

Our people, the key to our success

Board of Directors

Our board of directors has the full set of skills and experience necessary to develop world-class solutions, and manage a growing global business.

Matthew is an accomplished executive with extensive experience in banking, trade finance, commodity trading and logistics. He has a track record with executive boards formulating strategies and executing on time and within budget.

Prior to Enegra, Matthew worked in Westpac Institutional Banking, managing a portfolio in excess of $500M, broking acquisitions and leveraged buyouts.

Matthew has a B.Com (Banking, Corporate, Finance, and Securities Law).

Eli is a technology and startup expert, with over 25 years hands-on operational and leadership experience in various industries and locations, specialising in the application of disruptive technologies and paradigms to transform organisations and industries - from Aviation in New Zealand to Telecom Services in Africa.

Eli is currently CEO of Blockchain Labs Asia and focused on FinTech, with ventures changing how people work and live, leveraging new technology to get things done – faster, cheaper, easier, better, and in a more people-oriented way.

David has over 30 years of international experience across investment banking, corporate advisory, corporate public relations and capital raising services within the natural resources sector. He is currently CEO of Canamex Gold Corp and a Director of Arizona Silver Exploration Corp, Canadian listed public companies.

David was previously a Sr executive with BAE Systems, focussed on international business development, financing, management and marketing within the UK, the Middle East and Europe. Senior commissioned officer (Engineer and Pilot) in the Royal Australian Air Force.

He has a B.Eng, and Dip. FP.

Jeremy is CPA qualified and has a very strong commodity, treasury and financial markets background having worked 25 + years in a variety of large corporate and banking roles in Australia and the United Kingdom.

Jeremy is the founder and current managing director of Apxium, a financial technology business specialising in invoice financing and payments.

Jeremy has valuable commodity experience from his time jointly managing the worlds largest gold hedging book at Normandy Mining and also trading precious metal at Pru-Bache in the UK. He is also a former treasurer for the South Australian Energy Network (ETSA).

Tony brings over 20 year's experience as a company director and entrepreneur in the UK, and is one of the original shareholders in Enegra.

He is currently Managing Director and co-founder of CVAM Ltd. Incorporated in 2000, CVAM has now grown to be one of the most successful independent companies of its type in the UK, trading in transportation assets across home and export markets, specialising in Africa.

Tony also acts as an advisor to a number of major FTSE100 financial institutions based in the UK, advisong on future residual value risk and exit strategies for their transportation and logistics portfolios.

Management Team

The Enegra Management team has decades of experience working in Southeast Asia and Indonesia in particular, with a focus on mining and hard commodities.

Oliver Scott-Simons was formerly a director and head of Asia FX Correlation Option trading at Barclays Singapore and previously worked a several top tier banks in London spanning 13 years in front office trading up to 2015.

Since then Oliver has been consulting for a large bank in Southeast Asia and has founded two companies; Tronn (cloud based quantitative analytics) and Invariance (systematic trading in FX, commodities and crypto using machine learning techniques).

Oliver has a degree and masters in mathematics from Imperial College London.

Irnanda has considerable commercial and mining sector expertise, with more than 30 years experience in transforming and restructuring state enterprises and private companies to achieve better performance.

He is currently examiner of doctorate degree in Strategic Management and Accounting in the University of Indonesia, and has served as the Indonesian deputy Minister of State Owned Enterprises, and the board of companies such as Jasindo, Pertamina, and Garuda. He was also formerly the Chairman of the National Research Council of Indonesia, Surabaya Institute of Technology, PT MMU, and the NU Economic Development Division.

Irnanda has a MSc.Eng in Production & Manufacturing Management Systems, MBM in Business Management from Birmingham University, and a PhD in Business Management from South Australia University.

Michael is a highly experienced Civil Engineer with over 12 years experience in the Indonesian mining sector, working in Sumatra, Kalimantan and Sulawesi. 

He has worked on significant projects including, building an inland port in Jambi Sumatra with ability to handle 300 foot jumbo barges for movement of commodities and slurry pumping pipeline in Kalimantan. Michael has very strong technical analysis expertise and experience managing a large team in the field.

He is a graduate of Maranatha Christian University Bandung, majoring in Civil Engineering in the structural sub-field, and is ISO Licensed.

Windi has over 4 years of experience in ventures and investor relations. Her greatest strength is building relationships with investors, providing support, and making sure they are satisfied with the service provided.

As operations manager of Blockchain Labs Asia, Windi is involved with all aspects of running the incubator, and is often the first point of contact for investors and the ventures. Previously, Windi provided a freelance translation service for clients from Australia, United States, New Zealand, and Germany, translating content from English into Indonesian across various platforms and helping launch products and services into the Indonesian market. Windi also worked with Bookya in customer engagement for the Southeast Asian region.

Windi has a Bachelor of English Literature, and also has Blockchain certifications.

Advisory Board

Our advisory board gives us the confidence to work in uncharted waters, knowing we have such deep experience to call on.

Alex has over 20 years’ experience working in the Financial Markets as a trader and broker with a specialisation in Options trading. With experience in Foreign Exchange, Fixed-Income and most recently, Commodities, he has a strong sense of Macro Fundamentals and Technical Analysis.

Alex is based in the UK and is delighted to work with Enegra to build out their trading operations globally. Alex has also followed the blockchain and digital securities sectors from inception and has a keen interest in Enegra’s development in this area.

Robin Coombe has over 20 years’ experience working in Oil & Gas, resources and infrastructure sectors in Australia and Japan. He has related expertise in business development, contract negotiations, business analysis and contract management.

Robin is currently based in Australia and is pleased to work with Enegra to find ways to grow the business, implement projects and to grow the investor base of the company.

Robin has an MBA and Engineering degree from the University of Adelaide.

Tim Burnell is a Senior Executive with considerable experience in marketing, communications and branding in the Oil & Gas, Aviation and Banking sectors. He brings to Enegra expertise in business strategy, corporate communications, customer experience, brand, culture and transformation at leadership and advisory levels with a global remit.

Tim has managed large, high performing teams across multi-markets with budget ownership up to USD 400 million annually, with organisations such as Etihad, Emirates, BP, and First Abu Dhabi Bank.

Tim holds an MBA in International Business, from Cranfield University.

Private placement of EGX

Enegra is currently offering a further 2 million EGX via private placement to raise funds for trade finance, mainly for monetisation of the coal Offtake Agreement that Enegra has established with 16 mid-tier mines in Indonesia.

Please contact [email protected] for more information.

Industry News & Views

9 February 2021

Automation & 5G Are Driving The Future Of Mining

Key technologies are shaping the process of commodities mining.

A new vision for the future of mining is coming into focus. To achieve this vision there are several key technologies that need to be implemented. Two of these technologies are automation and high bandwidth communications. Both are being rapidly developed and deployed for the mining industry, yet it remains to be seen if these technologies will have positive or negative impacts on society.

Technological progress has merely provided us with more efficient means for going backwards.” ― Aldous Huxley

The direction the mining industry is taking falls in line with what the World Economic Forum is calling The Fourth Industrial Revolution. As with all new technologies, there are potential opportunities and drawbacks to be managed in this process. A balanced view requires that we address both of these impacts. Although there are a number of other new technologies that are being implemented in mining, such as AI, Big Data and the IoT, two of the most interesting are Automation and High Bandwidth Data.

Automation

According to a new study, the market size for global mining automation is estimated to reach $3,155 million by 2025. In the last ten years, there has been a move to upgrade mining equipment to reduce CO2 emissions and reflect the increasing depth of mines. This trend has been amplified by the impacts of a global lockdown which is driving greater adoption of automated machinery.

All the major mining equipment manufacturers are competing to bring this new generation of products to market. Analysts believe in the future mining operations could use automated machinery from a variety of manufacturers across a standardised platform, in what could be known as “mixed fleet automation”.

There are numerous advantages that miners can leverage from automation. As with the manufacturing and transport industries, automated mining machinery can be continuously operated for greater productivity. To make economic sense the investment costs in automated machinery must extrapolate to less than the cost of paying human operators.

High Bandwidth Communications

The implementation of automated mining machinery is heavily reliant on high bandwidth communication systems. This data stream is being facilitated by the implementation of 5G technologies. A greatly increased bandwidth for data traffic delivers several key benefits:

Processing Power. Until recently, the computing processes for autonomous vehicles needed to take place within the vehicle itself. Due to the high rate of data transmission across 5G networks, processing can now happen on cloud servers. This negates the necessity to instal and maintain industrial computers inside automated vehicles.

Latency. The bandwidth of 5G is reducing transmission latency to under 30 ms. Such low latency allows operators to control vehicles remotely without experiencing lag. This not only improves safety but also triples the speed at which autonomous mining vehicles can operate.

Positioning. Precision positioning of vehicles and mining assets is improved with 5G networks. Proponents of 5G claim it offers greater accuracy over existing GPS systems, allowing asset positioning to within less than 1 meter. The accurate positioning of vehicles reduces risk and enhances productivity across mine sites.

We have identified two of the major technologies that will shape the future of the mining industry. As technology improves, it helps miners to remain competitive in an industry with diminishing supplies. However, there are social impacts that will result from the automation of the mining industry. It is likely that we will see these impacts initially addressed within the transportation industry, as automated vehicles erode workforces.

The World Economic Forum’s Future Of Jobs report estimates that 50% of all employees will require re-skilling by 2025. Much of this will take place in industries that have traditionally required manual labour to operate vehicles. Author and activist Naomi Klein believes that increasing automation is not warranted in a time of growing unemployment. She believes it will deepen the wealth, race and class divides that are already prevalent in many parts of the western world.

At The Enegra Group, we work directly with the mining industry, so analysis of trends is important to us. There are many advantages to be gained from automation but the resulting unemployment will need to be effectively managed. As the cost of employment in developing countries is far less than their western counterparts, the economic incentive for automation is not as strong. We, therefore, expect to see slower adoption of automation in developing countries, but that may change as economies of scale reduce the costs of automated equipment in the future. It will be necessary to ensure that progress is effectively managed to disperse benefits throughout communities.

Mining is at the forefront of some of the most advanced technologies today, what happens in mining will impact many other sectors of the economy. As we move towards the wider adoption of automation and 5G technology the mining industry is well-positioned to identify trends and lead the transformation of the industry.

Enegra Group Ltd (LL15959) is a commodity trading company focused on resources in Southeast Asia. Equity in Enegra has been tokenised via the EGX security token. For enquiries related to the purchase of EGX please contact [email protected]


Automation & 5G Are Driving The Future Of Mining was originally published in Enegra on Medium, where people are continuing the conversation by highlighting and responding to this story.

26 January 2021

Indonesia’s Omnibus Law — A Changing Economic Climate

Indonesia’s Omnibus Law — A Changing Economic Climate

The controversial omnibus law will change how foreign investment is managed within the country.

As Indonesia seeks to solidify its global business position with a new omnibus law, critics are strongly objecting the legal changes. There are valid reasons behind Indonesia’s drive to streamline legislation, but the new law is creating controversy over its impact on workers, the environment and political corruption. To stay competitive, Indonesia needs to update its bureaucracy, but business development must be balanced with the protection of people and the environment. In this article, we delve into the controversy surrounding Indonesia’s new omnibus law.

We may brave human laws, but we cannot resist natural ones.” — Jules Verne

Anybody familiar with Indonesia knows that doing business within the country is fraught with regulatory difficulties. A bloated bureaucracy, corruption and prohibitive regulations present barriers to investment. However, a new business climate is driving Indonesia to make significant changes to its investment legislation. These changes represent challenges for a country with the world’s fourth-largest population.

As we have identified in our previous articles, the growing global demand for electric vehicles promises significant growth opportunities for Indonesia. Investors such as Tesla, Toyota and Hyundai are among the international auto manufacturers making multibillion-dollar investments into the country. Indonesia intends to leverage this growth to develop an internal market which will see the country become a global hub for both electric vehicles and battery technology. Combined with a drive to develop downstream mining processes for commodities, these developments herald a new era of business growth within the country.

These emerging opportunities have contributed to the development of Indonesia’s new omnibus law, which aims to streamline the country’s business regulations. Updated employment laws, new land acquisition rules and improved licensing services will all contribute to greater foreign investment. A further law aims to eliminate Indonesia’s dividend tax and reduce corporate income tax to 20% by 2022. Reducing bureaucracy and improving the financial climate for investors represent some of the more palatable aspects of the new omnibus law.

However controversial elements of the omnibus law have stimulated significant opposition, both internally and internationally. During 2020 there were protests from worker’s unions, student groups and religious conservatives around Indonesia. A letter was also sent to the Indonesian government from 35 large international investors. These investors cited concerns over potential environmental degradation which could be caused by the new law. The 1,187 pages of the omnibus law revise over 70 existing laws and was signed by President Joko “Jokowi” Widodo on November 2nd. However, two of Indonesia’s largest trade unions have now filed for a judicial review at the county’s Constitutional Court.

There are a number of key points of contention for opponents of the omnibus law. In general, they can be grouped into environmental protection, employment rights and the control of corruption. Opponents claim that the new legislation will make it easier for businesses to undertake projects which have a negative impact on the environment. Both deforestation and water resource management have been problematic in the past and it is feared that increased industrial growth will compound these issues. Critics also fear that increasing industrial output will adversely impact Indonesia’s ability to meet the Paris Agreement on climate change.

Labour unions are concerned that the new rules will provide employees with less protection from predatory employers. Unionists contest that the omnibus law erodes worker’s rights by amending the rules concerning contract workers, severance pay and outsourcing. There are also claims that the changes were enacted without sufficient consultation with the trade unions. Although corruption and nepotism are deeply ingrained in Indonesia’s economy, legislation in 2004 divested centralised power from Jakarta to Indonesia’s regional governments. Amendments contained within the omnibus law seek to reverse some of this autonomy, which is creating a power struggle between regional politicians and Jakarta’s political elite.

Indonesia’s previous legislation placed regulatory burdens on foreign investors which were not conducive to economic growth. The country now aims to capitalise on its natural and human resources to significantly increase GDP over the next two decades. Positioning Indonesia as a hub for the emerging electric vehicle market is just one of several strategies that will improve economic output but relies heavily on foreign investment. There can be no doubt that reforming Indonesia’s bureaucracy will help to achieve these goals, but opponents are concerned about the wider environmental and socioeconomic impacts of the new law.

As Indonesia moves forward with the omnibus law it must walk a fine line between the drive for economic growth and the custodianship of its human and natural resources. It remains to be seen how well the country will manage these challenges but these goals may have been better achieved through smaller, tighter legislation.

Enegra Group Ltd (LL15959) is a commodity trading company focused on resources in Southeast Asia. Equity in Enegra has been tokenised via the EGX security token. For enquiries related to the purchase of EGX please contact [email protected]


Indonesia’s Omnibus Law — A Changing Economic Climate was originally published in Enegra on Medium, where people are continuing the conversation by highlighting and responding to this story.

15 December 2020

Indonesia’s Electric Vehicle Commodities

Electric vehicles will drive the growth of Indonesia’s commodity sector.

Indonesia has extensive plans to leverage its commodity deposits to develop a thriving electric vehicle industry within the country. The nation has a basket of valuable minerals which are being viewed with enthusiasm in light of the growing international demand for electric vehicles. Not only will this demand facilitate new industries within Indonesia, but it will also strengthen Indonesia’s existing commodities supply chains. As international markets for electric vehicles expand there are significant new opportunities to capitalise on within Indonesia’s mining sector.

“The lithium is two percent of the cell mass [in our batteries]. So it’s like salt in the salad; it’s a very small amount of the cell mass and a fairly small amount of the cost. But it sounds like it’s big because it’s called ‘lithium ion’, but really, our battery should be called ‘nickel graphite’, because it’s mostly nickel and graphite.” — Elon Musk

Technology mogul Elon Musk makes an important distinction. Electric vehicles rely on batteries which are produced from a number of different mineral components, of which lithium is just one. It is their basket of necessary commodities which gives Indonesia a significant advantage when it comes to the development of electric vehicle batteries. Very shortly this will become a thriving marketplace that will create new business opportunities.

Indonesia’s location along the “Ring of Fire” means it has over 100 volcanos stretching along a crescent encompassing thousands of islands. Ancient geological activity has given the nation an abundance of mineral deposits, along with some of the most productive mines in the world. It is these resources and the existing mining sector which Indonesia intends to leverage for the growth of their electric vehicle industry. Nickel, cobalt, lithium, graphite and copper are all found in Indonesia’s archipelago and represent the vital basket of commodities necessary to produce batteries for electric vehicles. The primary mineral necessary for electric vehicle batteries is nickel and Indonesia has the world’s largest reserves. The country’s Energy and Mineral Resources Ministry estimates that Indonesia currently has more than 50 million tons which could last over 30 years.

Three of Indonesia’s largest state-owned businesses are joining forces in the push towards developing the domestic electric vehicle battery industry. The national oil and gas company Pertamina, recently rebranded state mining holding company Mind Id and electricity giant PLN intend to found a state-owned battery holding company. This new entity will develop an end-to-end domestic supply chain for electric vehicle batteries. It is estimated that global demand for batteries will increase by 400% within the next seven years to 777 gigawatt-hours (GWh). Indonesia intends to produce between 8 and 10 GWh yearly as it ramps up supply over the next four years. Indonesia’s President Joko “Jokowi” Widodo has set a target of having 20% of cars be electric within the next five years.

To encourage foreign direct investment in this industry Indonesia recently passed a new Omnibus Law which intends to improve the investment landscape. The country has often been criticised for high levels of bureaucracy and in 2019 the World Bank ranked Indonesia number 73 out of 190 countries in their Ease of Doing Business Index. The new laws signal Indonesia’s desire to improve this ranking which the government intends to raise to 40 within the next four years.

After talks with Jokowi last week, Elon Musk has agreed to explore opportunities for both Tesla and SpaceX within Indonesia. Leveraging Indonesia’s nickel supplies for electric vehicle batteries holds synergies for both parties. Elon Musk provided insight into his perspective earlier this year when he tweeted:

“Nickel is the biggest challenge for high-volume, long-range batteries! Australia and Canada are doing pretty well. US nickel production is objectively very lame. Indonesia is great!

Other global manufacturers also have ambitions to invest in Indonesia and its nickel reserves. One of the world’s largest car battery manufacturers, Contemporary Amperex Technology from China, has announced plans to construct a $5.1 billion battery plant in the country. Japan’s Toyota recently pledged $2 billion worth of investment towards developing 10 different types of electric vehicles within Indonesia. Toyota intends to transform the country into a global hub for electric vehicle exports within the next five years. Hyundai Motor of Korea has also committed $1.55 billion in investment towards an electric vehicle manufacturing plant in West Java, which will become operational in 2021.

These illustrious names combined with Indonesia’s mineral reserves guarantee the success of this new industry in Southeast Asia’s largest economy. All the necessary components are aligning — the political will, foreign investment and the necessary natural resources. As the industry grows there will be an abundance of new business opportunities to capitalise on within Indonesia’s commodity sector.

Enegra Group Ltd (LL15959) is a commodity trading company focused on resources in Southeast Asia. Equity in Enegra has been tokenised via the EGX security token. For enquiries related to the purchase of EGX please contact [email protected]


Indonesia’s Electric Vehicle Commodities was originally published in Enegra on Medium, where people are continuing the conversation by highlighting and responding to this story.

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