The Enegra Group

A corporate profile.

Matthew Averay
Oct 21 · 3 min read

The Enegra Group was founded in 2011 to deliver operational expertise to Southeast Asia’s commodity trading sector. The company’s operations have focused on trade financing assistance, commodities trading, coal sourcing and the management of coal off-take agreements.

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Enegra has negotiated long-term coal supply agreements within Indonesia for up to 60 million tonnes per year. Many of these agreements have terms of 20 years or until the end of the mine’s lifespan. Coal is the largest contributor to Indonesia’s energy grid and delivers around 60% of the nation’s power production. The previous decade has seen Enegra focus on delivering coal resources to meet Indonesia’s growing internal energy requirements.

Global fluctuations in the price of commodities create uncertainty within supply chains. Enegra is able to offset these fluctuations through the intelligent hedging of prices, reducing risks for both the company and miners. By leveraging financial instruments Enegra is able to guarantee commodity price floors for up to 7 years.

Indonesia contains the world’s sixth-largest coal reserves, which are estimated to be around 37,000,000,000 tonnes or 4% of global reserves. The country’s Energy & Mineral Resources Ministry believes coal production will rise by 11% in 2020 to 609,000,000 tonnes. In the future, Enegra plans to leverage its competencies in the coal industry to enter other emerging markets within the Southeast Asian region.

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Electric Vehicles are set to catalyse new industrial growth within Indonesia. The country recently enacted a ban on nickel ore exports and it is estimated that nickel production within Indonesia will jump 46% this year to 550,000 tonnes. Nickel is a key component in the production of high-capacity batteries needed for Electric Vehicles. Indonesia is set to capitalize on its nickel reserves by leveraging them to develop the growth of new downstream industries. Enegra plans to grow alongside Indonesia and expand into this exciting new sector.

Enegra is able to supply nickel trade financing from mine-to-smelter and has identified the island of Sulawesi as one of Indonesia’s primary opportunities. As the sector develops the company intends to integrate vertically and provide value-added services along the supply chain. Engagement with Indonesia’s second-tier miners provides Enegra with the opportunity to support the industry from the ground up. Being able to supply trade finance and purchase 100% of a mine’s product delivers the financial stability needed in small to medium mining operations. Enegra is then able to oversee supply chain logistics from mine-to-client.

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Enegra’s management is committed to the benefits of blockchain technology and has tokenised the company’s shareholding using ERC-20 security tokens. Future implementations of blockchain within the mining industry are set to bring significant changes that Enegra will support. Blockchain technology will reduce documentation and delivery risks as the mining moves from paper-based contracts to tokenised, trackable systems. Tokenised commodities will also reduce fraud and illegal mining by immutably registering the movement of commodities along the supply chain.

Leveraging its skills and connections within the mining industry, Enegra operates in a mix of traditional and emerging sectors. The broader growth of commodities within Southeast Asia will bring opportunities for Enegra to participate in developing markets. As an early adopter of blockchain technology, Enegra is ideally situated to capitalise on the benefits the technology offers and contribute towards its implementation within the mining 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 enquires related to the purchase of EGX please contact support@enegragroup.com.

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