Source the commodity
MMT sources run-of-mine thermal coal from junior producers across the Witbank and Highveld coalfields, Mpumalanga, South Africa, through established mine, wash-plant, and logistics relationships.
Coal AMC
Strategy Overview
AIP Capital offers institutional co-investment in a controlled RB2, RB3 and RB4 coal strategy, supported by established offtake and long-term utility demand. The $10 million AMC is issued through Dune Capital PCC, secured against physical commodity receivables and warehoused stock.
MMT sells coal through proven channels: Glencore has received DAP deliveries, and Levmet has signed an 8,500t RB2 contract at R850/t FOT. A separate five-year Eskom RB4 contract, 50,000 tonnes per month, 3.0 million tonnes nominal volume, has been novated to a joint venture between MMT and Lithos Coal, a Level 1 B-BBEE partner.
RB2 and RB3 yields are underwritten at 72.7%–78%, with every parcel purchased against washability testing; RB4 supply is subject to sampling, sizing and quality acceptance before dispatch.
The opportunity
tpm
Eskom Call-Off: RB4 direct supply
years
Contract terms
Mt
RB4 contracted
Selected approved commodities
Subject to transaction-level eligibility
Coal
Investment process
Transaction Controls: Each deployment is expected to be linked to an approved trade cycle, with controls covering supplier diligence, KYC / KYB, title documentation, assay or quality verification, logistics documentation, contracted processing, offtaker approval, payment routing, and cycle-level reconciliation.
Selected Risk Considerations: The mandate is exposed to commodity price risk, sourcing risk, assay and quality risk, counterparty risk, toll-treatment risk, logistics risk, country risk, FX risk, sanctions / AML risk, title documentation risk, liquidity risk, and potential loss of capital. Revenue sharing is subject to completed trade cycles and final transaction documentation.
This material is intended solely for sophisticated investors and does not constitute an offer or solicitation in any jurisdiction where such offer is unlawful. AIP Capital Management is registered with the Cayman Islands Monetary Authority (CIMA); however, CIMA does not guarantee the performance of the fund or the accuracy of this material. Past performance is not a guarantee of future returns; the value of investments may fall as well as rise. Before investing, please read all offering documents carefully.