The recently published book, Coal, Courage, and Change: The Rise of Exxaro, written by Nokuthula Mazibuko and Ntsika Msimang, chronicles the South African mining company’s journey from formation to global leadership, highlighting transformation, innovation, and empowerment.
Chapter nine of the book is dedicated to Tamela, “The value of good advice’’. The story of Tamela Holdings and Exxaro illustrates the often unseen but critical role that trusted advisory partners play in building sustainable companies. Over more than two decades, Tamela acted as a financial architect, broker, and steady guide through some of the most complex phases of Exxaro’s evolution, demonstrating that good advice is not transactional, but deeply relational and long-term.
Tamela Holdings was founded in 2008 by Vusi Mahlangu and Sydney Mhlarhi, both of whom had previously worked as executives at Makalani, a JSE-listed firm focused on funding B-BBEE-compliant companies. Their relationship with the founders of Exxaro predates Tamela itself, going back to 2006 when Makalani assisted Eyesizwe in structuring a mezzanine finance arrangement that enabled the buyout of a minority shareholder.
From 2007 onwards, Tamela played a central advisory role in Exxaro-related funding and empowerment structures. This began with funding provided to Eyesizwe Mining to increase its exposure to Main Street 333 and continued in 2013 with joint advisory support to Main Street 333 on the refinancing of its debt facilities, raising R3.8 billion in preference share funding from banks and institutional investors. In 2015, Tamela advised on curing covenant breaches through funding from Exxaro and banks supported by an IDC guarantee, while also assisting Eyesizwe Mining with the refinancing of earlier facilities. Liquidity initiatives followed in 2016, including a share dribble and an accelerated book build.
In 2017, Tamela advised on the unwind of the previous BEE transaction and the structuring of a new Exxaro BEE transaction, including the raising of R2.5 billion in preference share funding. More recently, the firm jointly advised Exxaro on the implementation of new ESOP and community schemes in 2020 and, in 2024, on extending the maturity of Exxaro’s BEE transaction from 2024 to 2027, demonstrating sustained involvement across the evolution of Exxaro’s empowerment structures, while continuing to serve as Exxaro’s JSE sponsor.
Tamela is a corporate finance advisory firm specialising in the raising of debt and equity capital, mergers and acquisitions, and the navigation of complex regulatory and compliance frameworks, including B-BBEE and JSE requirements. From its inception, the firm positioned itself not merely as a technical execution partner but as a long-term strategic advisor, focused on enabling informed decision-making and supporting sustainable outcomes. This partnership-driven approach underpinned the growth of a strong client base – including Old Mutual, Barloworld, and MTN – and established itself as a respected player in corporate finance and transaction structuring.
For Exxaro, Tamela’s role spanned the entire corporate lifecycle: founding, integration, consolidation, and growth. The advisory firm was appointed as Exxaro’s primary deal broker at a time when its credibility as a standalone company was still untested. This appointment reflected Exxaro’s belief in the individuals behind Tamela and an understanding that transformation, particularly through broad-based ownership structures, required continuity and long-term stewardship rather than short-term financial engineering.
One of the most significant undertakings in this partnership was the creation and management of Mainstreet 333, the special purpose vehicle that housed Exxaro’s broad-based B-BBEE structure. The arrangement involved 146 contracts and a wide array of stakeholders, including youth and women’s groups, NGOs, and community-based entities. Managing this complexity required not only financial expertise but also deep empathy, patience, and communication skills. Tamela played a vital role in ensuring alignment, compliance, and trust among all parties.
As the initial ten-year lock-in period, known as Project Pangolin, ended in 2016, Exxaro faced a pivotal moment. Shareholders had the option to exit, partially unwind, or remain invested for the long term. Tamela helped guide stakeholders through these choices by clearly explaining the financial, tax, and strategic implications of each scenario. Through town halls and individual engagements, the firm ensured that all shareholders had access to the same information, reinforcing fairness and transparency.
This period coincided with broader leadership and ownership transitions, including Anglo American’s exit and a change in Exxaro’s executive leadership. Market uncertainty followed, with share prices falling sharply before recovering. Tamela’s role during this time extended beyond numbers; it involved stabilising sentiment, supporting leadership, and helping stakeholders remain focused on long-term sustainability. By April 2016, Exxaro successfully refinanced its structure, raised significant funding (R3.8 billion), and restored market confidence with assistance from the Tamela team.
Tamela’s contribution is framed through the lens of “dynamic brokerage” – a model in which advisors continually adapt their role as organisations evolve. Rather than remaining static dealmakers, Tamela functioned at different times as intermediary, coordinator, gatekeeper, and trusted confidant. This adaptability, underpinned by trust and willingness to engage, allowed the firm to remain relevant across changing economic, regulatory, and organisational contexts.
The Tamela–Exxaro story underscores that success in complex transformation deals cannot be measured solely in financial returns. It is reflected in institutional resilience, sustained partnerships, and the long-term empowerment of individuals and communities.
The value of good advice, as this case demonstrates, lies not only in structuring deals but in guiding people through uncertainty with integrity, clarity, and purpose.
For more information, contact Nkululeko Mnganga on +27 11 783 4907 or Nkululeko@tamela.co.za.
