https://www.benzinga.com/news/24/09/40704091/trafigura-signs-400m...

https://www.benzinga.com/news/24/09...s-400m-prepayment-deal-with-mineral-resources


Trafigura Signs $400M Prepayment Deal With Mineral Resources
by Stjepan Kalinic, Benzinga Staff Writer
September 4, 2024 7:22 AM | 2 min read | 1 Comment

• Trafigura secured a $400 million prepayment deal with Mineral Resources, ensuring iron ore deliveries from 2026-2028.
• Rising debt and production costs challenge Mineral Resources as iron ore prices drop below $100 per ton
• Commodity trading powerhouse Trafigura has been identified as the client behind Mineral Resources' MALRF $400 million prepayment deal for iron ore. The Australian miner has previously reported the deal in July without disclosing the client's identity.
  
  "Due to confidentiality restrictions, we cannot disclose the terms or the customer that the transaction was undertaken with," a spokesperson for Mineral Resources said, perBloomberg's report.
  
  Yet, according to people familiar with the matter, that client is Trafigura- one of the world's largest commodity traders, which has been aggressively expanding its activities.
  
  
  Over the past decade, Trafigura's iron ore volumes have surged more than fivefold, reaching 31 million tons by 2022, boosted by higher volumes at its Brazilian port and trade flows from Australia and India, per the half-year report.
  
  Now read: Teck Resources Unveils Post-Coal Business Structure, Promotes New Executives
  
  Prepayments are a standard financing tool in the commodity sector, allowing traders to secure resources by providing upfront payments to producers. These payments are typically structured as loans with interest but are repaid through future commodity deliveries