Trafigura has signed an US$800mn critical metals insurance policy with the Saudi Export-Import Bank (Saudi Exim) to support prepayment financing provided to mining projects worldwide.
The commodity trading giant said the “first-of-its-kind” agreement will see Saudi Exim provide credit insurance for prepayment transactions, which typically involve providing upfront funds in exchange for offtake at a later date.
The first transaction to be covered under the policy is in the copper mining sector, with financing provided to a global metals producer not named by Trafigura. The commodity trader said this is the first financing of its type to be backed by an export credit agency.
“We are pleased to have signed this landmark agreement with Saudi Exim,” said the trader’s global head of metals and minerals, Gonzalo De Olazaval.
“Its innovative financing structure – with our first deal already completed – demonstrates how export credit agencies and commodity trading companies can work together to support the development of critical metals and minerals supply chains.”
Saudi Exim chief executive Saad AlKhalb added that the agreement strengthens the country’s presence in the critical minerals market in line with its Vision 2030 strategy.
“Today, minerals are not merely industrial inputs; they are strategic components of energy security and industrial and technological transformation across the globe,” he said.
“This reality demands more flexible financing instruments and sounder capabilities to manage cross-border risks – a role fulfilled by Saudi Exim through its financing, insurance, and supply chain financing solutions.”
The policy is the latest in a string of agreements between Trafigura and Saudi Exim, including a US$500mn credit facility signed in 2023 that was upsized to US$700mn last year.
