Mining and Investment Division (MID) strives to ensure a stable supply of high-quality mineral resources to global markets through management of mineral resources related assets such as steam coal, anthracite, iron ore, bauxite, nickel and silica sand.
Demand for mineral resources is expected to be solid over the medium to long term on account of global economic growth, particularly in emerging countries.
In preparation for such a future business environment, we will strive to strengthen and evolve the operating base by making use of the collective strengths gained over the years to respond our customer needs.
Trading physical commodities requires extensive product knowledge and involves different business practices that require unique skills and expertise respectively, as the business involves conducting many physical activities such as inspection, transportation and storage. Investment in, and access to, key physical assets is central to our business model.
MID, manages mining operations, develops projects, conducts technical audits of existing and potential projects and provides advisory and support services to the rest of the company. Mining operations and projects includes coal, anthracite, silica sand, nickel, iron ore and bauxite.
Our company is able to enters into short and long-term offtake agreements and supply relationships with several producers, giving them access to our network of clients, logistics, capital and financial relationships. Our company offer a flexible financial assistance through offtake agreements, strategic mine equity investment, structured finance and develop downstream projects that leverage volume growth.
We seek to improve our position by expanding our mining projects, processing assets and logistics infrastructures.
We create a long-term value to our partners at every stage of our vertically integrated value chain — from mining, processing, transportation and shipment through loading facilities, to power generation, sales and distribution.
With most of production and logistics assets located in Indonesia (Kalimantan and Sumatra) and Malaysia (Peninsula and North Borneo), we enjoy a competitive advantage with regards to ease and cost of supply to the strategic Asia-Pacific market.
TRIPARTITE AGREEMENTS
MID, works with several industry-leading Commodity Trade Financing Banks (‘CTF Banks’), Venture Capital Companies and Family Offices around the world to provide tripartite financing arrangements to our partners. MID offers to its associates a well-established cohesion of its mining and trading industry expertise together with the financing facilitation of CTF Banks, working together to create a win-win-win solution.
With a strong panel of Financial Partners working with MID, we can offer our partners tailored solutions for their financial needs.
We offer a variety of solutions that are tailored to our customers’ requirement, with capabilities of trading, brokering, hedging, logistics, quality and credit risk management and mine financing.
Magallanes is currently developing its Mining Royalty Division in Indonesia, to put it in simple terms Magallanes will provide funding to miners in exchange for a share of production revenues.
