TradeFlow Capital Management collaborates with Abu Dhabi-based metals digital trader Open Mineral to launch 'Critical Minerals Trade Finance Fund' and Trading Platform

Mon, 04 Dec 2023 08:00:00 +0800

New Fund and Trading Platform will help address the global energy transition urgency. Critical minerals are vital for the energy transition and the UAE stands to be a market leader in the emerging new energy economy.

SINGAPORE, Dec. 4, 2023 /PRNewswire/ -- Singapore-based Fintech-powered Fund management firm TradeFlow Capital Management (TradeFlow) and Abu Dhabi based digital trader Open Mineral have joined forces, launching the 'Critical Minerals Trade Finance Fund' and a new TradeFlow Metals platform to help address urgent global energy transition needs. Open Mineral will be a Founding Client, providing a multi-year commitment to this collaboration that will connect new and existing trade finance investors and banks with digitally de-risked transactions of global critical minerals flows including copper, lithium and zinc.

The "Critical Minerals Trade Flow Fund" and TradeFlow Metals digital platform were launched at the recent Abu Dhabi Finance Week 2023.

Dr. Tom James, CEO and co-founder of TradeFlow, highlights: "Open Mineral brings a remarkable team of metals trading experts who possess a strong digital DNA aligned with ours. We are excited to see the establishment of two new entities today, aimed at fostering the growth of the commodities trading industry in the UAE. The first entity is the 'Critical Minerals Trade Flow Fund', managed by TradeFlow.

The second entity is the 'TradeFlow Metals platform', which will operate as an independent and fully separated entity. This platform will leverage the skills and expertise of TradeFlow's technology provider and long-term partner, Liberatech Plus, which has already assisted in the processing of over 3,000 trades and USD3 billion in cross-commodity cargoes since 2018.

This is a great opportunity to participate with our partners to bring the advantages of FinTech and liquidity to the transition metals market with our digitalised solutions. This is a great success for all involved and the transition metals and energy markets as a whole."

James Rilett, Chief Product Officer of Open Mineral affirms: "We are honoured and proud to be the Founding Client of  the Critical Minerals Trade Flow Fund. In partnership with TradeFlow, we are committed to bringing proven Risk Transformation methodology and technology to the critical minerals sector. Open Mineral has one of the fastest growing critical minerals books in the world and we see no shortage of opportunity to trade more of these flows, but our industry needs capital. Since incorporating in Abu Dhabi Global Market in 2022, we have profitably traded over $500mn of metals."

Mr. Rilett further explains: "This is a crucial phase in the transition of the regional economies, and we want to de-risk and capture opportunities at scale. Commodities as an asset class has a high risk, high complexity reputation, with tech and data changing this risk profile. Our strategic role in enabling global trade finance to meet these new opportunities serves to enhance and catalyse the regional economies. To be combining this game-changing trade finance platform with Open Mineral's trade book and metals know-how was an unmissable opportunity."

According to the International Energy Agency (IEA), the market for energy transition metals was USD320bn in 2022, which based on Open Mineral assessment will treble in the next 10 years. This  collaboration with TradeFlow shall be an effective means of addressing critical metals demand.

About TradeFlow Capital Management (Tradeflow)

TradeFlow is the world's first Fintech-powered commodity trade enabler focused on SMEs. TradeFlow consists of a diverse team of experts with the focused mission of addressing the increasing trade finance gap faced by global SMEs operating as producers/traders/end-users in the bulk commodity trading space. By performing an enabling role in international trade and globalization, TradeFlow creates growth opportunities for businesses and economies.

To date, TradeFlow has successfully invested in more than US$3 Bn of physical commodity trade through 3000+ transactions across 18+ countries and 30+ commodity types, with more than 1800 SME counterpart entities KYC reviewed. As part of its unique business model, The TradeFlow Funds*, advised by TradeFlow, were conceived in 2016 and launched in 2018.

TradeFlow is a Partner of the International Chamber of Commerce (ICC) to mobilise capital and improve trade finance access for SMEs worldwide through the "'ICC Trade Now" and "ICC Digital Trade Standards Initiative" platforms.

For more information, please visit: www.tradeflow.capital   

About Liberatech Plus

Liberatech Plus is a leading provider of cutting-edge and scalable solutions that empower businesses in the commodities supply and trading industries. Our innovative technologies are designed to remove barriers, enhance transparency, and drive innovation in global trade. From small and medium enterprises (SMEs) to multinational corporations (MNCs), our solutions enable clients to thrive in the dynamic commodities markets and benefit from the digitalisation of global supply chains. We offer a comprehensive range of advanced solutions, including state-of-the-art Commodity Trading and Risk Management (CTRM) systems, and all-encompassing Digital Trade Services (DTS).

With our expertise and forward-thinking solutions, we actively contribute to economic growth and foster a world where geographical borders, financial constraints, and technological barriers no longer hinder global trade.

About Open Mineral

After securing funding from Mubadala Investment Co, amongst others, Open Mineral accelerated its growth plan last year by opening offices in Abu Dhabi and Shanghai, where the company expects to double its headcount over the coming year. Currently headquartered in Zug, Switzerland, Open Mineral has a global presence with offices in Latin America, UAE, China, the Americas, Asia, and Europe. Open Mineral is a physical commodity trader powered by technology and market intelligence, enabling profitable and efficient trading of raw material commodities. Founded in 2016 by a team of ex-Glencore traders based in Baar, Switzerland – The Open Mineral platform has onboarded over 900 metals and mining companies from 40 countries.

For more information, please visit: www.openmineral.com