Natural Resources Overview
The Natural Resources division and portfolio is the latest division to the MBU Group. Our investments exist primarily in developed capital markets (mostly North America) where an established rule of law and legal framework exists that ensures that MBU Capital and its investors are safeguarded.
Investments will be both asset-backed and either cash flow producing or in high value resources that can show development potential from exploration into production.
The portfolio to be split evenly between Precious Metals and Compound Materials used in the Industrial applications such as the steel making process such as Anthracite, Met. Coal, Ferro-Alloys and Graphite.
Compound Materials and Rare Earths
The future of MBU Natural Resources will be in US Steel, and expects the US to move toward both large infrastructure projects (roads, hospital, bridges, airports etc.) combined with increasing domestic self-sufficiency, especially away from China as its key import partner.
The manufacturing of steel delivers the goods and services that society needs – healthcare, telecommunications, improved agricultural practices, better transport networks, clean water andaccess to reliable and affordable energy.
Global steel production is dependent on High Vol. Metallurgical Coal, Anthracite and Flake Graphite as it is a vital ingredient in the steel-making process. With a world crude steel production of approximately 1.7 billion tonnes, around 876 million tonnes of metallurgicalcoal was used in the production of steel in 2019.
The development of carbon sources for the next generation of product is something that MBU Natural Resources is at the forefront of and has the ability to commercialise carbon enhanced products in a range of market sectors.
The Natural Resources division will be looking to form a trading vehicle in the US that concentrates on minerals that are key ingredients in making various forms of steel, in particular the niche commodities mentioned above that are combined with bulk materials (such as iron ore and scrap steel) in the process.
We will also be looking at Rare Earth minerals that have commercial applications, as well as a store of value.
- MBU will focus on delivering a consistent blend of low-cost high carbon solutions to steel makers in the US and abroad.
- A replacement wherever possible to Pet Coke due to higher Sulphur contents.
- Looking to partner with local partners in the US who share the same vision.
“Without coal, there is no steel”
Steel development is a measurement of development and economic growth. Long term steel demand fundamentals remain robust based on urbanisation across the globe.
Gold has always been a store of value, and MBU Capital will be looking to invest in any poly metal that often are found with Gold as an asset such as Copper / Nickel or Palladium.
Ideally these will be proven and probably resources that have scale and require development financing as opposed to exploration.
Where a mineral has both a precious value as well as an industrial application, such as palladium it is also ofinterest to MBU Natural resources division.