Breakwall, Vitol Close Second Mining Credit Fund with $520M Anchor Deal

Breakwall Capital LP and Vitol have closed Valor Mining Credit Partners II, L.P., advancing their push into structured credit opportunities tied to mining and critical minerals. 

The fund follows the rapid deployment of the firms’ inaugural vehicle, which invested approximately $470 million in under six months. VMP II will focus on event-driven financing opportunities, including debt refinancing, acquisition financing and development capital. 

The fund has already completed its first investment, a $520 million term loan to Mesabi Metallics Company LLC, backed by the Essar Group. The financing will support the development of an iron ore mine and pellet plant in the U.S., aimed at strengthening domestic critical mineral supply chains and supporting steel production. The project represents one of the largest private sector investments in Minnesota, with more than $2.2 billion already committed. 

VMP II marks the fourth energy-focused credit partnership between Breakwall and Vitol. In less than three years, the Valor platform has deployed more than $2.1 billion across upstream oil and gas, mining and critical minerals investments. 

“In mining and critical minerals, we see a significant opportunity to partner with growing companies by delivering innovative, tailored capital solutions to support the next generation of growth,” said Breakwall Managing Partners Christopher Abbate, Jamie Brodsky and Daniel Flannery. 

Vinson & Elkins LLP served as legal counsel to Vitol, while Latham & Watkins LLP advised Breakwall.