Active Minerals International of Sparks, Maryland, provides innovative industrial mineral solutions for today’s technologically advanced world. It operates mines, processing plants and storage facilities across the world, and is an award winning, environmentally responsible company dedicated to conserving resources, reclaiming mined land and leaving the Earth a better place. The company was founded by Peter F. Osterchrist and his wife over 50 years ago as a one room operation in their home, the traditional American entrepreneurial fashion of many immigrant families. Today, Active Minerals is the world’s largest producer of raw materials used in the production of fiberglass, refractories, cement and catalysts.
The company has been exporting since it was founded. Initially, the company was exporting to one market in Asia. As the company grew, it entered new markets and now sell its products to customers all over the globe.
The challenge the company faced was twofold: how to ensure payment on shipments going overseas, and how to raise the working capital needed to fill orders from international buyers.
EXIM’s Export Credit Insurance helped Active Minerals meet both of these challenges. Export credit insurance protects the company from nonpayment by foreign buyers. With export credit insurance, the company’s assets are not only protected, but the company is empowered to offer “open account” credit terms, while mitigating their risk.
Another advantage for Active Minerals was the ability to widen their borrowing base. Most banks will not include foreign receivables in a company’s borrowing base if those receivables are not insured. With an export credit insurance policy, Active Mineral’s commercial lender added the foreign receivables to their borrowing base, enabling them to raise working capital and produce the products needed to fill orders from foreign buyers.
Today, exporting supports Active Minerals operations on five continents, making it a world leader in both mineral solutions and environmental stewardship. EXIM supported $98.7 million of the company’s exports from 2016 to 2018.