Critical Mineral Resources PLC (CMR), a UK-based company, has launched metals and industrial minerals trading operations in Morocco, according to a statement on Wednesday.
The move looks to generate short-term cash flow and profits while advancing the company’s core mission of acquiring and developing advanced mining projects in the region.
Since announcing in March its intent to enter metals trading, CMR has worked to establish a foothold in Morocco’s mining market. The company has now partnered with a Moroccan trading firm, which remains anonymous, that specializes in sourcing metal concentrates and raw ores.
Together, the partners will procure materials from Morocco’s mining regions and arrange sales to local and international buyers.
The trading venture looks to leverage CMR’s extensive industry expertise and its partner’s operational capabilities, including access to a concentrating facility.
The partnership allows the company to aggregate products from smaller producers and enhance the value of lower-grade materials, creating opportunities for profit margins ranging from 3% to 20%, depending on the trade.
Under the joint venture agreement, CMR will control 70% of the profits while its Moroccan partner will retain a 30% share.
The trading operations will initially prioritize low-risk and short-term opportunities, focusing on specialty metals, zinc, and lead. The company expects to finalize its first trades in the coming weeks, with updates to follow in 2024.
CMR CEO Charlie Long noted the significance of this new revenue stream. “Although reaching this milestone has taken longer than expected, we are thrilled to establish a cash-generating business. This venture could grow into a substantial operation, providing a stable financial foundation for our broader goals.”
In addition to trading, CMR is making strides in identifying high-quality mine development opportunities.
While specific details remain under wraps, the company anticipates significant announcements by the first quarter of 2025. The CEO highlighted the board’s optimism, pointing to Morocco’s rich mining sector as a key driver of the company’s long-term vision.
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