Aim-listed Critical Mineral Resources’ (CMR’s) commodities trading business has entered into an agreement for the buying and selling of high-grade copper ore, grading between 5% and 10% copper, sourced from a small-scale mine in the Anti-Atlas, in Morocco.

This transaction is consistent with CMR’s strategy of sourcing raw material from smaller producers and, where necessary, upgrading lower-grade products using the company’s operational concentrating facility.

This current trade, one of several to be completed in the coming weeks, was undertaken through the company’s partnership that is now beginning to scale its activities and the scope of materials sourced and supplied to overseas markets.

The commodities trading complements the company’s core strategy of acquiring and developing prospective mining projects in Morocco.

The commodities trading strategy is based on CMR’s joint venture (JV) partnership with an established Moroccan trading company which sources commodities.

CMR and its JV partner collaborate on negotiations, quality control, upgrading, storage, transport and shipping logistics.

The company points out that copper is essential in renewable energy, electric vehicles and general increased electrification.

Copper demand from cleantech is projected to increase from 6.3-million tonnes in 2023 to 16.3-million tonnes by 2040, according to the International Energy Agency, in line with the global energy transition.

This is expected to drive total copper demand from about 26-million tonnes presently to 36-million tonnes in 15 years, while maturing mines, declining ore quality and a lack of new discoveries impact supply, the company points out.

“We are pleased to report a further transaction by our commodities group. Moving into copper illustrates how nimble and well connected our Moroccan partnership is, and the potential for the business to grow into something important.

“CMR intends to fully exploit our early-mover position as an integrated mine developer and commodities trader with a unique business-focused approach to deliver value for our shareholders,” says CEO Charlie Long.