Strategic Minerals (SML) , an exploration and mining company focused on critical minerals, announced that its wholly-owned subsidary Cornwall Resources (CRL) has signed a Memorandum of Understanding (MoU) with nuclear fusion company Oxford Sigma.
The MoU outlines how the two companies will collaborate on developing supply pathways for tungsten for the nuclear fusion industry. Strategic Minerals' Redmoor project in Cornwall is one of the few high-grade tungsten resources in the UK and is expected to be the main focus of the partnership. The MoU was signed for an initial 5-year period.
Strategic said representatives of the two companies had recently held discussions at CRL's Redmoor offices in Cornwall on the potential of the Redmoor project to help meet the nuclear fusion industry's significant demand for tungsten - estimated at 100-5,000 tonnes (design dependent) per reactor not including tungsten needed for regular maintenance.
"Following on from other recent MOUs in tungsten supply, Oxford Sigma has entered into a key collaboration agreement with Cornwall Resources Limited. This is a natural fit to further strengthen our approach to securing long-term tungsten supply for the fusion power industry. Commercial fusion power stations are expected to become the ultimate domestic energy source, providing our clean power needs for generations." said Thomas Davis, CTO of Oxford Sigma.
"This agreement highlights the high grade, JORC (2012) compliant, tungsten resource at Redmoor. We believe Redmoor to be a world class deposit that has the potential to contribute towards the large quantities of tungsten necessary to advance the UK's ambition to advance nuclear fusion technology into commercial production in the coming decades." added Peter Wale, Executive Director of Strategic Minerals and Director of CRL.
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This is a major development from Strategic as the company's high-grade tungsten asset garners increasing demand amid a broader global focus on critical minerals and related resource nationalism.
Nuclear fusion (not to be confused with widely adopted nuclear fission-based technology) is a potentially near-limitless supply of carbon-free energy that has been in development for decades, but has recently seen a number of significant breakthroughs. Most notably, nuclear fusion made headlines earlier this year as scientists were able to extract more energy from a fusion reactor than they had put in to initiate the reaction, bringing the technology one step closer to a commercial reality.
As Strategic explained in its statement, tungsten is one of the main critical metals needed for fusion reactors. In addition to the initial construction requirement, there is also a significant maintenance requirement to renew tungsten components on a regular basis.
With fusion garnering US$6.2 billion of mainly private investment worldwide as of August 2023, Strategic's Redmoor tungsten and tin project should play a significant role in supplying the UK and region with the critical metal, with today's MoU further underscoring Redmoor's value. Investors agreed, driving SML shares 22% higher on Wednesday.
Currently, over 90% of global tungsten supply is controlled by China (84%), Vietnam (5.7%) and Russia (2.7%). The UK's recently established Critical Minerals Strategy aims to reduce dependence on imports for critical metals, including tungsten. Thus, the Redmoor project is likely to benefit from future Government funding as it falls within the Critical Minerals Strategy. Additionally, as Redmoor is expected to result in many well-paid jobs in East Cornwall, it is likely to benefit from the Government's Levelling Up policy.
Redmoor may also benefit from the US' expected classification of the UK as a "domestic" source of some critical minerals, including tungsten and tin. This may provide an opportunity for project funding from US budgets allocated to these arrangements. A further good sign is the US Department of Defense's recent direction to suppliers to source only non-Chinese/Russian tungsten in their products by 2027. With China supplying 84% of world tungsten and the US consuming 45%, there is a positive outlook for the Redmoor project as a potential "domestic" source of tungsten.
Last autumn, Strategic's exploration license at Redmoor was extended by 25 years until 2037. Currently on the agenda for Redmoor is the preparation of a pre-feasibility study, to be followed by a bankable feasibility study.
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