Lead Concentrate Trade

Critical Mineral Resources PLC, the company focused on mine development and trading of critical minerals in Morocco is pleased to announce completion of a maiden purchase and sale of lead concentrate by its commodities trading business. The commodities trading complements CMR's core strategy of acquiring and developing prospective mining projects in Morocco.

Commodities trading

CMR has capitalised on the board's experience and knowledge of the domestic mining industry to source metal and mineral concentrates and raw ores from Morocco's distinct mining regions, for marketing either through the Casablanca commodities market or directly to international customers.

The trading involves buying and selling raw ore and concentrates from small scale miners and aggregators before selling the material at the most favourable payment terms available.

Lead mining in Morocco

Following the recent announcements relating to antimony and copper, the Company has now undertaken its first transaction in high-grade lead concentrate.

This trade is consistent with our strategy of sourcing material from smaller producers and, where appropriate, deploying our joint venture partner's established concentrating facilities. The transaction is one of several being undertaken this year, and it positions CMR as a modest, but expanding and ambitious, trading entity in Morocco.

Charlie Long (CEO) commented: "We are delighted to have undertaken our first lead trade, a product stream that has the potential to grow very significantly given Morocco's lead production levels. I'd like to highlight that the three trades announced over the last few days reflect our team's experience and reach in the Moroccan mining and metals-trading sectors. This expertise will also be the key to CMR's future success in mine development, in terms of securing our preferred project and progressing it quickly and efficiently for the benefit of shareholders".

Lead background

Morocco is a significant producer of lead, exporting approximately 120,000 tonnes of lead concentrate in 2022, mostly from three districts (i) Touissit Bou and Beker in the north east, close to the border with Algeria (ii) the Aouli Mibladen area near Midelt, and (iii) the Aouam area south of Meknes.

Domestic consumption of lead is modest, with the ceramics industry of the Rabat-Salé region the main consumer for the fabrication of pottery glazes. Most crude ore and lead concentrates are exported. In 2022 Morocco was the 13th largest exporter of crude lead ore and concentrates globally, with Germany, South Korea and Italy its major trading partners.

Lead is seen by CMR as one of five priority opportunities for near-term sales growth alongside manganese, zinc, copper, antimony and various industrial minerals.

Fig 1: Morocco mining map

Source: Company