(Sharecast News) - Strategic Minerals announced a significant partnership through its wholly-owned subsidiary Cornwall Resources (CRL) on Wednesday, aimed at exploring and developing critical mineral supply chains, mainly focusing on tungsten for the burgeoning fusion industry.
The AIM-traded firm said it had executed a memorandum of understanding (MoU) with Oxford Sigma - a pioneering nuclear fusion technology company headquartered in Oxfordshire - to establish the framework for the collaboration.
It said the alliance resulted from a meeting between Dennis Rowland, project manager of CRL, and Dr Thomas Davis of Oxford Sigma at CRL's Redmoor offices in Cornwall.
The discussions underscored the potential of the Redmoor Project, known for its high-grade tungsten resource, to complement the UK government's critical minerals strategy.
Strategic Minerals said the MoU aligned the expertise of both parties to explore, promote, and solidify the mineral supply pathways with a keen eye on fulfilling the anticipated tungsten needs of the fusion industry.
The board said the fusion industry was projected to exhibit substantial demand for tungsten, given its integral role in fusion reactor construction and maintenance.
Depending on its design, each potential reactor could require between 100 and 5,000 tonnes of tungsten, coupled with a recurrent need to renew tungsten components.
"We are pleased to be working with the Oxford Sigma team who have a deep understanding of the fusion energy industry within the United Kingdom and abroad," said executive director Peter Wale.
"Oxford Sigma is working to develop a long-term supply chain approach to sourcing tungsten for this key developing future technology.
"This agreement highlights the high grade, JORC 2012 compliant, tungsten resource at Redmoor."
Wale said the company believed Redmoor to be a world-class deposit with the potential to contribute towards the large quantities of tungsten needed to advance the UK's ambition to move nuclear fusion technology into commercial production in the coming decades.
"By working with Oxford Sigma, we intend to further highlight to the national government the importance of establishing domestic tungsten mining to provide long-term security of supply for the fusion community, and Redmoor's ability to help meet these needs."
At 1400 BST, shares in Strategic Minerals were up 9.83% at 0.13p.
Reporting by Josh White for Sharecast.com.
Strategic Minerals (SML)