Strategic Minerals' shares experienced a surge on Wednesday, driven by a five-year memorandum of understanding (MOU) with Oxford Sigma. The agreement is aimed at establishing supply pathways for the critical mineral, tungsten, to cater to the burgeoning fusion industry's requirements.
The company's subsidiary, Cornwall Resources, is at the forefront of this commitment. Its role will be pivotal in ensuring a steady supply of tungsten to meet the anticipated future demand, which is expected to be substantial. Each reactor in the fusion industry could potentially require between 100 and 5,000 metric tons of tungsten. Moreover, the regular renewal of components amplifies this demand further.
The driving force behind this agreement is the anticipation of a significant increase in tungsten demand. This is due to its extensive use in fusion reactors, where it plays a crucial role in maintaining the efficiency and longevity of components. The five-year MOU between Strategic Minerals and Oxford Sigma serves as an effective strategy to secure a reliable source of tungsten and meet this impending demand.
This development underscores the strategic importance of securing critical minerals like tungsten in the face of growing industrial needs. The proactive steps taken by Strategic Minerals through its subsidiary Cornwall Resources illustrate the company's foresight in addressing these market dynamics.
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