Critical Metals, a copper project developer, has transitioned from an explorer to a producer in the Democratic Republic of Congo (DRC). The company has started mining and processing operations at the Molulu project, which is expected to generate positive cash flow in the fourth quarter of 2023.
The Molulu project is located in the Katanga Copper Belt, which hosts some of the world’s largest copper deposits. Critical Metals has increased its stake in the project from 40% to 70%, giving shareholders a greater share of the future profits.
The company has focused on the high-grade sulfide copper ore, which has the potential to increase profitability significantly. The company has also rehabilitated the road and built a bridge to connect the project to several ore buyers’ processing plants. The company has signed an offtake agreement with one of the buyers and has delivered the first ore to the plant.
Critical Metals has also announced its intention to add a copper/cobalt processing facility to the project, allowing the company to capture greater margins from the Molulu ore. The company has entered into a transaction to rent with the option to buy a previously operating processing plant on care and maintenance.
The company has raised funds from various sources, including a £600 000 placement, a £1.3-million rights issue, and a $3-million debt facility. The funds will be used to increase production at the Molulu project, as well as to conduct due diligence on possible acquisitions in the future.
Critical Metals’ executive chairperson and CEO Russell Fryer said that the company was greatly encouraged by the progress made at the Molulu project and the growth prospects of the group. He said the company would continue to optimize operations, increase production, and work with geologists to produce a mineral assessment of the project. He also said that the company would continue to assess further acquisition opportunities in line with its strategy.
Fryer said that he was confident in the economic viability of the Molulu project, driven by strong fundamentals and increased demand for copper. Copper is a key metal for the green energy transition, as it is used in electric vehicles, renewable energy, and energy storage. According to the International Copper Association, the global copper demand is expected to grow by 2.6% annually until 2030, reaching 30.8 million tonnes.
Critical Metals is one of the many companies that are tapping into the copper potential of the DRC, which is the largest producer of copper in Africa and the fourth-largest in the world. The DRC has a favorable mining code, a stable political environment, and a supportive government keen to attract foreign investment and diversify its economy.
Critical Metals aims to become a leading copper producer in the DRC and to create value for its shareholders, employees, and communities. The company is committed to operating responsibly and sustainably, respecting the environment and human rights, and contributing to the social and economic development of the country.
Source: Mining Weekly
