r/metals

Hey all, i wanted to get peoples onions on an idea I’m looking at.

I’m still in the early stages of thinking this through, so I’m not looking for a business plan review. More just curious what people’s experience is and whether they think this is even possible for a first-time operator.

The broad idea: start a small commodity trading operation focused on niche critical minerals, sourcing from Sub-Saharan Africa and selling into the US market. The reason I want to stay niche is simple. You don’t want to compete with Glencore. Operating in a smaller, more specialised corner of the market means you’re not going up against players with decades of relationships and balance sheets that dwarf anything a startup could put together.

A bit of background: I spent a few years in metals and mining coverage at a bulge bracket bank in NY, so I have a decent grasp of deal structuring and commodity finance. I’m now doing a Master’s in Energy Economics at Colorado School of Mines, and I’m hoping to leverage the Mines network as I develop this. I also have a connection on the supply side through some family connections.

The goal for the first two to three years would be to get at least one deal closed as an agent, then at least one deal taking principal if all goes well.

So the key questions I am wanting to sense check:

1. Is this even viable for a solo startup operator?
   Anyone who has done something like this from scratch. What does the first year or two actually look like in practice?

2. Which minerals make more sense for a small operator? Within the critical minerals space, are there certain commodities that are more accessible in terms of buyer relationships, lot sizes, and logistics compared to others?

3. How do you succeed as a startup trader?
   Not the theory. What are the practical things that separate people who get their first deal closed from the failures.

4. Where does it break down?
   Operationally, what is the most common weakness for startup traders?

5. Financing without a track record
   This feels like the hardest part. To access working capital or government-backed financing like DFC or EXIM, you need a history. But to build a history, you need to trade. How do people actually break that cycle early on?

6. AI is very trendy nowadays but I assume it can help a lot by being a force multiplier for a one man show? What are the best ways people have been using it to make the most poignant impact?

Apologies for the long write up above would really love any tips before I jump into the deep end!