Huludao molybdenum mines to resume production
2006-02-07 18:07:11 【Print】
BEIJING (Asian Metal) 7 Feb 06 – Light seems to appear at the end of the tunnel for molybdenum stakeholders as Asian Metal has exclusive reports that Huludao-based molybdenum mines, which were forced to halt operation since early last year, are now to resume production beginning as early as March.
According to a local ferromolybdenum producer whose operations is solely dependent upon material from local molybdenum mines, three mines have been granted the operational license/certificate to begin production at the end of this month.
An official of the local government charged with the responsibility of overseeing the affairs of the mines would not want to speak to Asian Metal but did not deny it either, saying: “Wait until an official pronouncement is made, but it won’t be long to know the government’s position.”
To streamline the operations of these mines, the local government floated a new company christened Huludao Molybdenum corp. Ltd. to oversee and administer local mines, ending the disorderliness experienced in the past several years. To achieve this objective in the new dispensation, the mines have been reduced from 53 to 12, and three of them have already won bid before the Chinese New Year holiday and will begin production as early as March while others might begin to produce in April.
With a total output of molybdenum concentrate of around 2,000tpm in early 2005, Huludao-based mines have halted since March 2005, and only several small mines keep producing in 2005, with a total output around 100-200tpm of molybdenum concentrate. Most of local ferromolybdenum smelters imported their 80% of molybdenum concentrate from foreign markets.
Although international ferromolybdenum market has softened a little these days, Chinese molybdenum concentrate price remains relatively high because of the tight supply. So most of Chinese ferromolybdenum smelters keep halting due to little profit margin, expecting these molybdenum mines to resume production. "
"That's really a good news," remarked a consumer, "If all Huludao-based mines resume production in April, the current tight molybdenum concentrate market situation will be changed, and the local disorderliness will end."
