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Molybdenum |
AIMR 2008 |
Molybdenum
Molybdenum (Mo) is used in steels and superalloys to enhance strength, toughness and corrosion resistance. The main commercial source of molybdenum is molybdenite (MoS2) but it is found also in minerals such as wulfenite (PbMoO4) and powellite (CaMoO4). Molybdenum is mined as a principal ore and is recovered as a by-product or co-product of copper and tungsten mining.
Resources
Australia's EDR of molybdenum rose from 0.4 kt in 2006 to 198 kt in 2007. This was due to large increases in economic resource at Spinifex Ridge (WA) and Molyhil deposits (NT). WA is the largest holder of molybdenum resources with about 98% of EDR followed by the NT with 1.6% EDR. All EDR is accessible for mining. JORC code reserves account for 99% of EDR.
Subeconomic demonstrated resources account for about 64% of total demonstrated resources. Qld accounts for 76% of subeconomic resources followed by WA with 22% and SA with 2%. In 2007, the paramarginal resources decreased by 67% to 93 kt, as a result of resources upgrades to EDR while the submarginal resources increased by 258.3 kt to 262 kt due to resource assessment. Inferred resources increased by 48 kt (11%) to 489 kt in 2007. WA and Qld account for 51% and 48% of inferred resources respectively.
Exploration
The rise in molybdenum price has led to increased molybdenum exploration, which has resulted in resource upgrades for several deposits. Data relating to exploration for molybdenum are not available nationally.
Production
There was no molybdenum production in Australia in 2007.
World Ranking
The distribution of molybdenum resources and production is concentrated in a few countries in the world, with China, USA, Chile and Canada holding about 88% of the resources. In 2007, world economic resources are estimated to be about 8800 kt based on USGS data.
USGS estimates that world production in 2007 amounted to 187 kt of molybdenum. The USA, China and Chile accounted for almost 80% of global outputs in 2007 with USA producing 59.4 kt followed by China with 46 kt and Canada with 41.1 kt.
Industry Developments
The world molybdenum price soared in 2007, reaching a high of US$38/lb from a low of about US$5/ lb in 2001 and it is forecast to continue rising in 2008. For almost 20 years the market has been stagnant, but has been transformed as a result of Ltd supplies and continued strong demand. China's high level of steel production and consumption has led to strong internal demand for molybdenum, reducing China's molybdenum exports and supporting the high prices. In Australia, feasibility studies for several projects were initiated because of higher prices.
In June 2008, Queensland Ores Ltd announced that the first tonne of molybdenum concentrate was processed at its Wolfram Camp tungsten-molybdenum project 90 km west of Cairns, in Qld. Commissioning of the treatment plant is underway and the company has indicated the first molybdenum concentrate shipment will be in 2008. Average annual production is estimated to be 120 t of molybdenum.
In 2007, Moly Mines Ltd completed a definitive feasibility study of a 20 Mtpa molybdenum-copper open pit mine and concentrator facility for the Spinifex Ridge project in the Pilbara region of WA. The initial 10 year mining operation will produce approximately 10.89 ktpa molybdenum concentrate and 12.25 ktpa copper concentrate. The company have indicated construction will commence in 2008 with production in 2009.
Thor Mining Plc has proposed an open cut mine and processing facility for the Molyhil tungstenmolybdenum project 250 km north east of Alice Spring in the NT. A definitive feasibility study completed in 2006 included a preliminary design for a 400 Mtpa operation with a mine life of more than 5 years. The company anticipate construction would start in 2008 with production commencing in 2009. Glengarry Resources Ltd is undertaking a scoping study to determine the economic viability of the Maitland copper-molybdenum deposit west of Townsville in Qld.
