Panoro Minerals Signs Molybdenum JV

JV Signed With Peru's Centauro

Canadian mineral exploration company, Panoro Minerals Ltd has signed a joint-venture agreement with Peru’s Chancadora Centauro for the development of the Antilla Copper Molybdenum Project in Peru.

Centauro will make cash payments of US$8 million to the Panoro and will invest US$17 million into the Antilla Project in order to earn 70% interest over a 30 month period. Centauro will pay $1 million upon signing, $4 million within 90 days and the final $3 million within 20 months. The US$17 million investment will be directed towards the completion of bankable feasibility studies on the project.

Panoro will use the cash proceeds from the Antilla JV agreement to advance its 100% -owned Cotabambas copper gold project where the company recently completed agreements with two local communities. The company is planning infill, step out and exploration drilling aimed at increasing the resource.

Inmet Raises $500 For Panama Minerals Project

Toronto-listed Inmet Mining Corp. has arranged a $500-million equity for the development of its Cobre Panama copper, gold and molybdenum project.

Funding Raised Through Singapore Investment Company

The financing has been arranged through Ellington Investments Ltd, a subsidiary of Singapore-based Temasek Holdings. Temasek controls a portfolio of US$119 billion and has office in Asia and Latin America.

The placement will close at the end of April after which Ellington is to buy 9.25 million subscription receipts at $54.0049 each. The receipts can either be exchanged on a one-for-one basis for shares of Inmet, or about 14 per cent of its outstanding common stock.

Ellington has the option to nominate one member to Inmet's board of directors, as long as its or its affiliates own at least five per cent of Inmet.

Ellington has also agreed to hold its Inmet shares for at least a year, subject to certain conditions and the investing group will have the opportunity to maintain their proportional stake in Inmet if it issues more stock.

Chilean Company Buys Stake In China Molybdenum Subsidiary

Chile’s Molibdenos Y Metales S.A. has signed an agreement with China Molybdenum (China Moly) to purchase a 50% stake in its subsidiary, Luoyang High-Tech Molybdenum & Tungsten Material (LuoMo High-Tech). China Moly, a partly state-owned company, will own the remaining 50% of LuoMo High-Tech, which will be run as a joint venture.

The acquisition will help Molymet gain a foothold in the Chinese market, a key target for the company's overall growth strategy. The purchase price for the 50% ownership interest is USD37.7 million (Yuan 258 million) and is expected to be funded with cash on hand. The transaction will have a small leveraging affect on Molymet's balance sheet with net leverage increasing by 0.3 times (x) to around 1.0x from 0.7x net debt to EBITDA as of Dec. 31, 2009, still consistent with Molymet's rating category. Post-closing, liquidity is expected to remain strong with Cash to Short-Term Debt coverage at around 3.7x. In addition, Molymet also has access to available credit lines with 12 different banks totaling USD577 million.


This purchase is consistent with Molymet's publicly stated strategy of expanding its presence in China. LuoMo High-Tech is a Chinese metallic molybdenum producer. The transaction is expected to close in June following confirmation from Molymet and China Moly's boards, and final approval from Chinese authorities.

Peru's Gold Output Up, Silver Down

Peru's Energy and Mines Ministry has reported that the country’s gold production for February was 522,373 ounces, compared to 495,337 ounces in February 2008 – rise of 5.5%.

The increase was attributed to higher output at the Minera Barrick Misquichilca mine, as well as at mines owned by Compañia Minera San Simon, Companña Minera Podersoa, Minera Suyamarca and Minera Laytaruma.

Peru also mined 9,596,228 ounces of silver last month, an 11% decrease compared to February 2009’s 10,819,793 ounces of silver were produced.

Meanwhile lead production declined by 11% over the past year, tungsten dropped by 2% and molybdenum rose 13% during the same period.

Victory Moly Encouraged By Mahala Results

Australia’s Victory Moly (ASX: VWM) has completed a detailed, three-dimensional, double-offset dipole-dipole Induced Polarisation (IP) geophysical survey over the Anomaly B prospect area at the company’s Malala Molybdenum Project, Sulawesi, Indonesia.
The IP survey was conducted by Khumsup Limited, an internationally recognised geophysical contracting company with specialised expertise in the acquisition of this style of IP data.
Perth-based Southern Geoscience Consultants (SGC) has undertaken data processing, modelling and interpretation.

The IP survey covered an area 3.2 km x 2.6 km centred on Anomaly B and was designed to identify the mineralised corridor believed to have the highest prospectivity for economic concentrations of molybdenum mineralisation.
Preliminary interpretation indicates the IP survey has defined the structurally-controlled contact zone between the Tinombo metasediments (highly chargeable) and the relatively less chargeable Malala Porphyry.

The total combined prospective length of these contact zones is now in excess of 4kms (the “Identified Contact Zone”) representing a significant increase to the Company’s existing target mineralisation area at Anomaly B.

Work to date at Anomaly B (exploration target of 105-115mt @ 660-900ppm over approximately 800m of the contact zone) is located within the north-eastern section of the Identified Contact Zone has demonstrated significant molybdenum mineralisation, which can be up to 250m true width.

Several historical drill holes have been completed within a corridor approximately 1km long on this contact at Anomaly B, with a number returning very significant mineralised intersections including; 234m @ 1,680ppm Mo (M12), 363m @ 600ppm Mo (M30) and 245m @ 1,200ppm Mo (M37).

The remaining part of the Identified Contact Zone (more than 3km), to the south-east and south-west, appears extremely similar to the north-eastern zone and remains largely untested by drilling providing significant demonstratable upside for the company to investigate.

The company said it is highly encouraged by this initial data and is on track to complete a comprehensive and detailed geological interpretation within the coming weeks.

During 2010, Victory West Moly has proposed to undertake a detailed drilling program to prove up the company’s initial Exploration Target, followed by an aggressive campaign designed to evaluate the remainder of the highly prospective contact zones with the objective of significantly increasing the company’s exploration target.

Losses Increase At Beowulf Mining

AIM-listed Beowulf Mining has announced a 30 per cent increase in unaudited losses for the year to 31 December 2009. The company, which is exploring mineral deposits in northern Sweden, announced losses of £520,096 – up from £398,664 in 2008.

The company also announced that ongoing metallurgical tests at its Ruoutevare Iron Titanium Project have to date produced a final high grade product of sponge iron containing 95% iron and 1.5% titanium.

During the year the company signed a new earn-in joint venture agreement signed with Energy Ventures Limited (EVE) for its Ballek joint-venture, replacing Agricola Resources Plc. EVE have commenced a 1,600m drilling programme at the Ballek joint venture with results anticipated by the end of April of this year.

Beowulf also acquired Agricola's Swedish assets, comprising a package of five highly prospective gold, copper, nickel and uranium exploration licences at Geddaur in northern Sweden as well as securing an exploration licence for Sweden’s largest molybdenum deposit at Munka. The company is said to be looking for other assets to complement and extend its project portfolio.

Commenting on the results Clive Sinclair-Poulton, Executive Chairman of Beowulf said:"Despite a challenging backdrop of global economic uncertainty, Beowulf made significant progress during 2009 and now has an enhanced project portfolio and a new joint venture partner in the form of EVE. Demand for commodities has recovered strongly and we look forward to reporting further progress during 2010."

During the year the company raised £500,000 in working capital via a share placement at a price of 2p per share.

No dividend will be paid.

Property Lifts Xiamen Tungsten Profits 40 Per Cent

Xiamen Tungsten Co, Ltd, China's largest producer and exporter of tungsten and molybdenum products, said on Wednesday that net profits increased 40.49 percent to 467 million yuan ($68 million) last year.

In unaudited financial statements filed with the Shanghai Stock Exchange, the company said that it expects the earnings-per-share to be 0.31 yuan, up 7.43 percent year on year.

The company attributed the profit to increased revenues made at its property subsidiary.

Southern Copper Sees Prices Remaining Strong In 2010

Southern Copper Corp - a subsidiary of Grupo Mexico - said on Tuesday it expects average copper prices of $3.25 per pound in 2010, as it expects demand to be boosted by emerging and developed economies.

The price of copper rose 140 percent in 2009 on strong Chinese buying and supply concerns, but fell 8.5 percent in January as rising inventories suggested demand outside China was weak. Current price is a little over $3 a pound.

"We believe that inventories of copper will start to die off during the year, reversing the last month's trend," Southern Copper's Chief Financial Officer Genaro Guerrero said on a conference call with buying from emerging economies like China supporting prices through this year. Mr Guerrero also said that he expected consumption to rise in developed countries.

Southern Copper estimates copper production for this year at 500,000 tonnes, slightly above the 485,376 tonnes it mined this year, with molybdenum production forecast at 18,500 tonnes, in line with last year's output. Zinc sales this year are expected to be around 110,000 tonnes and silver sales to come in near 16 million ounces.

The company's 2010 copper forecast does not include potential output from the Cananea copper mine in Mexico, which usually produces around 20 per cent of the company’s copper but which has been closed by a strike for two years. The company was not able to give an estimated date for production to re-commence at Cananea.

Earlier this week copper trader Mr David Threlkeld said he expected the price of copper to plunge to around $1 a pound as he believed there to be much higher inventories than have been reported.

Molybdenum Prices Continue To Slide

Molybdenum prices are continuing to slide, reflecting the market's poor fundamentals. But there is debate within the marketplace about futures prices since some analysts say they weaken further in early 2010 while at least one producers see a demand surge ahead.

Steel mills are working down moly inventories this month and ordering little new stock, according to alloys/ferroalloys buyers at two steel mills, so the spot price have slipped to an average $10.75/lb this month from an average $11.01 in November and the peak of $16.64 in August.

Last summer, the mills were buying moly extensively just prior to the dramatic pickup in weekly carbon steelmaking output that has since stalled. Atop that, "the mooted revival in the stainless steel industry has failed to materialize," says independent consultant Angus MacMillan.

Traders have told AMM.com they expect business to be slow through year's end, which is similar to the commentary from those responding to this month's Purchasing.com buyers' survey. They see December as a lackluster buying for molybdenum. That meshes with a trader's comment to AMM.com that "December is going to be a tough month because deliveries are going to be cut back because of the holidays and people don't want to hold inventories toward the end of the year."

Looking ahead, Kevin Loughrey, CEO of moly producer Thompson Creek Metals, tells a mining conference in New York that steelmaking activity likely will pick up in January, raising molybdenum demand. He says the Colorado-based company expects demand to increase due to recovering economic activity and new uses for the metal, while supply could be constrained by delayed development of new mines caused by the global financial crisis. Loughrey expects global demand for moly to rise to 600 million lbs by 2015 from about 460 million lbs this year.

Source: Purchasing.com

China Moly Sells Stake In Subsidiary To US Firm

China Molybdenum Co, China's second-biggest molybdenum producer, announced yesterday that it has agreed to sell a 50% stake in wholly-owned subsidiary Luoyang High Tech Molybdenum & Tungsten Materials to Molymet Corp, a U.S.-based company mainly engaged in the production and sale of molybdenum products and related by-products.

The Hong Kong-listed company said in statement that the purchase price will be around 50% of the appraised value of Luoyang High Tech, which will not exceed RMB 500 million.

The buyer will settle the deal by means of a one-off cash payment, according to the statement.

China Molybdenum said that the sale of the stake in Luoyang High Tech will convert the subsidiary into a Sino-U.S. joint venture with a focus on the production and sale of molybdenum metal products. Luoyang High Tech will benefit from Molymet's strengths in technology, marketing and management, which will improve its product quality, market share and management standards.

Luoyang High Tech's business includes the production of molybdenum powder, tungsten powder and related products.

Source: China Knowledge

Chile Copper Production Up Almost 8 Per Cent

Copper output in Chile, the world’s biggest producer, rose 7.8 percent in August from a year earlier after state-owned Codelco and BHP Billiton Ltd. boosted production, the government said.

Output increased to 459,823 metric tons from 426,689 tons a year earlier, the country’s national statistics agency said in a statement distributed in Santiago today.

Codelco, based in Santiago, is the world’s biggest copper producer. Melbourne-based BHP, the largest mining company, owns 57.5 percent of Chile’s Escondida, the world’s biggest copper mine.

Production of molybdenum, used for stainless steel making, rose 27 percent to 3,164 tons from 2,495 tons a year earlier, the agency said.

Source: Bloomberg

China To Cut Export Taxes On Steel, Metals

China will scrap or cut export taxes on a range of grains, metals and other materials from 1 July. The move is aimed at boosting exports from domestic producers. Export taxes for wheat, rice, soybeans, and sulphuric acid will be eliminated.

Export taxes on some steel products will be halved to 5 percent, and the taxes for indium and molybdenum will also be cut from 15 to 5. The tax on some tungsten products will also be cut to 5 percent from 10. The country will also extend the low-season taxes for some fertilisers.

Source: CCTV

Moly Prices Moving Up

Molybdenum prices have been moving steadily higher over the last month and are now approaching $10/lb, but any significant gains in the price will be curtailed by the threat of increased supply by producers, say analysts at New York-based Dahlman Rose & Co.

Molybdenum, which is used to strengthen steel, traded on the spot market above $30/lb during the first half of last year, but fell off sharply in October, bottoming at below $8/lb in April.

Strong demand from China and increased steel utilisation in the Western market is increasing demand for molybdenum, analysts Anthony Young and Anthony Rizzuto wrote in a research note on Friday.

Chinese steel production bottomed at approximately 425 000 metric tons in October, while production in China now stands at approximately 528 000 t, annualised for the month of April.

“This increase in steel production, coupled with the low price of molybdenum is forcing China to increase molybdenum imports,” the analysts said.

Further, US steel production is also creeping up, with steel utilisation at US mills up to 46.2%, compared with 41.2% in early April.


However, although demand appears to be firming, the supply capacity that was taken offline when prices fell creates an “overhang” on how high prices can rise in the near term, said Young and Rizzuto.

In China, the high production costs at many of the smaller mines in the country has forced operations to close, and they estimate that as much as 30% of Chinese production may be offline.

However, as prices edge higher, this production will likely resume.

Further, while miners Freeport-McMoRan Copper & Gold and Thompson Creek Metals have each cut around 10-million pounds of molybdenum production - equating to about 5% of global supply – this output could likely be returned to the market relatively quickly.

If prices go high enough, Freeport-McMoRan could also make the decision to develop its Climax project, which could add another 30-million pounds of supply within a year to 18 months.

This will create a cap on prices in the near term, as higher prices will result in increased supply of the metal.

“While we anticipate that molybdenum prices will trend somewhat higher over the long-term, as the world again becomes constrained with respect to supply, in our opinion it will be difficult for molybdenum prices to trend significantly higher over the near term, until a significant portion of the supply which is sidelined is brought into production and consumed,” the analysts said.

Source: Mining Weekly

Thor Committed To Molyhill Project

Thor Mining PLC said development of its its Molyhil tungsten molybdenum project in Australia - and, in particular, financing - still continues to be a high priority.

It also continues to investigate alternatives to reduce capital and operating costs there, the group said in a quarterly update. Financing discussions have been positive to date, however the mood is still very cautious in the current financial climate.

The selling price of molybdenum roasted concentrates has reduced slightly during the quarter to end-March and showing some signs of support at US$8 per pound. The selling price of Tungsten APT has reduced slightly to between US$210 and US$225 per metric ton unit.

Demand for the commodities has increased slightly over the period, with worldwide stockpiles nearly exhausted. Demand is showing signs of improvement for the remainder of the year, as the steel industry shows increased production levels, Thor added.

In a separate statement it announced it has appointed Daniel Stewart & Co PLC as its nominated adviser and broker.

Source: Proactive Investors

Peruvian Copper Production Up 25 Percent In January

The Peruvian government's Mining Ministry has released the country's mineral production figures for 2009. Copper, zinc and silver all rose - copper by over a quarter - compared to January of last year. However, lead production fell slightly.

The government relies on minerals for most of its revenues.

The figures along with a comparison with January 2008 are as follows:

Copper: 106,796 tonnes (up 25.89 pct),
Zinc: 136,531 tonnes (up 5.22 pct),
Gold: 13,853,518 fine grams (down 4.04 pct),
Silver: 307,166 fine kg (up 9.04 pct),
Lead: 27,038 tonnes (down 4.34 pct),
Iron: 336,253 tonnes (up 14.12 pct),
Tin: 3,434 tonnes (up 0.91 pct),
Molybdenum: 1,474 tonnes (up 85.41 pct)

Antofagasta Copper Production Up In 2008

Chilean copper miner Antofagasta Plc posted higher copper output for 2008, though molybdenum output fell by almost a quarter.

The company said in a statement its copper output last year rose to 477,700 tonnes, up from 428,100 tonnes in 2007 and a rise of 11.6 percent - however, fourth-quarter production fell 2.7 percent from Q3 to 120,400 tonnes.

Molybdenum output for 2008 fell 23.5 percent to 7,800 tonnes.


Antofagasta said on Tuesday it was conducting a review of its assets and any impairments would be reported when it releases financial results on March 10. It has already said that its Lince open pit will close as falling metals prices have affected its viability.

Thor Focussed On Molyhill Project

Thor Mining PLC said developing the Molyhill tungsten-molybdenum project in Australia remains its main focus and that it has met with many potential financiers and partners with a view to getting the project into operation.

“The discussions have been very positive to date, however the mood is cautious in the current financial climate, “ the group said in an update for the quarter to end-December 2008.

Investigation of alternatives to reduce capital and operating costs for the project continue.

The quarter saw a fall in the selling price of molybdenum roasted concentrates from US$32 per pound to the steady state of US$10/lb. The selling prices of tungsten ammonium paratungstate (APT) have remained steady between US$235 and US$245 per metric ton unit during the same period. The outlook for both commodities continues to be optimistic with increased demand expected in the coming year, Thor said.

The metallurgical test work on the suitability of the magnetite concentrate for various applications is ongoing with positive early results and encouraging feedback from potential customers.

Source: Proactive Investor