Moly Mines Ltd (TSE:MOL,ASX:MOL) announced its entry into debt facilities with China Development Bank Corporation so the company may develop the Spinifex Ridge property.
Australia’s new “Super Profit” tax on mining companies may scare off investment and hurt the profitability of mining operations, say analysts. However, economists and government officials disagree. After billions of dollars worth of investments into molybdenum operations in Australia, how will this proposed tax affect the mining industry?
New uses for molybdenum in renewable energy sources may bring a new lucrative market for the metal. Used as a substitute for cost prohibitive platinum, moly is being used in the generation of Hydrogen gas. Also, the Sichaun Hanlong-Moly Mines deal grows as Hanlong commits up to $5 billion for infrastructure projects in Australia.
Chinese firms now control 30 percent of the world’s Molybdenum reserves. In an effort to control the rising costs of steel production, China may be trying to control other minerals needed for alloys, mainly molybdenum. Also included, a market wrap-up of companies that stand to gain from a resurgence of steel demand worldwide.
Moly Mines Ltd. secures financing from Chinese Firm, Hanlong Mining, continuing the frenzied rush to finance Molybdenum operations. Also, new developments from earthquake-rattled Chile as International PBX Ventures starts drilling.
China is set to cut export duties for unwrought molybdenum and molybdenum powder to 5% next year, from 15% and 10% respectively, this year. How will this affect moly prices?
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