In September 2022, Rio Tinto, a major mining firm, announced that it will spend USD 55 million to initiate underground mining and expand production at its Kennecott copper operations around Salt Lake City, Utah. Increased productivity and long-term sustainability are the objectives of the investment in the Kennecott mine, which is one of the largest copper producers in the US. By increasing underground mining , the additional copper reserves that cannot be accessed by surface mining methods will be extracted. Rio Tinto's desire to strengthen its resource base and meet the increasing demand for copper, a key element in the transition to sustainable energy technology, is in concordance with it.
In June 2022, Kennecott Exploration (KEX), a Rio Tinto subsidiary, partnered with Alderan Resources to explore copper and molybdenum deposits in the Copper Gulch prospect in Utah's Frisco copper project. For 10 years of exploration rights and an investment of USD 30 million, KEX forfeited 70% of the Frisco project as part of the deal. The significance of discovering new sources of copper and molybdenum, two critical metals used in a range of industries such as electronics, aircraft, and energy, is underscored by this strategic investment. The collaboration aims to serve current and future needs by enhancing the long-term availability of these critical commodities.
In March 2022, Chilean state mining company Codelco announced a drastic fall in its molybdenum production to 21 thousand metric tons of metal content. This was a fall of more than 25% compared to the previous year. One of the largest producers of copper in the world, Codelco, also announced that it produced 1.7 million metric tons of copper during the period. Lower molybdenum grades in the processed ore and reduced availability of some of the key mining assets were among the operational challenges listed as the cause of the fall in molybdenum production. In spite of this fall in molybdenum production, Codelco still maintained a high rate of copper production, cementing its position as the world's leading copper mining corporation.
In January 2022, a new collective bargaining agreement for Highland Valley Copper (HVC) mine workers with Teck Resources in British Columbia, Canada, was signed in January 2022. The agreement, arrived at in consultations with the United Steelworkers union, aimed at improving employee terms of employment and benefits. With its higher wages, enhanced benefits, and additional job security provisions, it reflected Teck's commitment to its employees and long-term business at the Highland Valley Copper mine, one of Canada's largest copper producers. With more financing for workplace safety programs and training, the pact also placed a high value on safeguarding the health and safety of employees.
As per Coherent Market Insights, the Molybdenum industry across the globe was worth around USD 283.45 billion in 2021 and is expected to reach USD 332.11 billion by 2029, exhibiting a compound annual growth rate (CAGR) of nearly 2% over this period.
Besides, growing demand for different types of steel such as stainless and structural steel alloys especially in China, also supports market growth. Nevertheless, molybdenum fumes and dust emitted during metalworking or mining could be poisonous when ingested and hence pose potential problems to market growth. In spite of these challenges, the molybdenum market continues to increase as a result of its critical application in the manufacture of steel and other uses.
