Antofagasta to Reduce Molybdenum Output by 33% in 2008

Chilean major copper producer, Antofagasta plans to reduce the molybdenum output by 33% for 2008 from 2007, when the firm increased the output by 4% to record 10,200 tonnes from 2006. The firm estimates the output decreases to 6,800 tonnes in 2008 due to lower grade ore. The firm produces molybdenum as byproduct of copper at Los Pelambres mine. The firm is no.2 molybdenum producer after CODELCO in Chile. The firm increased the molybdenum output to 9,800 tonnes in 2006 and to 10,200 tonnes in 2007 from former record 8,700 tonnes of molybdenum in 2005 as 2003. The firm expects the output decreases by 33% due to ore with 0.019% of molybdenum content compared with 0.028% in 2006 and 0.03% in 2007. The firm develops Esperanza deposit to produce 2,100 tonnes of molybdenum by 2015 as byproduct of copper when the firm develops the copper mine to produce annualized 195,000 tonnes of copper in 2010 for around US$ 1.5 billion. The firm produces also 229,000 ounce of gold and 1.6 million ounce of gold at the mine.