Sojitz to Restart Mo Mine Expansion in Canada

Japanese major trade firm, Sojitz Corporation announced on Friday the firm restarts the capacity expansion of Endako molybdenum mine, British Columbia in Canada. Sojitz and Thompson Creek Metals invest about 500 million Canadian dollars to increase the annual production capacity from around 10 million pounds to around 16 million pounds in 2011. They try to meet the growing demand through the expansion while the mining operation improves the production efficiency and profitability by introducing the new facilities. The firms suspended the production expansion after global economy recession.

Thompson Creek Metals, which controls 75% share of Endako, decided to restart the capacity expansion of the mine in 2009 and has waited the approval by Sojitz to restart the expansion. The construction is scheduled to complete in late 2011.

Sojitz’s equity molybdenum production increases to 4 million pounds per year from 2.5 million pounds by the expansion.

Molybdenum annual demand is expected to increase from 450 million pounds to 765 million pounds in 10 years due to growing stainless steel and special steel demand in emerging countries while former exporting country China became the importing country and limits the export.

Sojitz has production sites of 6 rare metals in Canada, South Africa, Philippines and other countries while Japanese government designates 9 rare metals for national stockpile. The firm aims to invest rare metals to meet the growing demand.