Jinduicheng Molybdenum Mining Corp to Expand Sales in Japan

Jinduicheng Molybdenum Mining Corporation of China, the thirdly largest molybdenum producer in the world, aims to expand the sales of metallic molybdenum products in Japan. In Japan, the demand of metallic molybdenum is rapidly growing applied to liquid crystal panels and hybrid cars. The firm established a new plant in Xian, China in August 2009 and expanded the annual output capacity of metallic molybdenum by 50%. The firm seeks to raise the sales volume in Japanese market from current 1,000 tonnes per year, utilizing the new plant.

The firm’s output capacity of metallic molybdenum products, such as molybdenum powder, increased to 4,500 tonnes per year from previous 3,000 tonnes after the completion of the new plant. The major applications of metallic molybdenum are sputtering target materials for liquid crystal panels or automotive components applied to hybrid cars. The markets of liquid crystal panels and hybrid cars are expected to keep high growth while Japanese companies represent 80-90% shares in these markets.

In Japan, the sales volume of metallic molybdenum is increasing by 40% per annum. Jinduicheng Molybdenum Mining Corp tries to increase the sales more in Japan where metallic molybdenum consumption would continue to increase.

Another positive factor is high grade ore produced in Jinduicheng Molybdenum Mining Corp’s mines. The firm owns two molybdenum mines in China and the both are to produce molybdenum only. Impurity content is less than other mines’ ore produced as by-product of copper. With this advantage, the firm also seeks to increase the sales of chemical products such as high purity molybdenum trioxide and ammonium molybdate.

Jinduicheng Molybdenum Mining Corp produces molybdenum concentrate at 15,000 tonnes of molybdenum per year. The annual production is 33,000 tonnes at Freeport-McMoRan Copper & Gold of USA and 22,000 tonnes at CODELCO of Chile. Jinduicheng Molybdenum Mining Corp is the thirdly largest producer in the world.