Molybdenum, one of the refractory metallics, is extremely resistant to heat and wear. These properties make the molybdenum sector an important part of the global economy.

This silver-gray industrial metallic was first discovered in 1778. It doesn't exist in the natural world and is often extracted from copper and tungsten. Although it can be found in powellite, wulfenite and molybdenite minerals, molybdenite is used as the main mineral to make molybdenum.

The International Molybdenum Association, (IMOA) states that 80 percent of molybdenum mined annually is used to produce stainless steel, cast iron, and superalloys. Molybdenum is a hard metal with high resistance to heat, corrosion and rust.

The molybdenum stock balance is used in chemical applications, such as paints and lubricants. It is also being used more in the oil and natural gas sector, where it is used in catalysts that reduce sulfur content in gasoline and diesel fuels.

Molybdenum Industry: Supply and Demand

According to the IMOA in Q2 2021, the production of molybdenum fell by 3 percent, to 142.8million pounds, whereas global consumption rose 32 percent, to 167million pounds.

The 2021 US Geological Survey reported that the world's molybdenum mining output increased to 300,000 MT in 2020, up from 294,000 in 2019. China is still the largest producer of molybdenum in the world, with 120,000 metric tons (MT), produced in 2020. South America is the second largest mining area for this versatile metal.

Chile, which produced 58,000 MT of molybdenum last year, is the largest producer among Latin American countries. Peru produced 30,000 MT of molybdenum, Mexico 17,000 MT.

Another top-tier producer is the USA, which produces 49,000 MT molybdenum. 2020 saw a 24% decrease in US imports for consumption.

The pipeline has seen an increase in applications and products that use the material.

Molybdenum is a metal that has excellent thermal conductivity and high resistance to corrosion. This makes it ideal for many technological applications. The metal has a lot to gain from the expanding industry.

Molybdenum Industry: How to invest

As previously mentioned, molybdenum can be mined as a byproduct of and other metalsspan styling="font-weight 400 ;">. There are other mines in the molybdenum sector that concentrate on the metal.

Climax Molybdenum, a Freeport-McMoRan subsidiary (NYSE:FCX), operates two molybdenum only mining operations in Colorado. Each year, the company can produce approximately 30 million pounds molybdenum.

Centerra Gold, TSX: CG ,NYSE:CGAUspan styling="font-weight 400 ;">)) has two molybdenum mining operations that are currently in care, but could be reactivated once prices rise. The mines were acquired by it through the 2016 acquisition of Thompson Creek Metals Company. Some molybdenum has also been recovered from the site's old mine tailings.

Taseko Mines (TSX:TKO,NYSEAMERICAN:TGB,LSE:TKO) produces molybdenum as a by-product from its 75 percent owned Gibraltar copper-molybdenum mine in Southcentral British Columbia.

Major firms that mine molybdenum as a by-product include Southern Copper (NYSE:SCCO), Rio Tinto (NYSE:RIO,LSE:RIO,ASX:RIO) and Anglo American (LSE:AAL,OTCQX:AAUKF).

You can also invest in companies that are developing or exploring molybdenum mines or extraction projects. Companies with molybdenum exploration projects include Starcore International Mines (TSX:SAM), Libero Copper & Gold (TSXV:LBC), Los Andes Copper (TSXV:LA) and Latin Metals (TSXV:LMS,OTCQB:LMSQF).

Follow us @11 Ways to Make Money_Resource for the latest news and updates.

Securities Disclosure - I, Melissa Pistilli have no direct investment in any company mentioned.

Editorial Disclosure. Libero Copper & Gold and Los Andes Copper are clients of 11 Ways to Make Money. This article is free to read.

By: Georgia Williams
Title: Investing in the Molybdenum Industry
Sourced From: investingnews.com/daily/resource-investing/industrial-metals-investing/molybdenum-investing/a-guide-to-molybdenum-investing/
Published Date: Wed, 17 Nov 2021 21:55:46 +0000

-----------------------------