Rio Tinto molybdenum production up sharply in 1Q
Wed Apr 20, 2005 06:06 AM ET
LONDON, April 20 (Reuters) - World number two miner Rio Tinto Ltd/Plc's (RIO.L: Quote, Profile, Research) (RIO.AX: Quote, Profile, Research) production of molybdenum, a copper by-product, rose sharply in the first quarter of the year, due to higher metal grades.
In a statement, Rio said it mined 3,900 tonnes of molybdenum between January and March at its Bingham Canyon mine, up 141 percent from the year-ago level of 1,600 tonnes and 37 percent above the Oct-Dec 2004 level of 2,800 tonnes. Its total molybdenum output last year was 6,800 tonnes.
Prices of molybdenum, which in alloy form is used in steel-making, has soared to levels last seen in the late 1970s, boosting by-product credits for many copper producers.
Ferro-molybdenum (MLY-FERRO-LON: Quote, Profile, Research) is currently indicated at $73/78 a kg, having peaked near $100. Prices remain substantially above the long-term average, however, as in January 2004 the market was under $20 a kg.
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