As an alloy in steel, molybdenum enhances strength, weldability and toughness, which is why molybdenum is used in everyday applications like buildings, bridges, pipes, power plants, cars and computers.
Approximately 25% of all molybdenum produced is used to make moly-grade stainless steel. The increased consumption of specialty steel products has made molybdenum an increasingly important metal in our lives. Because of this, molybdenum demand between 2004 and 2008 rose over 35%.
This growth is mainly due to a strong worldwide initiative to invest in industrial infrastructure. This is particularly evident in China, where the rapid expansion of the Chinese economy is creating a demand for more industrial processing plants and new infrastructure.
With China’s need for molybdenum growing, coupled with tightened government regulations on Chinese exports, strong demand for molybdenum is expected to continue. The anticipated deficit in worldwide molybdenum supply will require significant new molybdenum production reaching 20 million pounds per year by 2014.
Included in ERD’s list of priority commodities are copper and gold. Copper plays a fundamental role in the industrialization of countries such as China and India. Both countries are rapidly urbanizing by improving infrastructure and upgrading power grids, as well as building new homes, automobiles, and electronic appliances. The continued global demand for copper is expected to remain strong and drive demand. Gold provides a balance to the company’s diversified portfolio given the continued purchase of gold by central banks, reinforcing gold’s significant role as a reserve asset. Erdene is evaluating copper and gold projects in the south and southwest regions of Mongolia, areas considered very prospective geologically for the discovery of new deposits.
