Molybdenum (Greek molybdos: lead). Discovered by Carl Wilhelm Scheele of Sweden in 1778. Before Scheele proposed that molybdenite is a distinct ore of a new element, it was confused with graphite and lead ore. Peter Jacob Hjelm – a Swedish chemist was the first person to isolate the element molybdenum in 1781, four years after its discovery. Molybdenum does not occur natively, but is obtained principally from molybdenite (MoS2). Wulfenite (PbMoO4) and Powellite (Ca(MoW)O4) are also minor commercial ores. Molybdenum is also recovered as a by-product of copper and tungsten mining operations. The metal is prepared from the powder made by the hydrogen reduction of purified molybdic trioxide or ammonium molybdate. Interseting fact is that the Russian Luna 24 mission discovered a single molybdenum-bearing grain in Mare Crisium on the Moon.

SPECTRUM Analytical Laboratory provides a detailed description of Molybdenum and its uses, among them: Nuclear energy applications; missile & aircraft parts; catalyst in refining of petroleum; the primary use of molybdenum is as a steel alloy. As such it is utilized in the arms industry, in aeronautical engineering, and in the automobile industry. The structure of Molybdenum Industry is very well illustrated on this graph:

Source: Richfied Group Limited Memo 21 Feb 2008

The same source provides the outline of production:

Two years ago, when the economy was in good shape Molybdenum was at its peak on the market. Freeport-McMoRan in their presentation in February 2009 gives a short overview of Molybdenum market:

The general numbers for the market are presented at the Web-page of Thompson Creek Metals:

• Worldwide molybdenum consumption about 470 million lbs in 2008
• Consumption growth: approximately 4% average annual rate in past 50 years
• 2007 growth in worldwide consumption: 6.4%

A detailed projections and the state of the World market as of 2008 is made in Thompson Creek Metals presentation that can be downloaded here. One of the graphs:

And also the list of major producers:

The world’s largest producers of molybdenum materials are the United States, Canada, Chile, Russia, and China. Porphyry copper deposits such as the Chuquicamata mine in northern Chile produce molybdenum as a byproduct of copper mining. The Knaben mine in southern Norway molybdenum has wulfenite and powellite. Detailed description of Molybdenum producers (a bit outdated, but shows all reserves and resources) is provided in Molybdenum Producers, Developers and Explorers by Orion Securities, Inc.

Due to recession the price of the metal dropped from $35 a pound late in 2007 to less than $10 early in 2009. However, August 2009 witnessed a re-birth and the prices have almost doubled, to $18. Immediately a couple of financing deals were in place: Thompson Creek Metals, one of the largest players in the market raised about $200M in a bought deal; Mercator Minerals received a $70-million financing. In another move, the London Metal Exchange announced August 27 that contracts for minor metals cobalt and molybdenum will start trading on the Exchange on February 22 next year.

That means that Molybdenum is now back in the market.

In the next post we will discuss Molybdenum production in Indonesia