South China Morning Post reported that China Molybdenum Company Ltd. (HKEX:3993) is on the hunt for more acquisitions after acquiring an Australian copper mine from Rio Tinto Ltd. (ASX:RIO,LSE:RIO,NYSE:RIO).
Li Chaochun, chairman of China Molybdenum, commented:
We’ll prefer mining assets in developed countries or regions with stable political conditions. We are bullish on copper over the long run. It is one of our investment priorities. We’re also studying other metals.
Higher speciality steel grades require more molybdenum. China’s increasing demand for high-strength alloys, used from offshore drilling platforms to oil pipelines, and molybdenum chemicals used in refining catalysts, will push up the metal consumption over the long run.
The market news states:
While molybdenum mines were opening up, smaller and inefficient mines were set to be closed, restraining the supply increase together with government measures to raise environmental standards against processors, Li said.
China might gradually remove its export quotas on tungsten and molybdenum by the middle of next year, Li said, after a World Trade Organisation panel determined in March that the country did not adequately justify its restrictions.