Molybdenum and Stainless Steel -

about Mines and Markets

Dr. Hans Imgrund

Prospects for the development of the Russian

stainless steel market

Chelyabinsk, 22nd March, 2007

International Molybdenum Association
Rue Père Eudore Devroye 245 · 1150 Brussels · Belgium
Tel: +32 2 770 8878 · Fax: +32 2 770 8898
E-mail: info@imoa.info · www.imoa.info
 Molybdenum

• Properties and uses

• Sources
• Market observations

2
 Molybdenum

• Properties and uses

3
 First Use of Molybdenum
6%
Stainless Steel
14% 25% Constructional Steel
Tool & High Speed Steel
Cast Iron
Superalloys
5%
Chemicals
Mo metal
6%

9%

35%

Total 2006: approx. 425 million lb – 190,000 t

4
Source: IMOA Estimates
 Molybdenum Metal & Alloys
Properties

High melting point – 2610°C

Courtesy of Plansee
• High hot strength
• High wear resistance
• Good corrosion resistance

High temperature vacuum furnace

5
 Molybdenum Metal & Alloys
Uses

• Glass melting electrodes

• High temperature furnaces

Courtesy of Plansee
• Halogen lamps – sealing and
supporting wire
• Electronic industry – high power
semi conductor parts
• Mo spray wire and sputtering
targets for coating applications
• Metal and plastic forming TZM piercing plug for
6 rolling stainless steel tubes
 Molybdenum in Alloy Steels

Molybdenum is almost always used in combination

with other metals including

• Chromium
• Nickel
• Vanadium
• Tungsten
• Niobium

moly grade steels are usually required for high

end applications
7
 Effects of Molybdenum
In tool steels (average Mo 0.8%)
and in high speed steels
(average Mo content 5%):

• moly enhances hardenability

• contributes to secondary
hardening

Courtesy of Boehler Uddeholm

• is an important constituent
of the primary M6C-carbide
(hardness > 2000 HV),
which confers wear resistance
8
 Effects of Molybdenum
in constructional steels &
high strength low alloy steels-HSLA
(Mo content 0.1- 1.2%)
moly enhances

• hardenability
• strength and toughness
• weldability
• elevated temperature strength
• resistance to sulfide stress cracking
9 Orbis photo
Oil rigg with drill pipe
 Uses of moly grade constructional steels/HSLA
Applications cover the whole energy chain from raw meterial
production through end use:

•Quenched & tempered (Q&t) CrMo seamless oil contry tubular

goods.

•HSLA pipelines for Oil and Gas

•High temperature CrMo and CrMoV grades for petrochemical

processing and energy generation.

10
•Q & t CrMo engineering steels in automotive, shipbuilding,
aerospace
 Uses of moly grade constructional steels

11
Energy generation Oil & Gas transportation
 Uses of moly grade constructional steels

Courtesy of Plansee
Gears made of CrMo carburising for everything that moves
steel…

12
 Effects of Molybdenum

in stainless steels
(average Mo content approx.
2.2%)

• moly improves corrosion

resistance

13
 Use of moly grade stainless steels
• About 10 % of world stainless steel production is
molybdenum grade with average 2.2% Mo

• Moly grade stainless steels are invaluable in

• industrial processing such as

• chemical, petrochemical,
• pulp and paper
• oil and gas,
• power generation

Corbis photo
14

Petrochemical Processing
 Use of moly grade
stainless steels

© Ulrich Otte (Stadt Düsseldorf), Germany

Stainless steel has
become the material of
choice for many
architectural uses
around the world

15

Zollhof, Düsseldorf
 Use of stainless steel - grade selection
is critical.

Nobody likes
stainless steel which
is rusting.

Moly-grade stainless
steels are resistant to
de-icing salt or
coastal air attack.

16
 Use of moly grade stainless steel

AISI 316 stainless steel

with 2,2 % Mo has
replaced aluminum at
Brussels Atomium.

17
 Molybdenum

• Sources

18
 Global Production - Geographically
7%
19% Southamerica
Northamerica
China
CIS & Mongolia

38%

36%

Total 2006: 425 million lb – 192,000 t

19

Source: IMOA; Adams Metals

 Global Production – Mine Types
By-product West
24%
Primary West
China & CIS

60%
16%

Total 2006: 425 million lb – 190,000 t

20

Source: IMOA ; Adams Metals

 Molybdenum from Primary Mining

Calculation example:

• Ore grade 0.2% Mo yielding 1.8 kg/t Mo in concentrate

• Producing 1 t of Mo ctd requires 550 t of ore

• Annual production of 10,000 t Mo contd. in MoS2 concentrate

requires mining and milling
5.5 million t of ore (approx. 20,000 t per day)

The initial investment for a primary mine usually requires

several hundred million US Dollars.
21
 Molybdenum from Primary Mining

Courtesy of Climax Molybdenum

22
Henderson operational schematic
 Molybdenum By-product from Copper Mining

Courtesy of Kennecott Utah Mine Corp.

23
 Molybdenum By-product from Copper Mining
• Copper mines producing molybdenum as byproduct usually have
ore grades falling between 0.5% and 1.5% Cu (5 to 15 kg/t) and
between 0.01% and 0,05% Mo (0.1 to 0.5 kg/t).

• Major operations mine more than 50 million tons of ore per year,
producing in excess of 200,000 t of copper and between 5,000
and 15,000 t Mo contained in MoS2 concentrate as by-product.

• The revenues from molybdenum are usually less than 10% of

total sales.

• Consequently the moly output of these mines follows the copper

24
market rather than the demand for molybdenum.
 Molybdenum supply structure

450
CIS-Mongolia By-product and Chinese
400 China production increases
350 Western By-Product
MM lbs. Molybdenum

significantly
Western Primary
300
250
200
150
Climax mine
100
started: 1918
50

25
0
1920 1930 1940 1950 1960 1970 1980 1990 2000 2005
Source: Climax Molybdenum, presented at Ryans’s Notes Conference 2005
 Molybdenum

• Market Observations

26
 Global Molybdenum Use
450

400

350
MM lbs Molybdenum

300

250 AGR 2000 – 2005:

200 6.0 %
AGR 1990 – 2005
150 3.5%
100

50

0
1990 1992 1994 1996 1998 2000 2002 2004 2006
27

Source: IMOA; Adams Metals

 Molybdenum Price Driven by Energy-
and by China Demand
$35

$30

$25

$20

$15
$/lb Mo
$10

$5

$0
1970 1975 1980 1985 1990 1995 2000 2005
28
Source: Metals Week Dealer Oxide Price
 Molybdenum Price and Price of Crude Oil
1970 through 2005
$40

$/Barrel Crude Oil

$30

$/lb Mo
$20

$10

$0
1970 1975 1980 1985 1990 1995 2000 2005
29
Source: Metals Week Dealer Oxide Price; Oilenergy.com
 By-product and China-Production Increased
Significantly Since 1990
350
China
310
Production (Million lb Mo)

300 By-product
252
250

200

150

100

50

0
1990 1992 1994 1996 1998 2000 2002 2004
30
Source: IMOA
 Moly Price Was Below $ 4.00/lb in 10 of
the Last 15 Years
$20

$16 $/lb Mo
US $/lb Mo

$12

$8

$4

$0
1990 1992 1994 1996 1998 2000 2002 2004
31
Source: Metals Week Dealer Oxide Price
 Molybdenum Price and Western
Primary Production
$20 100
90
$16 80
70
US $/lb Mo

Production
Million lb Mo
$12 60
50
$8 40
30
$4 20
10
$0 0
1990 1992 1994 1996 1998 2000 2002 2004 2006

6 mines 2 mines 4 mines

32

Source: IMOA; Metals Week Dealer Oxide Price

 Molybdenum Market: Demand and Price

$20 450
399

Consumption (Million lb)

375 400
$16
340 350
310 310 310
$12 294 297
US $/lb

276 280 285 300

252 260
240 234 250
$8 228

200
$4
150

$0 100
1990 1992 1994 1996 1998 2000 2002 2004
33
Source: IMOA; Metals Week Dealer Oxide Price
 Molybdenum Market: Demand Change and Price

$20
55

$16 45

Demand Change
Million lb Mo
35
US $/lb Mo

$12
25

$8 15

5
$4
-5

$0 -15
1990 1992 1994 1996 1998 2000 2002 2004 2006
34
Source: IMOA; Metals Week Dealer Oxide Price
 New Primary Molybdenum Mine Projects

Mine Expected Annual Status Production Start

Capacity Indicated
(Million lb Mo)
Roca Mines - Max Moly Canada 2.5 Under construction ???
Bluepearl Davidson Canada 5 to 10 Feasibility study end 2007
PD Climax mine USA 20 to 30 Conditionally approved 2009
Mt. Hope Nevada USA 35 Currently being permitted 2009
Adanac - Ruby Creek Canada 10 Feasibility study 2009

A comprehensive list of new molybdenum projects, including a number of

by-product expansions, can be found under www.infomine.com
35
Source: Company Reports
 Estimated Western Roaster Utilization Rates
Western Roasters: Utilization of Available Time
120

100
100
94
% Utilization

80
77
60

40

20

0
2003 2004 2005
36
Source: Climax Molybdenum, presented at Ryans’s Notes Conference 2005
 Projection of Western Roasting Capacities

450 Europe
400 Northamerica
350
Southamerica
Million lb Mo/Year

300
250
200
150
100
50
0
2006 2007 2008 2009 2010
37
Source: IMOA, Company Reports
 Global Molybdenum Reserve Base
8%
Southamerica
Northamerica
China
16%
CIS & Mongolia
43%

33%

Total 19 million metric tons Mo ctd. – worth 100 years of present use
38
Source: US Geological Survey 2006
 World Stainless Production & Molybdenum
Use
450 30.000

400
25.000
350

M tons Stainless Steel

MM lbs Molybdenum

300 20.000

250
15.000
200

150 10.000

100
5.000
50

0 0
39 1990 1995 2000 2005
Source: IMOA; Adams Metals
 Everything that glitters is stainless –
and moly is happy to be part of it.

Courtesy of Outokumpu
Thank you

40