By Carole Vaporean
NEW YORK (Reuters) - Freeport-McMoRan Copper & Gold Inc (FCX.N: Quote, Profile, Research, Stock Buzz) expects demand for molybdenum to remain strong, but only supply and demand factors can determine whether metal added to the market by reopening its Climax mine would cause prices to fall, said Richard Adkerson, chief executive officer of the world's largest molybdenum miner.
"We anticipate the (molybdenum) market being good. It's roughly a 450-million-lb world market and we're adding 30 million lbs to that. So that's a significant change," the CEO said to Reuters at this week's Global Mining Summit.
Adkerson was referring to the Phoenix, Arizona-based miner's plans to restart its Climax molybdenum mine near Leadville, Colorado, which has stood idle for 13 years.
Asked whether he thought molybdenum added from Climax would lower global prices, he answered, "Supply and demand. It all depends what goes on from a demand standpoint. But moly consumption has been strong."
He said he sees many positive factors in the marketplace for molybdenum, a metal used mostly in stainless steel.
"In today's world," he added, "it is also used in special alloy steels. China is a big consumer, but it's also used in oilfield drilling. Drilling wells to 20,000 feet requires special casings to be able to produce at those levels."
Molybdenum is also used as a catalyst in some chemical markets and in certain oil refinery applications.
Adkerson said Freeport would work to capture market share in both the chemical and metallic molybdenum businesses. Continued...
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