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Codelco / Chile Applies For Environmental Assessment To Construct Moly Plant
= Plant In Mejillones Area To Roast Molybdenum
According to an information from Chilean newspaper, Codelco of Chile recently announced that their sales of such by-products as molybdenum, gold. zinc, and so on in the calendar year ( January - December ) of 2007 are anticipated to amount to US$2,200 million.

This report said that, in order to cover a raise of costs and an aftereffect of the cave-in occurred on the end July of 2006 at the Chuquicamata open-pit mine ( caused to decrease copper and molybdenum production ), it is necessary for Codelco to increase the sales of by-products.

Under the circumstances, Codelco has been proceeding to construct new plant for molybdenum production ( roaster ) in Mejillones area, where is the industrial zone located in coast of Chile, and announced that, in September of this year, the Company has applied the authorities concerned for an approval of environmental assessment.

At present, Codelco has possessed one furnace to roast molybdenum concentrates but its roasting capacity is insufficient in comparison with their output of molybdenum concentrates ( scheduled to produce 50 - 52 million lbs. of molybdenum in concentrates in the calendar year of 2007 ). Therefore, Codelco has decided to increase the capacity for roasting. Mejillones area is the promising industrial zone located in northern coast of Chile with a distance of 50 - 60 kilometers from the Antofagasta copper mine and also comparatively near place from the Chuquicamata copper mine.

For a reference, Codelco once had the negotiations on a large project, which consigns to roast molybdenum concentrates on toll base for the coming 10 years to start from 2010, with its deadline on the end September of 2007 but suspended it. This project is to roast 12,000 tons per annum of molybdenum in molybdenum concentrates on toll base.

Codelco will produce 50 - 52 million lbs. per annum of molybdenum in concentrates, sharing 85% of the revenue of by-products, and molybdenum is an important item for Codelco. In order to cover a raise of costs, Codelco has to increase the revenue of by-products for the next several years and, accordingly, this matter has been considered by Codelco as an important operation. Therefore, Codelco said that the Company plans to invest US$500 million in the by-products business to recover such metals as molybdenum, gold, silver and nickel.
last modified : Thu 29 Nov, 2007 [11:12]
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