Outlook for molybdenum mining in U.S.
Source: Rocky Mountain Construction
With molybdenum currently selling for more than $30 a pound, interest in the comparatively rare mineral is strong. Phelps Dodge's underground Henderson Mine near Empire, Colo. — currently the only operating primary moly mine in the country — is being considered as the site of a national Science Foundation underground science and engineering laboratory, and NSF representatives visited the mine in March. There is only one other site competing, and site selection is expected next year. The laboratory would operate while Henderson continues to be actively worked and long after the mineral deposits have played out and mining has ceased.
Meanwhile, Phelps Dodge continues a feasibility study of the proposed 2009 reopening of its Climax Mine near Leadville, Colo. The study will be completed in August. James Arnold, general manager of Climax Molybdenum, a PD subsidiary, said, "Climax is the best unmanned molybdenum orebody on earth right now." The ore is high grade and production costs to mine it would be low. There are about 500 million tons of ore that could be readily recovered at Climax, and reopening the historic mine and constructing an entirely new mill would cost an estimated $250 million.
Phelps Dodge continues to pursue authority to mine its molybdenum property on 12,392-foot Mount Emmons, adjacent to the ski resort community of Crested Butte in Gunnison County, Colo. The proposed Red Lady Mine has received most necessary approvals, but last month opponents of the project appealed their case to the U.S. Supreme Court. Western Mining Action, representing the opponents, contends that the 1872 Mining law that allowed Phelps Dodge to acquire the land for the mine at relatively low prices should be overturned because it favors private developers over the public's right to public lands. The Supreme Court has not yet announced whether it will hear the case.
In Nevada, Idaho General Mines announced last month that, based on ongoing drilling and evaluation work, the company anticipates its wholly owned Hall-Tonopah molybdenum deposit in Nye County will become its second major molybdenum development project. "While our main focus and effort is the permitting and development of the Mount Hope Mine near Eureka, Nev., we are excited to be able to continue to progress a second major molybdenum project," said Bruce Hansen, Idaho General CEO. "Hall-Tonopah is also one of the world's larger high-grade molybdenum deposits." Mining at Mount Hope is projected to begin in 2010.
Anaconda Co. and Cyprus Amax explored the Hall-Tonopah property between 1981 and 1991 and were preparing to mine the deposit when molybdenum prices fell. A single open pit was planned, concentrating on the Hall or lower moly mineralization zone. Now, said Robert Russell, Idaho General's board chairman, "Based on our current modeling and preliminary data, we believe that a mining rate of at least 20,000 tons per day can be sustained at grades of 0.09-percent to 0.11-percent molybdenum, or approximately 2 pounds molybdenum per ton mined." |
