china will limit molybdenum mining

From The Canadian Press, October 29, 2010 - 5:50 p.m.
Thompson Creek shares surge after report says China will limit molybdenum mining

By The Canadian Press


TORONTO - Shares in molybdenum producer Thompson Creek Metals Co. Inc. (TSX:TCM) surged more than 12 per cent following a report that China will limit mining of the specialty metal beginning next year.

Thompson Creek's stock added $1.32 or 12.04 per cent to $12.28 Friday on the Toronto Stock Exchange after earlier rising as high as $12.73.

The jump came after the China Securities Journal reported that the country is planning to classify molybdenum ? a specialty metal widely used in alloys of steel, iron and other metals ? as a national resource so it can limit production of the commodity.

"It would have an impact on world supply, which would hopefully drive prices," said Thompson Creek spokeswoman Pamela Solly.

Thompson Creek recently completed a $650-million acquisition of Terrane Metals Corp., a junior miner with copper and gold assets.

Terrane's key asset is the Mount Milligan copper-gold project in central British Columbia, near Thompson Creek's Endako mine.

Thompson Creek is one of the world's biggest producers of molybdenum. Its producing assets include the Thompson Creek mine in Idaho, 75 per cent of Endako in northern B.C., and a metallurgical plant in Pennsylvania.


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