Japan Major Steels to Secure Mo Oxide from CODELCO

Japan Bank for International Cooperation (JBIC) singed an import loan agreement with

Corporacion Nacional del Cobre de Chile (CODELCO) for up to US$ 224 million loan. The loan is cofinanced with Bank of Tokyo-Mitsubishi UFJ. They provide total US$ 320 million for CODELCO’s new molybdenum refinery based on stable supply for Japan. Japanese 9 steel companies including JFE Steel and Nippon Steel signed long term purchase agreement for molybdenum oxide each with CODELCO. The steel makers expect the new molybdenum capacity contributes to world stable supply.

The nine steel companies include Sumitomo Metal Industries, Kobe Steel, Nisshin Steel, Nippon Steel & Sumikin Stainless Steel (NSSC), Nippon Yakin Kogyo, Daido Steel and Hitachi Metals. They didn’t disclose the detail of the purchase agreement but they apparently secure longer term including 10 years contract from CODELCO.

World largest copper producer of CODELCO is one of leading molybdenum producers. The firm represented 45% of Japanese molybdenum import in 2011. CODELCO, however, has limited capacity when the firm uses toll refining of other company.

Ministry of Economy, Trade and Industry launched Japan molybdenum working group with Japanese steel makers in December 2004 when molybdenum market price surged. METI sent joint mission with the steel makers to Chile seeking capacity expansion of CODELCO.