VSMPO-Avisma bought molybdenum

VSMPO-Avisma bought 33% of the shares of the Mining Company “Ural Gold”, earlier owned by Ural Mining and Metallurgical Company. The company has a license for the development of the Shameisky molybdenum ore deposit with 79.2mt of molybdenum ore (52,900 tonnes - Mo content). In the future, the corporation is planning to increase its stake in Ural Gold to 50%. VSMPO-Avisma needs more molybdenum, as it increased the output of titanium forgings for aircraft manufacturing. Avisma’s current annual need of Mo alloys makes 500-600 tonnes which now can be entirely satisfied by the new asset.
Besides, apart from using Mo products for its own needs, Avisma can start exporting FeMo to Europe and improve its positions in the global noble alloys market, according to Metal Expert’s estimates. Today, VSMPO-Avisma is already one of the leading FeTi exporters to Europe.
The situation is favoured by strong demand for molybdenum-containing products at European special steel producing companies against the background of reduction of Chinese FeMo and molybdenum oxide supplies to Europe. According to preliminary data, Chinese government is going to reduce quota for Mo product export from 33,600 tonnes in 2007 to 26,300 tonnes in 2008 (34,700 tonnes of Mo products were exported in 2006).

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