China, which produced 45% of the world’s molybdenum in 2023, has imposed export restrictions on certain molybdenum products. This move is expected to increase reliance on producers in the Americas, including EV Resources’ Parag copper-molybdenum project in Peru, where the company holds a 70% interest.
Parag has completed 83 drill holes, with intersections confirming consistently high molybdenum grades. One of the most significant results includes an intersection of 89.4 metres at 0.62% molybdenum in drill hole VIE-03. Molybdenum, a by-product of copper at Parag, is primarily used to strengthen steel alloys and is also found in lubricants, pigments, and petroleum catalysts.
Molybdenum prices have remained strong, trading at US$20.75 per pound on 7 February 2025, nearly five times the price of copper. With many molybdenum mines ageing and grades declining, supply concerns have increased, making new sources of production more valuable.
EV Resources has received interest from molybdenum roasters in the USA and Latin America for potential supply from Parag. Managing Director Hugh Callaghan stated, “Parag has remarkable by-product molybdenum grades higher than most primary molybdenum mines and projects, which offers a compelling economic support to the economics of this copper project.”
