MOLYMET S EXPERIENCE IN CHINA

Transcription

1 MOLYMET S EXPERIENCE IN CHINA 1.Molymet 2.General Assessment of the Molybdenum Industry 3.Molymet s Operations in China 4.Main Challenges for International Companies EXPOMIN, April 2012

2 MOLYMET S EXPERIENCE IN CHINA 1.Molymet 2.General Assessment of the Molybdenum Industry 3.Molymet s Operations in China 4.Main Challenges for International Companies

3 Santiago CHILE

4 1.Molymet Company s background Molymet is a Chilean corporation registered in the Santiago Stock Exchange, and was originated in 1976 from the division of Carburo y Metalurgia S.A., which was founded in 1936, by Antonio Gianoli and George Mustakis in Valparaiso, Chile, to produce calcium carbide and ferroalloys.

5 1.Molymet Growth and Investment Production Capacity Average Annual Growth= 10,2 % 5

6 1.Molymet Molymet Capacity vs. World Consumption 6

7 1.Molymet Total Investment (MM US$) X = 64 7

8 1.Molymet Affiliates and Subsidiaries 8

9 Molymet Santiago Site 9

10 MOLYMEX MOLYMETNOS MOLYNOR

11 SADACI CHEMIEMETALL LUOYANG HIGH-TECH

12 MOLYMET S EXPERIENCE IN CHINA 1.Molymet 2.General Assessment of the Molybdenum Industry 3.Molymet s Operations in China 4.Main Challenges for International Companies

13 MOLYBDENUM: Production and Consumption MINING OF ORE CRUSHING GRINDING MINE FLOTATION MOLYBDENITE MoS2 LEACHING ROASTING TECHNICAL OXIDE MoO3 MOLYMET SMELTING FeMo BRIQUETTES TECHNICAL OXIDE MoO3 POWDER TECHNICAL OXIDE MoO3 END CUSTOMER STEEL PRODUCTION END CUSTOMER STEEL PRODUCTION CHEMICAL PROCESSING CUSTOMERS Mo Metal products PURE PRODUCTS CHEMICALS FOR CATALYSTS AND OTHER USES Alloys Super alloys METAL POWDER

14 2. General Assessment of the Mo Industry 2011 (E) Consumption of Mo by Industry 2011(E) Mo Consumption by Applications Stainless Steel 20% ATS/HSS 10% Cast Iron 7% TOTAL 245,000 Tons Mo Constructional Eng. Steel 40% Chemicals 13% Super Alloys 4% Mo-Metal 6%

15 2. General Assessment of the Mo Industry Global Molybdenum Mine Production Source: CPM Group

16 2. General Assessment of the Mo Industry Molybdenum Production by Country Canada 4% Mexico 4% Peru 8% Chile 15% Others 7% China 35% China expected to remain World s Largest Molybdenum Producer USA 27% Source: CPM Group

17 2. General Assessment of the Mo Industry Molybdenum Demand by Region and Per Capita Developed Markets Still Account for over 50% of Mo Demand CIS 6% Other 14% Europe 24% China 31% Japan 12% USA 13% Source: CPM Group

18 ene-92 jul-92 ene-93 jul-93 ene-94 jul-94 ene-95 jul-95 ene-96 jul-96 ene-97 jul-97 ene-98 jul-98 ene-99 jul-99 ene-00 jul-00 ene-01 jul-01 ene-02 jul-02 ene-03 jul-03 ene-04 jul-04 ene-05 jul-05 ene-06 jul-06 ene-07 jul-07 ene-08 jul-08 ene-09 jul-09 ene-10 jul-10 ene-11 jul-11 ene General Assessment of the Mo Industry Molybdenum Prices 20 years 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0,000 Source: IMOA

19 2. General Assessment of the Mo Industry 2011 Molybdenum Price Trends

20 2. General Assessment of the Mo Industry Molybdenum and Oil Prices Energy Industry Remains a Major Driver for Mo Demand Growth Source: CPM Group

21 Consumption Production 2. General Assessment of the Mo Industry Western Market 500 Molybdenum (MM lb Mo) e 2013e Initial Stock Mines Spent Catalyst Imports Consumption Exports

22 Consumption Production 2. General Assessment of the Mo Industry Chinese Market Molybdenum (MM lb Mo) e 2013e Initial Stock Mines Spent Catalyst Imports Consumption Exports

23 Consumption Production 2. General Assessment of the Mo Industry World Market

24 MOLYMET S EXPERIENCE IN CHINA 1.Molymet 2.General Assessment of the Molybdenum Industry 3.Molymet s Operations in China 4.Main Challenges for International Companies

25 3. Molymet s Operations in China Luoyang High-Tech Metals Co. Ltd.

26 3. Molymet s Operations in China Luoyang High-Tech Metals Co. Ltd. JV (50/50) with China Molybdenum Inc., Luoyang, Henan

27 3. Molymet s Operations in China Luoyang High-Tech Metals Co. Ltd.

28 3. Molymet s Operations in China Luoyang High-Tech Metals Co. Ltd. Founded in March, 2010

29 3. Molymet s Operations in China Molymet Beijing Trading Co. Ltd. Commercial and Trading Company, founded as Rep. Office in 2008

30 MOLYMET S EXPERIENCE IN CHINA 1.Molymet 2.General Assessment of the Molybdenum Industry 3.Molymet s Operations in China 4.Main Challenges for International Companies

31 4. Main Challenges for Foreign Companies Different kinds of international entrepreneurial initiatives Different challenges for different locations Knowledge and culture on Chinese markets and business customs Expatriates Previous experience in international business Partners Developing bonding and consolidating confidence, friendship and

32 THANKS FOR YOUR ATTENTION. ANY COMMENTS?