Nov. 15 （Bloomberg） -- China Molybdenum Co., the nation’s second-biggest producer, agreed to buy exploration rights for a mine in Xinjiang province for 1.04 billion yuan （$157 million）.
The rights will be transferred from the company’s No. 2 Geological Institution unit, according to a statement to the Hong Kong exchange. The company can explore an area of 16.77 square kilometers （4,144 acres） around a mine in East Gobi, Hami, the Luoyang, Henan province-based company said.
China last month kept next year’s export quota unchanged for molybdenum, which is used to toughen steel in alloys. The government may set up strategic reserves for 10 metals including molybdenum, a report by the Ministry of Land and Resources’ newspaper said today.
The estimated resource at the molybdenum mine in Xinjiang is 350 million metric tons of ore, with 396,100 tons of metal content, according to the statement. China Molybdenum has formed a joint venture to develop the mine.
China Molybdenum fell 2.7 percent to HK$7.30 at 3:53 p.m. in Hong Kong. The stock has gained 17 percent this year.
--Xiao Yu. Editors: Alan Soughley, Andrew Hobbs
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