Chile molybdenum processing project set to get permit

Chilean molybdenum and rhenium processor Molymet is poised to secure approval of an environmental impact assessment (EIA) for the expansion of its Molynor plant in Mejillones, in northern Antofagasta region (II).

Planned investment in the initiative is US$240mn.

Regional environmental evaluation service (SEA) officers have recommended it be approved, and a meeting will be held on Tuesday to vote on it, according to SEA documents.

The project, submitted in November last year, aims to double capacity to just over 100,000t of molybdenum oxide a year. It entails installing two additional roasters, as well as a new gas treatment plant, a new sulfuric acid plant and a new molybdenum ore processing facility. The project also involves expanding the existing desalination plant by doubling its treatment capacity to 40,800m3/month. However, the company noted that the project does not involve a request to increase its seawater extraction and brine expulsion quota, as it is currently authorized to extract 120,000m3/month.

Molymet is one of the world's largest molybdenum and rhenium processors, with 35% and 70% market shares, respectively.