Asian Metal News
Luanchuan Ruida Molybdenum, located in Henan and designed with 3.6 ktpy molybdenum concentrate capacity, suspend all operations on 7th April due to site rent disputes with the land owner. Ruida will remain under suspension until the dispute is resolved.
The original rental contract was from April 2008 to April 2020 at RMB220,000 per annum. The land owner has offered to renew the contract at RMB80 mln per annum when the contract terminated in April 2020. Luanchuan Ruida declined the renewal offer and claimed it unfair. Local authorities are working with both parties trying to resolve the dispute. Ruida mainly produces molybdenum concentrates for Longyu Molybdenum with an output of 200 t per month and processing fees of RMB65/t, inclusive of RMB13/t delivery costs.
Ruida is designed with dressing capacity of 5kt/day, capable of producing 200 t of molybdenum concentrate at 53% min grade per month.
Mainstream molybdenum concentrates (50% min grade) prices presently stand at RMB1,590~1,610/MTU by cash, down by RMB10/MTU from Monday.
