General Moly Inc GMOLQ

General Moly gives POSCO rights to buy ....

[jackdaw]

POSCO Secures Stable Supply of Molybdenum By Jane Han Staff Reporter Korean steel giant POSCO said Tuesday that it has signed a deal with a major U.S. mineral developer to explore a central Nevada mine, considered to have one of the world's largest deposits of molybdenum, a key raw material for high-end steel products. The world's fourth-biggest steel group said it invested a total of $170 million through the company's Canadian branch POSCAN and POSCO subsidiary Samjung P&A, giving them an ownership of 20 percent stake in the project. The deal with Colorado-based General Moly gives POSCO rights to buy 20 percent of the molybdenum produced from the mine. This is expected to help POSCO stave off shortage concerns, as the global demand for the metallic element has been on a steady rise, squeezing steel producers to secure stable supplies. The project is expected to produce 15,000 tons of molybdenum annually beginning 2010, of which POSCO will take about 3,000 tons. Among them is ArcelorMittal, the world's largest steel maker, which in November agreed to buy 12.6 percent stake in General Moly to receive 6,500 tons of molybdenum annually for five years. [e-mail]