Molybdenum

Nigeria is blessed with abundant mineral resources and most of these remain untapped. The country is so blessed with solid minerals and in large quantities too. Due to presence of oil in the country as well the government has not devoted enough time to the solid mineral sector although it has started by declaring its intension to support investors in this sector. This it has done by streamlining the process of acquisition of mining title and setting aside solid mineral support fund for investors in the sector. One of such mineral that Nigeria has in abundance is molybdenium.

Molybdenum is a chemical element with symbol Mo and atomic number 42. The name is from Neo-Latin molybdaenum, meaning lead, since its ores were confused with lead ores. Molybdenum does not occur naturally as a free metal on Earth; it is found only in various oxidation states in minerals. The free element, a silvery metal with a gray cast, has the sixth-highest melting point of any element. It readily forms hard, stable carbides in alloys, and for this reason most of world production of the element (about 80%) is used in steel alloys, including high-strength alloys and super-alloys.

Molybdenum (often referred to as ‘Moly’) is valued as an alloying agent in structural and stainless steels because of its strength, corrosion resistance and ability to hold shape and operate at high temperatures. Molybdenum is the 54th most abundant element in the Earth’s crust and the 25th most abundant element in its oceans, with an average of 10 parts per billion; it is the 42nd most abundant element in the Universe. The Russian Luna 24 mission discovered a molybdenum-bearing grain (1 × 0.6 µm) in a pyroxene fragment taken from Mare Crisium on the Moon. The comparative rarity of molybdenum in the Earth’s crust is offset by its concentration in a number of water-insoluble ores, often combined with sulfur in the same way as copper, with which it is often found. Though molybdenum is found in such minerals as wulfenite (PbMoO₄) and powellite (CaMoO₄), the main commercial source is molybdenite (MoS₂). Molybdenum is mined as a principal ore and is also recovered as a byproduct of copper and tungsten mining.

Characteristics

Like other refractory metals, molybdenum has a high density and melting point and is resistant to heat and wear. At 2,623 °C (4,753 °F), molybdenum has one of the highest melting points of all metal elements, while its coefficient of thermal expansion is one of the lowest of all engineering materials. Moly also has a low toxicity. In steel, molybdenum reduces brittleness as well as enhances strength, hardenability, weldability and corrosion resistance.

Production

Molybdenum is most often produced as a by- or co-product of copper, but a few mines do produce moly as a primary product. Primary production of molybdenum is exclusively extracted from molybdenite, a sulfide ore, which has a molybdenum content of between 0.01 and 0.25%. Molybdenum metal is produced from molybdic oxide or ammonium molybdate through a process of hydrogen reduction. But, in order to extract these intermediary products from molybdenite ore, it must first be crushed and floated to separate copper sulfide from the molybdenite.

The resulting molybdenum sulfide (MoS2) is then roasted at between 500-600 C° (932-1112 F°) to produce roasted molybdenite concentrate (MoO3, also referred to as technical molybdenum concentrate). Roasted molybdenum concentrate contains a minimum of 57% molybdenum (and less than 0.1% sulfur). Sublimation of the concentrate leads to molybdic oxide (MoO3), which, through a two-step hydrogen reduction process, produces molybdenum metal.

In the first step, MoO3 is reduced to molybdenum dioxide (MoO2). Molybdenum dioxide is then pushed through hydrogen flowing tube or rotary furnaces at 1000-1100 C° (1832-2012 F°) to produce a metal powder.

Molybdenum produced as a by-product of copper from copper porphyry deposits, like the Bingham Canyon deposit in Utah, is removed as molybdenum disulfate during flotation of the powder copper ore.  The concentrate is roasted to make molybdic oxide, which can be put through the same sublimation process to produce molybdenum metal.

According to USGS statistics, total global production was roughly 270,000 tonnes in 2015. The largest producing countries were China (93,000MT), the US (47,800MT), Chile (34,900MT) and Peru (12,300MT). The largest molybdenum producers are Molymet (Chile), Freeport McMoran, Codelco, Southern Copper and Jinduicheng Molybdenum Group.

 

Applications

More than half of all molybdenum produced ends up as an alloying agent in various structural and stainless steels. The International Molybdenum Association estimates that structural steels account for 35% of all moly demand. Molybdenum is used as an additive in structural steels because of its corrosion resistance, strength, and durability. Being particularly useful in protecting metals against chloridic corrosion, such steels are used in a wide range of marine environment applications (e.g. offshore oil rigs), as well as oil and gas pipelines.

Stainless steels account for another 25% of molybdenum demand, which values the metal’s ability to strengthen and inhibit corrosion. Among many other uses, stainless steels are used in pharmaceutical, chemical and pulp and paper mills, tanker trucks, ocean tankers and desalination plants.

High-speed steels and super-alloys use moly to strengthen, increase hardness and resistance to wear and deformation at high temperatures. High-speed steels are used to form drill and cutting tools, whereas super-alloys are used in the production of jet engines, turbo chargers, power generation turbines and in chemical and petroleum plants.

A small percentage of moly is used to increase the strength, hardness, temperature and pressure tolerance of cast iron and steels, which are used in automobile engines (more specifically to make cylinder heads, motor blocks, and exhaust manifolds). These allow engines to run hotter and, thereby, reduce emissions.

High purity molybdenum metal is used in a range of applications from powder coatings to solar cells and flat panel display coating. About 10-15% of molybdenum extracted does not end-up in metal products but is used in chemicals, most often in catalysts for petroleum refineries.

Alloys

According to USGS statistics about 86% of molybdenum produced is used in metallurgy, with the rest used in chemical applications. The estimated global use is structural steel 35%, stainless steel 25%, chemicals 14%, tool & high-speed steels 9%, cast iron 6%, molybdenum elemental metal 6%, and super-alloys 5%. Molybdenum can withstand extreme temperatures without significantly expanding or softening, making it useful in environments of intense heat, including military armor, aircraft parts, electrical contacts, industrial motors, and filaments

 

Other applications as a pure element

• Molybdenum powder is used as a fertilizer for some plants, such as cauliflower
• Elemental molybdenum is used in NO, NO₂, NO_xanalyzers in power plants for pollution controls. At 350 °C (662 °F), the element acts as a catalyst for NO₂/NO_x to form NO molecules for detection by infrared light.
• Molybdenum anodes replace tungsten in certain low voltage X-ray sources for specialized uses such as mammography
• The radioactive isotope molybdenum-99is used to generate technetium-99m, used for medical imaging

 

REFINING

This facility do not exist in the Nigeria presently thus it presents a fantastic investment opportunity for a savvy investor to take advantage of, such investor will refine the molybdenite ore and then sell molybdenum concentrate to local and international buyers. This fetches more return on investment even though the investment is huge
MARKET

Export of crude molybdenite ore is good business but refining to obtain pure molybdenum ready to be used is better although it requires enormous investment so also is the return on investment. Global molybdenum consumption is steadily increasing, and currently stands at some 74000 metric tons 2017 report. Forecasts for global molybdenum demand show the same trend. The leading refined molybdenum consuming countries are China, the United States, Japan and Germany. Demand for molybdenum worldwide is expected to grow largely because of increased consumption in China, which is being driven by growth in the stainless steel and other related businesses

REQUIREMENT AND CONDITIONS FOR MINING IN NIGERIA

There are two options available to a company or an individual to enter into the mining industry in Nigeria.

1. Through the acquisition of an existing mining Lease from the original owner. Approval must be obtained from the Ministry of Solid Minerals Development for such a purchase.
2. Fresh mining lease

 

Procedure for Mineral Title Licences/Leases and Permits:

Duly completed application form

Coordinates of the area of application

Certificate of incorporation

Attestation

Letter of consent from landowner(s)/occupier(s)

Types of minerals

Work programme/pre-feasibility report

Evidence of payment

Technical capability

Financial capability

In order to encourage investment in the solid minerals industry in Nigeria, Government is offering the following incentives

1. 3-5 years Tax Holiday
2. Deferred royalty payments
3. Possible capitalization of expenditure on exploration and surveys
4. Extension of infrastructure such as roads and electricity to mining sites, and provision of 100% foreign ownership of mining concerns.

The mining industry in Nigeria is regulated by the Nigerian Minerals and Mining Act of 2007, National Minerals and Metals Policy 2008 and Nigerian Minerals and Mining Regulations 2011.

 

CONCLUSION

Business Advisory Network ‘BAN’ will work with you and assist you to process mining lease from the federal government. We will help you source for a site with rich mineral content. Mining is a technical field although the financial reward is enormous; therefore to succeed you need experts to guide you to avoid fatal mistakes that will erode your capital.

Other things BAN can do for you include but are not limited to helping you to determine the grade of molybdenite ore at the site, source market for your mined minerals, both locally and internationally. BAN will also help you arrange security at your mining sites. It will interest you to know that export of refined pure molybdenium is where you will make a kill. BAN will help you to set up a refinery for molybdenite ore in Nigeria. The capital outlay for this is huge but even so much more is the return on investment.