SOUTH KOREA - NMC increases production at Moland

A 20% ramp-up of molybdenum production at NMC Resources’ Moland mine in South Korea has been successfully implemented, with the company exceeding its target by almost 50%. Daily throughput reached 1109 tonnes of ore during the second quarter of 2012, a 27% increase compared to 876 tonnes for the same period in 2011. During this same period, the company produced 199 tonnes of molybdenum concentrate, a 15% increase on the corresponding 2011 quarter.

Last year NMC expanded the resource at Moland and has planned a 3000 metre diamond drill program for infill drilling and testing the westward, northward and downward extensions of the deposit.

During the second half of 2012, NMC intends to invest about $500,000 in crushing facilities at Moland to increase processing throughput by 15-20%. This investment will be sponsored by a South Korean government agency.

The Moland mine is about 170km southeast from the capital Seoul and has been in commercial production since April 2010. The mine’s crushing chamber is located underground and 100% of the water used in production is recycled. All tailings are used as cement making material.

NMC’s president Do Hyung Kim says the continual improvements to the company’s molybdenum production profile are pleasing. “We are on track to achieving enhanced sales revenue on 2011’s US$12 million.”

Moland started commercial production in April 2010 and has been operating with a positive operating cashflow since. As a sole producer of high grade molybdenum in South Korea, NMC is also examining a number of marketing and production strategies to further enhance the mine’s economics.

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