Molybdenum in Jindui Town Seeks A New Breakthrough

The largest molybdenum production base located in Jindui town. The Jinduicheng Molybdenum Co., Ltd. (JDC) through a continuous increase in technological transformation and environmental protection investment has achieved green mine construction, ecological restoration, and comprehensive utilization, and facing with high-quality development, Jindui town is constantly accelerating research and development, stepping up structure adjustment and seeking a new breakthrough.

As a rare metal, molybdenum and its alloys are widely used in metallurgy, chemical industry, environmental protection, and aerospace. The development of its industry in Jindui town is about to start from 64 years ago. In 1955, a group of geological census team members crossed the ditch and found the leaking mine in the mountain. After collecting specimens, the team found the mine.

After more than 60 years of development, JDC currently owns the largest open mine, concentrator, and smelter in Asia. In terms of resource possession, the company has a reserve of about 1.4 million tons, accounting for 18% of the country, 8.8% of the world. It can also be mined for more than 60 years according to the current production scale.

Jindui town has focused its development on the green hills and further upgrading technology. Since 2005, it has invested more than 160 million yuan for ecological restoration and management and plans to continue investing more than 60 million yuan to continue ecological restoration and treatment of open pits, dumping sites and tailings pond areas.

China's molybdenum industry has experienced rapid development in the past forty years, basically completing the transformation from scratch, from primary products to deep processing products. Since the financial crisis in 2008, due to the squeeze of international market prices, China's industry concentration and marketization of primary products have further improved. In the past, there were only more than 20 mine enterprises in the country, and the concentration was greatly increased. However, subject to technological progress, China's mining and mining technology and industrial structure still need further adjustment and seeks for a new breakthrough.

Practitioners said that the current development of the industry mainly faces two major problems: on the one hand, the market discourse power and pricing power are insufficient; on the other hand, the industry has a low threshold and homogenization competition is fierce. As a leading company, JDC 's main business sector has suffered a long-term profit or loss in the past ten years, and only last year ushered in a new round of rising prices.

In this regard, seeking for a new breakthrough, relevant practitioners suggest that, we should continue to deepen the reform of state-owned enterprises in Jindui town, strengthen the leading position of the industry, integrate molybdenum resources and processing, promote the construction of state-level enterprise groups, and deepen the industrial structure. At the same time, adhering to market-oriented, increase product transformation and upgrading efforts, develop differentiated product strategies, and implement policies for new industries, new materials, and new technologies.

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