What were the ambitions behind the creation of New Moly LLC in 2021?

New Moly is a privately held company that wholly owns the Kitsault molybdenum project in British Columbia, Canada, and 80% of the Mt. Hope molybdenum project in Nevada. These projects are two of the largest and most advanced primary molybdenum projects outside of China. New Moly came into being in 2021 to combine the Kitsault and Mt. Hope properties, which previously were owned by Avanti Kitsault Mines Ltd. and General Moly Inc., respectively. New Moly has therefore consolidated the expertise of these two companies.

The firm is now 70% owned by Resource Capital Funds (RCF), a leading private equity firm. They were the driving force between bringing the two companies together to offer a pure moly exposure in the market. We are now looking for strategic partners to invest and advance at least one mine into production in the next four years.

Can you present New Moly’s portfolio?

Mt. Hope is the largest permitted primary molybdenum project in the world. When operational, the Mt. Hope open-pit mine will use one hydraulic and two electric shovels, and a fleet of 240-t mining trucks. The molybdenum market globally is approximately 600 million lb/y, so Mt. Hope could represent 5% of the global supply with 35 million lb/y. It’s a significant asset, with more than a billion lb of molybdenum and a mine life of more than 40 years. M3 Engineering and Independent Mining Consultants (IMC) updated the project feasibility study in 2022, and following receipt of financing, Mt. Hope can be in production within three years. Regulatory authorities in Nevada are very supportive. Nevada remains a leader in progressive and supportive mining practices. The Kitsault mine project also has strong support. Key strengths of the project include a 16-year mine life, high ore-grade, well-advanced detailed engineering, and four of five key permits in place.

What is unique about the Mt. Hope assets?

About 75% of molybdenum comes from copper byproducts; there are only two primary molybdenum mines outside of China today: Freeport McMorran’s Climax and Henderson mines, so Mt. Hope would offer the world a new source of the metal not controlled by China.

The metal is important for its high temperature and corrosion-resistant properties. It has many applications downstream in terms of specialty metal uses for semiconductors, defense, aerospace, medical, and other critical industries—it is also important in the transition towards a green economy. Last year, the molybdenum market moved into deficit, and the price increased to a 14-year high. As of early January 2023, the price was more than US$32/lb. Market analysts forecast these robust prices to continue.

What is needed from a regulatory standpoint to accelerate development projects?

President Biden recently provided a US$2.8 trillion stimulus to incentivize new projects to provide critical minerals. It’s fine to provide economic help, but regulatory and legislative mechanisms are needed that allow responsible mining projects that will uphold a commitment to environmental management and sustainable development practices to advance. We will work with the NVMA, communities, and industry players to address any residual concerns, however, a legislative fix may be required to create more certainty once projects have met the standards required by the agencies. We need to strike the right balance. If projects meet regulatory standards, they should go ahead—it is the security of mineral supply that is at risk here.

How important is molybdenum to a successful “green transition”?

According to Canada’s 2021 Critical Mineral List, it is essential to Canada’s economic security and transition to a low-carbon economy. The top applications of molybdenum for renewal energy are wind turbines and geothermal power. A typical wind turbine requires about 130 kg of molybdenum per megawatt of installed capacity. Geothermal generation of electricity requires very high-quality steel containing molybdenum.

What is New Moly’s strategy to attract funds and find partners in the coming months?

Over the next 3-6 months, we will dialogue with potential investors who are interested in taking a strategic interest in either Mt. Hope or Kitsault or securing offtake agreements. We are also looking at M&A activity, any value acquisition, and medium-term producing copper-molybdenum assets that would complement our portfolio.