The plant is expected to produce up to 2.5kt of molybdenum in 2024.

Teck Resources Limited’s (Teck’s) Quebrada Blanca (QB) Mine is a large, open-pit copper–molybdenum mine in the Tarapacá region of northern Chile. The expansion of the original mine, referred to as QB2, represents the next phase of the original QB operation following the completion of the QB2 project. The QB2 operation produces copper concentrate as a primary product and molybdenum concentrate as a byproduct. The operation will have an initial mine life of 27 years with the potential for future expansion.

In March 2023, the first copper concentrate was produced from the QB2 expansion; however, molybdenum production was delayed due to the completion of the molybdenum plant. Over the span of six months, the construction of the molybdenum plant was completed (Q4 2023) and subsequently commissioned (Q2 2024). As a result, the first molybdenum concentrate was produced and sold in Q2 2024. The plant is currently in a ramp-up phase and is expected to produce between 1.8-2.5kt Mo-in-concentrate in H2 2024. Looking ahead, the QB Mine is expected to produce between 5-8ktpy Mo-in-concentrate between 2025 and 2027.

The commissioning of Teck’s QB molybdenum plant is an important milestone for the company. The QB operation could become Teck’s largest molybdenum-producing asset over the next five years and, as a result, will generate significant revenue for the company. While the operation may become the company’s largest molybdenum-producing asset, the additional molybdenum concentrate will be more critical for Chile’s molybdenum supply chain.

Since 2020, molybdenum production in Chile has been declining steadily, falling from 59kt to 40kt from 2020 to 2023, respectively. The decrease in molybdenum production was largely due to declining copper grades at Chile’s ageing copper mines. Project Blue estimates that Chile’s molybdenum production will increase slightly in 2024, with output estimated to reach approximately 42kt. New sources of molybdenum concentrate will undoubtedly assist in the stabilisation and improvement of Chilean molybdenum production over the next five years.

As molybdenum demand continues to rise, expansion projects at existing copper mines will be required to maintain capacity and keep pace with demand over the short term. However, over the medium-to-long-term energy transition horizon, fast-tracking and prioritising the development of greenfield porphyry projects will be crucial in determining whether long-term molybdenum demand will be met. Project Blue’s forecast suggests that approximately five greenfield copper–molybdenum projects with capacities of more than 5ktpy of molybdenum will need to be commissioned over the next 10 years to keep pace with molybdenum demand. If unsuccessful, the molybdenum market could be at risk of the market deficit increasing significantly towards the end of the 2030s.