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Moly Mines enters strategic alliance with China Development Bank

Moly Mines (ASX/TSX: MOL) has closed a strategic alliance with China Development Bank Corporation (CDB) for the financing of new projects identified by Moly Mines.

Meanwhile, the company's Spinifex Ridge Molybdenum / Copper Project is to be put on hold due to low global molybdenum prices as well the high Australian dollar which have rendered the project sub-economic.

Under the strategic alliance, CDB will provided financial support (including loans) for projects on terms with a similar commercial effect to CDB as those set out in the existing US$454 million Syndicated Facility Agreement (SFA) for the Spinifex Ridge Molybdenum / Copper Project.

Iron ore shipments tracking higher

In December, Moly Mines shipped the 1,000,000th tonne of iron ore fines from the Spinifex Ridge Iron Ore Mine. The milestone has occurred within 12 months of the mine’s first shipment on 30 December 2010.

December’s shipment of 91,000 tonnes is the 4th shipment for the December 2011 quarter and sets a quarterly record for tonnes shipped from Spinifex Ridge of 348,000 tonnes.

Over the calendar year mining and crushing operations have exceeded budget by 25%, from single shift day operations. Production for 2012 is expected to reach 1.2 million tonnes.