China Molybdenum seeks opportunities to beef up battery metals business

The meltdown at the Fukushima Daiichi nuclear plant last March had uranium investors fleeing for the exits. While the nuclear fuel used to make yellowcake had enjoyed something of a renaissance (after tanking in 2008-09 due to the financial crisis) in the runup to the earthquake and tsunami that rocked Japan, all that changed in the aftermath of the quake.

On the last day of Roundup, Vancouver's mining showcase, Sandy Chim CEO of Canada's Century Iron Mines, flashed a few slides about China, India and the iron ore market that would make gold bugs green with envy.

With revenues of $60 billion last year and operations at the ends of the earth, few companies are in a better position to take the pulse of the global economy and the resource sector than Caterpillar. But what is it saying about the outlook for 2012?

Zinc may be the black sheep of base metals this year amid expectations that increases in mining capacity will pressure prices. However, the outlook could brighten should some of those expansion plans be put on hold because of weak demand and problems getting project financing. Longer term, analysts expect prices may rise as mines close, shrinking supply.

Reuters reports that Toyota has developed a technology to substitute rare earths used in its hybrid vehicles. The company, which has a strong lead in environmentally friendlier car sales around the world said it would be able to bring the technology to market within two years if REE prices don't fall.

The share price performance of those non-Chinese rare earth miners closest to production – Molycorp in the US, Australia's Lynas and Great Western Minerals in South Africa – is in stark contrast to what is happening to rare earth oxide prices, some of which have more than halved over the last three months.

Perceiving a cloudy future for world markets, Ivanhoe Mines (NYSE:IVN) announced that they had negotiated an additional US$1.8 billion bridge financing for Oyu Tolgoi.

The market for iron ore is likely to soften this year but industry leaders Rio Tinto and BHP Billiton are not pulling in production, betting that the slowdown in steelmaking is temporary.

The country hopes the new platform will help strengthen its pricing power and wrest control from Vale, BHP Billiton and Rio Tinto, which between them control three quarters of global seaborne ore supplies.