Higher molybdenum production and lower costs of producing Chile’s main export are increasing mining companies’ profits and tax payments.
The rise in metal prices boosted copper, gold, and silver, but also a lesser-known metal: molybdenum. Last year, the metal—extracted as a byproduct of copper—accounted for 1.92% of Chile’s exports, equivalent to US$ 2.057 millions, according to information from the Central Bank. This figure represents a 13% increase compared to 2024 shipments, when they reached US$ 1.813 millions.
Thus, molybdenum exports last year surpassed more well-known products such as lithium carbonate (with US$ 1.903 million exported in 2025) and wine (US$ 1.536 millions).
The metal is mainly used to manufacture stronger steels and also has applications in lubricants, chemicals, and electronics. The main export destinations for molybdenum oxide and concentrates are South Korea, Japan, and the Netherlands, according to the Central Bank.
According to the Chilean Copper Commission (Cochilco), between January 2026 and the same month the previous year, its price increased between 12.6% and 16.7%, depending on the quotation. In the case of the Platts Metals Week average price—corresponding to the weekly average of minimum and maximum quotations for molybdenum oxide, the benchmark most closely followed by producers, traders, and banks—the average in January 2026 was US$ 23.33 per pound.
“We are seeing a new super-cycle in mineral consumption, mainly driven by strong economic performance, but also by increased consumption from new industries associated with electrification, artificial intelligence, electromobility, and, in the specific case of molybdenum, alloys and new materials in general, which is advancing very rapidly worldwide,” says Juan Ignacio Guzmán, CEO of GEM Mining Consulting.
Along with higher prices, the country has also increased its production of the metal. In 2025, Chile produced 43,358 tons of molybdenum, a 12.7% increase compared to the previous year, when output totaled 38,486 tons.
The result was particularly influenced by increased production at Los Pelambres, owned by Antofagasta Minerals. At this operation, molybdenum output rose 50%, from 8,404 tons in 2024 to 12,505 tons last year. Meanwhile, Codelco reduced its molybdenum production by 6.1%, to 15,116 tons.
The Gain for Copper Mining Companies
Higher molybdenum exports have boosted copper mining because, as a byproduct, its higher price helps reduce the costs of producing copper. With copper prices at historic highs, this situation means that the gap between costs and sales prices becomes even wider.
“All mining products that are not copper but have commercial value—such as molybdenum, gold, and silver—constitute a credit in mining companies’ cost accounting. For example, if a company has a total cost of 100 but receives revenues of 1 from molybdenum and 0.5 from gold, its final cost will be 98.5, because byproduct revenues are deducted from total cost. This is the costing methodology used in the copper industry to reflect the reality that the mined material contains not only the main mineral, copper, but also other minerals. In this way, a higher price for molybdenum, gold, and silver results in lower costs,” explains Juan Carlos Guajardo, executive director of consulting firm Plusmining.
Along the same lines, Guzmán notes that “there are many mines in Chile that, while primarily copper mines, have significant molybdenum resources. When the price of molybdenum rises, extracting one ton of ore from the mine yields a quantity of molybdenum that is now worth more. This is generally taken as a credit against copper production, effectively lowering copper operating costs. In other words, you take the expenses—mine movement, plant processing, copper production in general—and subtract the molybdenum revenues from those costs, so that the effective cost of producing a pound or a ton of copper decreases. Therefore, when the price of molybdenum rises sharply, mines with significant molybdenum content see a substantial reduction in their cash costs.”
Indeed, this week Antofagasta Minerals reported a decrease in its costs, influenced by higher molybdenum production. “Net cash cost for the full year were US$ 1.19 per pound, representing a 27% year-on-year decrease, following an increase in gold and molybdenum byproduct production and stronger gold prices,” the company stated. In the case of Los Pelambres, net cash costs were US$ 0.82 per pound in 2025, a 35% decrease compared to the previous year.
Source: El Mercurio