It is reported that molybdenum producer Thompson Creek Metals Co Inc is assessing several acquisition opportunities, including targets in South America.

Mr Kevin Loughrey CEO of Thompson Creek Metals said that "We're looking in South America, and we'd look in Australia. We are working very hard. We've identified targets, we're looking at a wide array of acquisition candidates and we're optimistic that we'll do one."

Mr Loughrey has said previously that Thompson Creek would like to diversify into different commodities. He said this is still the case, although he wouldn't specify what the company was looking at.

Although the majority of its sales are to companies in North America, Thompson Creek is increasingly turning its focus to the rapidly growing markets of China and India as a source of demand for moly, which is used to produce alloyed steel and high end stainless steel for the construction, hydrocarbon and automotive industries.

He added that "We're obviously focusing on China and India because they represent quite a growing market and fertile fields for the production of steels containing moly that have not been there before. In China you've got the possibility of totally new markets where there's been no moly development before. So we are attending to our existing customer base and also looking to expand our markets in those markets where growth looks very likely."

Mr Loughrey said overall demand for the metal has been gently moving upwards across industry sectors and geographic areas, as steel production increases to meet the demands of the improving global economy and government spending on infrastructure. He added that "We're selling a higher level of our material on an annual contract, which reflects greater confidence on the part of our buyers, and the supply demand dynamic right now appears to be favorable, unlike some of the other metals."

(Sourced from www.canadianbusiness.com)