TORONTO (miningweekly.com) – Molybdenum-miner Thompson Creek Metals will reduce its 2009 production from its previous guidance, and plans to shut both its mines for a full month during the summer, the firm said on Monday, citing unfavorable market conditions and reduced demand for molybdenum.

Thompson Creek is still finalising where the production cuts will take effect, but expects to produce between 20-million and 24-million pounds of molybdenum this year, compared with a December forecast of 31,5-million to 34-million pounds.

On December 5, the company announced that it would halt the expansion of its 75%-owned Endako mine, in British Columbia, and chopped its capital expenditure guidance from $300-million to only $69-million for this year.

The announcement was just a month after Thompson Creek, which also mines molybdenum from the Thompson Creek mine, in Idaho, said that it would postpone the development of its C$109-million Davidson underground mine in Canada.

Molybdenum, which traded on the spot market above $30/lb during the first half of last year, fell off sharply in October, and has dropped to below $10/lb, as global demand for steel feels the effects of recessionary concerns.

The company will implement a temporary shutdown in mining activity for about a month during the summer at both mines, president and CEO Kevin Loughery said on Tuesday.

“There will be other production changes about which we will provide details at a later date after they are decided,” Loughery added.

“The company intends to remain flexible and adjust production as needed in response to changing market conditions.”

Freeport-McMoRan Copper & Gold has already said that it will reduce underground mine production at its Henderson operation by 25%, curtail the molybdenum circuit at the Cerro Verde mine, in Peru, and defer the restart of the Climax molybdenum mine.

Molybdenum is used to strengthen high-end stainless steel, in steel pipes and drills, and other extreme high- or low-temperature applications, as well as to prevent corrosion.

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