Glencore will acquire the balance 56.25% stake in the Mara Project from Pan American to become the project’s sole owner.

The Mara project is located in Argentina and has a published 2022 technical report showing the potential production of 650ktpy copper-in-concentrate and 10.2ktpy molybdenum-in-concentrate. Commissioning is planned for 2026. Under the terms of the agreement, Glencore will pay US$475M upon closing, with Pan American retaining a copper net smelter return royalty of 0.75%.

According to the press release, Mara has the potential to be a top-25 copper producer globally. Molybdenum supply has piggybacked on the growth of South American copper output, with Chile and Peru now accounting for around 30% of global molybdenum production. More recently, disruptions to supply in Peru and Chile have illustrated the reliance of the molybdenum market balance on the copper industry.

According to Project Blue data, primary molybdenum mines have the potential to regain market share, with the largest molybdenum mine to be commissioned in China later this decade. However, new copper projects in South America could help satisfy growing molybdenum demand. As a result, South America’s copper industry, including the approach of several end-of-life open pits by the mid-2030s, will be a key theme in the outlook for molybdenum.