SMM Price Outlook for Base Metals on SHFE (May 9, 2017)

Kobrea Exploration Corp. announced the approval of a US$4 million 2026/27 exploration programme for the Western Malargüe Mining District in Mendoza Province, Argentina, fully funded by BHP. The programme includes diamond drilling at the El Destino copper-gold-molybdenum porphyry target, induced-polarisation surveys at El Destino and KBX-17, as well as geological mapping, geochemical sampling and hyperspectral work. The exploration alliance covers seven projects totaling approximately 733 square kilometres, where copper, gold and molybdenum geochemical anomalies have been identified. SMM analysis: approval of the new budget moves the BHP-Kobrea partnership from an alliance framework into an active drilling phase. However, the properties remain at an early exploration stage, with no molybden

Glencore plans to submit the environmental impact report for its El Pachón copper-molybdenum project in Argentina in Q1 2027 and aims to secure approval under the Incentive Regime for Large Investments, or RIGI, before July 2027. Glencore previously reported approximately 6 billion tonnes of mineral resources grading an average 0.43% copper, 2.2 g/t silver and 130 g/t molybdenum, equivalent to around 0.013% Mo. Based on the disclosed tonnage and average grade, the resource contains roughly 780,000 tonnes of in-situ molybdenum, although this does not represent reserves, recoverable metal or future production. During the 2025/26 exploration season, the project completed 53 drill holes totaling 21,246 metres and advanced preliminary road and bridge infrastructure.

Glencore announced that its Agua Rica project, known as MARA, has received approval under Argentina’s Incentive Regime for Large Investments, or RIGI. The large-scale copper-gold-silver-molybdenum deposit contains approximately 1.2 billion tonnes of measured and indicated mineral resources grading an average 0.03% molybdenum. Based on the disclosed tonnage and grade, the resource contains roughly 360,000 tonnes of in-situ molybdenum; however, this does not represent reserves, recoverable metal or future molybdenum production. Glencore also brought forward expected first production from the Alumbrera restart to H2 2027 from H1 2028. Alumbrera’s processing, logistics and workforce infrastructure is expected to support the future development of MARA. SMM analysis: RIGI approval improves the project’s fiscal and regulatory certainty, but no final investment decision, molybdenum recovery plan or molybdenum output guidance has been announced, leaving no direct near-term impact on molybdenum supply.