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DJ Origo Partners Buys $10M Stake In Mongolian Mineral ExplorerDJ Origo Partners Buys $10M Stake In Mongolian Mineral Explorer

Soruce : Mario Christodoulou 

02 Jun 2011 06:41 GMT

(Dow Jones)–Private equity investors Origo Partners PLC (OPP.LN) said Thursday it has purchased a $10 million stake in a Mongolian mineral exploration company to take advantage of increasing demand for metal minerals in China.

Origo, which is based in China, said it purchased 20% of Moly World Ltd., a molybdenum explorer based in Mongolia. Molybdenum is an element that is often combined with metals such as iron to produce hardened steels.

Origo said it believes the company will benefit from ongoing demand for minerals such as Molybdenum in China, as the country builds infrastructure to service its growing city population. The company said while China currently uses approximately 50% of the world’s steel output, it only uses around 30-35% of the world’s molybdenum. “As the Chinese steel industry produces increasing volumes of high value steel alloys, the latter figure is expected to rise significantly,” Origo said in a statement.

Origo Chief Executive Chris Rynning said growing demand from Chinese steel producers for molybdenum is expected to sustain mineral prices over the next few years.

-By Mario Christodoulou, Dow Jones Newswires;02 Jun 2011 06:41 GMT

(Dow Jones)–Private equity investors Origo Partners PLC (OPP.LN) said Thursday it has purchased a $10 million stake in a Mongolian mineral exploration company to take advantage of increasing demand for metal minerals in China.

Origo, which is based in China, said it purchased 20% of Moly World Ltd., a molybdenum explorer based in Mongolia. Molybdenum is an element that is often combined with metals such as iron to produce hardened steels.

Origo said it believes the company will benefit from ongoing demand for minerals such as Molybdenum in China, as the country builds infrastructure to service its growing city population. The company said while China currently uses approximately 50% of the world’s steel output, it only uses around 30-35% of the world’s molybdenum. “As the Chinese steel industry produces increasing volumes of high value steel alloys, the latter figure is expected to rise significantly,” Origo said in a statement.

Origo Chief Executive Chris Rynning said growing demand from Chinese steel producers for molybdenum is expected to sustain mineral prices over the next few years.

-By Mario Christodoulou, Dow Jones Newswires;