June 9, 2009 / 4:29 PM / 9 years ago

Thompson Creek sees rising molybdenum demand

* To increase molybdenum production

* Sees lower production costs

* Shares up 3.8 pct in Toronto

TORONTO, June 9 (Reuters) - Thompson Creek Metals Co TCM.TO sees demand for molybdenum improving slightly in the remainder of 2009, after having plummeted earlier in the year, Chief Executive Kevin Loughrey said on Tuesday.

“The market has rebounded slightly and we think we will do a little better than earlier indicated,” Loughrey told investors at the RBC Global Mining and Materials Conference in Toronto.

Toronto-based Thompson Creek is a pure play molybdenum producer.

Molybdenum, which is used as a strengthening and anti-corrosion agent in steel, had seen demand and prices plunge earlier this year due to the global economic slowdown.

However, molybdenum pricing has slowly begun to edge higher in recent weeks. MLY-OXIDE-LON

On Monday, Thompson Creek said it was restarting a portion of its curtailed production. The change in operating plans will result in production and sales in 2009 being about 10 percent higher than previously expected.

The company said it will continue to monitor market conditions and remain flexible to adjust production levels again, if needed.

Thompson Creek now expects production and sales of molybdenum from its own mines will be in a range of 22 million to 26 million pounds in 2009, up from a prior forecast of 20 million to 24 million pounds.

The company also said it expects its cash production costs to be lower than forecast.

Thompson Creek’s shares were up 3.8 percent at C$11.23 on the Toronto Stock Exchange at midday. (Reporting by Euan Rocha; editing by Rob Wilson)

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