Molybdenum News Center

North Korea’s Expansion of Molybdenum Production

Rare Earth Mineral Mining

While mining in North Korea dates back more then a millennium, industrial-scale mining only began during the Japanese occupation at the beginning of the 20th century. Today the export of North Korean minerals is a key element in its economy and a primary avenue to generate foreign capital, with the mining of rare earth elements and associated minerals one of the fastest growing and most lucrative segments of that market. In 2011, Kim Jong Il described their importance as:

“…a precious natural resource that is urgently needed for the country’s wealth, prosperity, and development, it must thoroughly utilize them without wasting even a lump of ore…[we] must put exploration first to adequately provide the mineral reserves along with carefully establishing deep-mining measures based on the latest science and technology.”

Moreover, North Korea’s rare earth resources have been a key element in its growing economic ties with the world’s largest supplier and consumer, China, which has used its dominant position to secure rights to reserves around the world (including North Korea) and influence the worldwide prices for these precious commodities. To this end, during the mid-2000s Chinese companies formed joint ventures to establish or modernize mines and ore processing enterprises within North Korea, including molybdenum mines in at least three locations—Yonghung-ri, South Pyongan Province; Sepho-gun, Kangwon Province and North Hamgyong Province. Concurrent with these events, North Korea also enhanced its efforts to directly sell rare earth elements and associated minerals on the open market. For example, in 2003, the Korea Kwangsong Trading Corporation, located in Potonggang-guyok (District), Pyongyang, advertised a variety of ferrous and non-ferrous minerals and products available.

Molybdenum is one of the minerals that North Korea has been expanding the mining, processing and export of; it is reported to possess reserves of approximately 54,000 metric tons. Although molybdenum is not technically a rare earth element, it is often included as one because of the challenges presented in mining and processing it as well as its importance in modern metallurgic and high-tech industrial production. For example, molybdenum is used: as an alloying agent in steel, iron and nickel; as a hardening agent for titanium and other alloys; in electronics as heat sinks and electrodes; in chemical and industrial processes for corrosion resistance; in high temperature heating elements; for radiation shielding; in the production of radioactive isotopes for medical use and a variety of other applications.

A clear indicator of molybdenum’s importance is that annual worldwide production from 2000 to 2014 increased from 135,000 to approximately 264,000 metric tons while its price also increased during the same period from $5,630 to $28,400 per metric ton. Recognizing its importance, North Korea has both expanded its efforts to secure diversified private foreign joint ventures (e.g., from Brazil, United Kingdom, etc.) and to expand its production infrastructure over the past 15 years.

Expansion of the March 5 Youth Mine

Located in Chagang Province, along the Amnok River (Yalu River) on the border with China, the March 5 Youth Mine was established during the 1960s around the small village of Hoha-ri to mine non-ferrous ores. Encompassing approximately 9.94 km2 (2,457 acres) as well as several nearby villages, the facility includes an open pit mine, a rock crusher, a 1,900-meter-long covered ore conveyor belt, a non-ferrous metal production plant, dressing and processing plants, a molybdenum factory and an earthen dam. The mine’s products can easily be transported to China by truck while internal delivery would most likely also be by truck to the rail station at Chasong, approximately 32 kilometers to the southwest. Since its establishment, the mine has been held up by Kim Il Sung and Kim Jong Il as an example of a modern industrial complex and has been frequently visited by officials.

A multi-phase project to modernize and expand the March 5 Youth Mine began with a January 2008 visit by Kim Jong Il, during which time he provided guidance for the revitalization and expansion of the complex. Funding for the project came from the Korean Workers’ Party, although foreign investment (e.g., from Chinese companies, etc.) cannot be ruled out. The first phase began shortly afterwards and focused on the reclamation of the open pit mine, which suffered water infiltration from the nearby Amnok River, and modernization of the existing rock crusher, breaker and dressing plants. Reportedly, the net result was a significantly increased production capacity. This project took approximately two years to complete and in September 2010, Kim Jong Il returned to praise the workers for their efforts.

About the same time as Kim Jong Il’s September 2010 visit, the second expansion phase began, calling for the construction of a “non-ferrous metal production base.” Located approximately 600 meters south of the original dressing plant and below the earthen dam impounding the Haye stream, the project covered 75,500 m2 (18.7 acres) and included 15 new structures and a processing line as well as support buildings and an ore pit. North Korean press reports described the new facility as “…equipped with all modern production processes [that] will help make more contributions to developing the country’s economy and improving the standard of people’s living.” While official reports state that the “…workers, technicians and officials of the mine built the base in a little more than a year by their own efforts,” it is likely that foreign investment supported the construction. Construction took a little over a year and the facility was commissioned on October 15, 2012.

Construction of the Molybdenum Factory

Shortly before work was completed on the non-ferrous metal production plant, the third phase of the revitalization and expansion began. At the direction of Kim Jong Il, this phase called for the construction of a “molybdenum factory” to “…process the concentrated molybdenum produced by it as required by the developing world trend.” Construction was reportedly to be undertaken primarily by mine staff and workers, although they would be assisted by the “…teachers and researchers of the faculty of metal engineering of Kim Chaek University of Technology.” The new factory was to be built approximately 400 meters northeast of the “non-ferrous metal production base” on top of the earthen dam. This third phase also included the construction of additional support facilities for the non-ferrous metal production plant.

Satellite imagery indicates that construction of the molybdenum factory began in May 2013 with grading, earthmoving and filling operations to widen the top of the dam to create a suitable pad for the factory. The facility was completed in approximately 15 months and was commissioned on August 4, 2014. It encompasses 12,800 m2 (3.17 acres) and contains 7 structures, including the processing line. Currently, there is no reliable information concerning the types and quantities of products produced at the molybdenum factory.


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