A large field containing rich deposits of rare molybdenum has been found in south China's island province of Hainan, local authorities said.

Molybdenum is a hard, silvery mineral mainly used in toughening alloy steels and softening tungsten alloys. It is used in aviation, construction and military material manufacturing industries.

The proven reserves of the mine in Baoting County are estimated at 254,000 tons worth of more than 100 billion yuan (14.6 billion U.S. dollars), making it one of the 10 largest molybdenum mines in the country, according to a statement from the Hainan Provincial Mining Association on Sunday.

Hainan Jinzhoucheng Molybdenum Co. Ltd, which received the exploration rights of the mine last year, is expected to invest 1.5 billion yuan to build it into a top five molybdenum company in China with an annual production capacity of 10 million tons.

The mine is expected to produce 7,000 tons of molybdenum annually with sales revenue of 1.3 billion yuan. The infrastructure construction will be completed in two years.

(Xinhua News Agency October 6, 2008)