A comprehensive export strategy for molybdenum has been meticulously crafted through collaborative efforts between USAID, Ameria Management Advisory, and Modex Consulting, with notable contributions from international expert Andreas Klassen.
The strategic plan positions molybdenum as a pivotal export product for Armenia, with targeted initiatives aimed at bolstering the country’s global standing in molybdenum production. As reported by Modex, the strategy outlines specific actions designed to enhance Armenia’s competitive position in the international market.
Molybdenum’s significance in modern industrial applications cannot be overstated. The metal’s exceptional physicochemical properties make it crucial in developing high-performance alloys that ensure equipment strength and corrosion resistance. These specialised alloys find critical applications in diverse sectors, including aerospace, chemical and pharmaceutical manufacturing, and complex architectural engineering.
Armenia has already established itself as a formidable player in global molybdenum production. In 2023, the country secured the sixth position worldwide, producing 10,900 tonnes—representing approximately 4% of global production. The nation trails only behind industrial powerhouses such as China, Chile, the United States, Peru, and Mexico.
The export strategy’s robustness is underscored by Armenia’s impressive comparative competitive advantage. Using the Balassa index—a metric developed by Hungarian economist Béla Ballasa—Armenia’s molybdenum export competitiveness reached a remarkable 171 in 2023. This index compares a product’s export share within a country’s total exports against its global export proportion.
Interestingly, despite its significant production capabilities, Armenia remains unaffiliated with the International Molybdenum Association (IMOA), presenting potential future opportunities for international engagement and market expansion.
The strategic plan draws inspiration from the economic principles of comparative advantage, originally conceptualised by renowned English economist David Ricardo. By leveraging its inherent production strengths, Armenia aims to carve a distinctive niche in the global molybdenum market.
As the strategy unfolds, stakeholders anticipate strengthened international trade relationships and enhanced economic opportunities for Armenia’s mining and export sectors.
