The contracts were approved for launch today at the LME board meeting and will now be finalised in conjunction with market participants.

Once launched, the contracts will offer all the benefits of an exchange traded product, allowing participants access to a transparently derived price and the ability to manage price risk.

Molybdenum and Cobalt are derived from copper and nickel respectively, non-ferrous metals already traded on the LME.

Commenting on the announcement Martin Abbott, Chief Executive, London Metal Exchange said:

“The announcement heralds another new area, minor metals, in which the Exchange can provide transparent pricing and price risk management to market participants.

Minor metals have been discussed by the Exchange for some time, and fit with our core products as they are extracted with them. The volatility in these markets in recent times has highlighted the need for an exchange traded product, which the LME is best placed to provide.”

Notes to editors:

• The LME is the world’s premier non-ferrous metals market and achieved volumes of almost 93 million lots in 2007, an increase of 7% on 2006 figures and equivalent to $9,500 billion in monetary terms;
• Trading at the LME in non-ferrous metals, steel and plastics takes place across three platforms: through open-outcry trading on the “Ring”; through an inter-office telephone market and through LME Select electronic trading platform.