A major molybdenum industry cooperation project worth 2.8 billion yuan ($398.05 million) was signed between Northeast China's Jilin province and Northwest China's Shaanxi province on Feb 21, according to local reports.

The signing ceremony was held online due to the current novel coronavirus outbreak, with participants including Jing Junhai, Jilin's provincial governor and Liu Guozhong, Shaanxi's provincial governor.

The project was initially launched by Jilin Tianchi Molybdenum Company and Inner Mongolia Tianshou Technological Development Company and was then joined by companies Shaanxi Jinduicheng Molybdenum and Jilin Yadong Investment, according to officials.

Molybdenum is a precious metal with high temperatures and corrosion resistance, making it an important additive in iron and steel smelting -- and molybdenum products are widely used in the aerospace and military sectors.

Shaanxi and Jilin's molybdenum reserves rank among the top three in the country and Shaanxi Jinduicheng Molybdenum is rated as the most influential molybdenum company in Asia, bringing great cooperation potential for two provinces, according to officials.

The two attending governors both hoped that the cooperation would promote partnership between two places in more fields in higher level.

Jilin Tianchi Molybdenum Company, which is based in Shulan city, has proven reserves at its molybdenum mine of 719,000 tons and it estimates that prospective molybdenum reserves could top 1.3 million tons.

According to the new agreement, Tianchi Molybdenum is expected to process 8.25 million tons of ore per year and produce 16,000 tons of molybdenum concentrate annually, after reaching design capacity.

It is expected to achieve an annual output value of 1.45 billion yuan, a profit of 320 million yuan and taxes of 330 million yuan, providing employment for 1,000 people.

Based on the project, Shulan city plans to promote the construction of a molybdenum industrial park, which covers a planned area of 150 hectares with a total investment of 10 billion yuan, officials said.