Molycorp Expands Rare Earth Production, Will Increase Capacity by 35 Million Tons

Molycorp is the only producer of rare earth oxides (REO) in the Western Hemisphere, and the largest rare earth producer outside of China. Molycorp is also the controlling shareholder of Molycorp Silmet AS, headquartered in Estonia. Molycorp Silmet AS is one of the largest producers of rare metals and rare earth metals in Europe, producing approximately 3,000 metric tons of rare earth products and 700 metric tons of rare metal products annually.

Rare earths are important elements in LED phosphors and other fluorescent lighting fixtures. Molycorp plans to expand its rare earth production capacity and has announced it will restart rare earth mining operations in the desert near Mountain Pass, California. The Mountain Pass mine was discovered in the 1950s and was once considered the world's largest rare earth reserve. Molycorp hopes this will offset China's previous restrictions on rare earth production and exports.

Mark A. Smith, President and CEO of Molycorp, stated: "The company has announced that it will accelerate rare earth production, now adding 35 million tons. Rare earth production is expected to reach 8,000 to 10,000 tons by 2012. We are accelerating this project because of its strong economics and strong market demand for rare earths. Accelerating production also expands the diversity of global supply, which is an increasingly pressing issue for rare earth consumers today."