Molycorp Minerals is stepping up to the task of revitalising the U.S. rare earth elements industry as China cuts back on its exports of the strategic materials,which are vital to high tech industry and national security.China has an increasing internal demand for the minerals,which is currently at 60% of its production.
Mark Smith,Molycorp's cordial CEO,says there is an absolutely overwhelming demand for these materials.Rare earth processing,setting up the circuits,is a very time-consuming process.Molycorp will proceed carefully and with good chemical engineering.
At its Mountain Pass,California facility,Molycorp has one of the world's largest and richest rare earth deposits.It will take an additional 100-200 million dollars to double production by 2012.So far,20,000 tons per year have been funded.The additional money would come from certain interested parties.We expect to announce some good news in that regard in the next 3-6 months,Mr.Smith indicated.
The U.S. rare earth industry withered as China became the world's dominant producer of the minerals used in everything from cell phones to wind turbines and miltary hardware,a fact now regretted in the halls of Congress.A bill providing for revitalisation of the rare earth industry died in the last session of Congress, when it was passed by the House,but the Senate failed to take it up.The legislation,which authorised loan guarantees for rare earth projects,may be reintroduced in the new Congress.
Molycorp Minerals(MCP)
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