Molycorp to Begin Construction on Rare Earth Facility

Molycorp, Inc. (NYSE: MCP) announced that it has secured the last of several environmental permits necessary to begin construction of its new rare earth manufacturing facility at Mountain Pass, California.

Securing the permits is a milestone in Molycorp’s $531 million project to construct a complete rare earth mine-to-magnets manufacturing supply chain in the U.S. The industry is currently dominated by China, which has cut back on exports of rare earths which are essential to the production of electronics and many clean energy technologies.

The company recently secured a Streambed Alteration Agreement from the California Department of Fish and Game. Together with three previously approved permits, Molycorp now has secured all permits necessary to allow construction to start on its Mountain Pass modernization and expansion project.

The new facility is scheduled to reach full capacity by the end of 2012.

Mark Smith, CEO of Molycorp, said: "Securing these permits means that construction of our new rare earth manufacturing facility at Mountain Pass, California will proceed on schedule, with project groundbreaking occurring on January 2, 2011. Additionally, we have begun pre-stripping operations of the mine, which is preparing the way for active mining of fresh ore to commence in 2011."

Colorado-based Molycorp, Inc. is the only rare earth oxide, or REO, producer in the Western Hemisphere and currently produces approximately 3,000 metric tons of commercial rare earth materials per year. Following the execution of the Company’s “mine-to-magnets” strategy and completion of its modernization and expansion efforts at its Mountain Pass, Calif. processing facility in 2012, it expects to produce at a rate of 19,050 metric tons of REO equivalent per year and will offer a range of rare earth products, including high-purity oxides, metals, alloys, and permanent magnets.