US rare earth developer, Molycorp’s CEO Mark Smith said to a reporter of Japan Metal Bulletin on Friday in Tokyo the firm provides 50% of the rare earth production to important Japanese customers. He said the firm starts mass production at new deposit for dysprosium and other heavy rare earth in January 2013 subject to US authority’s approval.
The firm makes rare earth products from residue of past mining operation while the firm stopped mining activity. The firm resumes mining at Mountain Pass mine to launch refinery with annual 19,050 tonnes of high purity rare earth oxides output capacity in April 2012. The firm expects the project reaches full capacity operation by end of 2012. The firm doubles the output capacity to annual 40,000 tonnes in 2013. The firm develops new deposit located in 10 kilometers from Mountain Pass. The firm treats ore from the new deposit at facility of Mountain Pass. Mr. Smith said with the new deposit operation, the firm can increase the heavy rare earth weight in 40,000 tonnes of annual output capacity. Japanese buyers seek new source of rare earth, especially for heavy rare earth of dysprosium. The rare earth is indispensable to improve heat resistance of motor magnet of electric vehicle and high performance appliances. Mr. Smith said the firm now supplies neodymium to Japanese major magnet maker and tries to support the user to avoid the magnet production move to China. The firm acquired US subsidiary of Hyogo based rare earth alloy maker, Santoku Corporation in April to extend the supply chain to magnet alloy. He said the firm is now in talk with potential joint venture partner and will announce the result soon.