Molycorp Eyes Refining Heavy Rare Earth in Non-China Country

U.S. major rare earth producer, Molycorp projects to build a global supply network of heavy rare earths by utilizing its group bases. The firm plans to send heavy rare earth concentrate to Chinese plant of Neo Material Technologies, of which Molycorp announced the acquisition in March 2012, and to refine the concentrate into rare earth. In future, the firm tries to start refinement of heave rare earths in the U.S.A. and Estonia, too.

Molycorp presently produces heavy rare earth concentrate at Mountain Pass mine in California, the firm’s main mine, and at Molycorp Silmet in Estonia, which Molycorp made the wholly owned subsidiary in October 2011. Molycorp plans to start the concentrate refinement in China after the completion of acquisition for Neo Material Technologies.

In future, Molycorp can construct additional heavy rare earths refining plant in the U.S.A. and Estonia by merging processing technologies of Neo Material Technologies.

Dysprosium and terbium, the major heavy rare earths, are vital materials to improve heat resistance of permanent magnets applied to motors on electric vehicles and energy saving electric appliances. However, heavy rare earth supply is limited only from the southern areas of China. Chinese government has restricted the country’s rare earth export in recent years by setting export licenses and other measures.

Molycorp has currently implemented new deposit exploration in the area 8 kilometers south from Mountain Pass mine which is expected to be abundant with terbium and dysprosium. If the firm constructs new processing plants in the U.S.A. and Estonia, Molycorp’s presence could enhance as the non-Chinese supplier of heavy rare earths.