ME home
 
  SME FaceBook SME Twitter SME LinkedIn RSS Feed

Subscriber or
SME Member Log On

WEB-ONLY CONTENT

Go to SME eNEWS

MINING INDUSTRY EVENTS

AusIMM Underground Operators Conference  - Conference
Oct 16, 2017 - Oct 18, 2017
Internat'l Congress of Mining Machinery Technology  - Conference
Oct 18, 2017 - Oct 21, 2017
Exploration 2017  - Conference
Oct 21, 2017 - Oct 25, 2017
Sustainable Industrial Processing Summit-Exhibit  - Conference
Oct 22, 2017 - Oct 26, 2017

METAL PRICES


Au
Ag
Pt
Pd
Ni
Cu
Al
Pb

AGGREGATES
AND MINERALS
MARKETPLACE


http://aggregatesmineralsmarketplace.com
The Mining Engineering, SME and NSSGA
Online Buyers Directory Site
The Online Global Mining and Minerals Library Site

Mountain Pass Mine sold at auction for $20.5 million
June 19, 2017

MP Mine Operations, a consortium led by Chinese rare earths mining company Shenghe Resources, submitted a bid of $20.5 million for the Mountain Pass rare earths mine in California. MP Mine Operations, won the auction for the lone functioning rare earths mine in the United States by outbidding a consortium made up of ERP Strategic Minerals LLP, Swiss private equity firm Pala Investments and Peak Resources (ASX:PEK), an Australian rare earths company.

The Mountain Pass Mine was owned by Molycorp which looked to capitalize on reduced imports of rare earth oxides (REO) from China in 2010. The company invested $1.25 billion in a state-of-the-art processing facility when the price of REO’s spiked, but when China eased its rules on exports the price of REO dropped and Molycorp began a tailspin that would end with the company filing for chapter 11 bankruptcy protection. The Mountain Pass Mine was put into care and maintenance. At the time Molycorp listed $1.7 billion in debt. Through bankruptcy proceedings Molycorp was restructured, allowing it to receive $130 million in debt financing.

The sale of the mine still faces scrutiny from regulators, who may take issue with foreign ownership of a strategic asset. Rare earths are used in a number of important economic and strategic applications including magnets for green technologies like wind turbines and hybrid cars, aircraft engines and computer hard drives.

Mountain Pass was expected to be America’s flagship source of rare earths. In 2010 Molycorp sensed an opportunity to capitalize on reduced rare earth oxide exports from China – which supplies about 90 percent of the world's rare earth.

 

Related article search: