5619 DTC Parkway Suite 1000
Greenwood Village, CO 80111
Phone: +1 (303) 843-8040
Fax: +1 (303) 843-8082
email: info@molycorp.com
MAP
HC1 Box 224, 67750 Bailey Road
Mountain Pass, CA 92366
Phone: (888) 577-7790 or (760) 856-7619
Fax: (760) 856-2344
Email: operations@molycorp.com
MAP
8220 West Harrison Street, Tolleson, AZ 85353
Mailing address: P.O. Box 709, Tolleson, AZ 85353-0709
tel: (623) 936-1481
fax: (623) 936-5802
email: randall.ice@molycorp.com
MAP
Molycorp Sales:
+1 (303) 843-8043
Email Us
Molycorp Customer Service:
+1 (303) 843-8040
Email Us
|
Observations on Recent Events -- and What They Mean for Molycorp Posted on 9/21/2011 1:00:00 PM
Let me take this opportunity to comment on some recent developments in the rare earth world -- and outline some of the basics about our industry that sometimes get overlooked by commentators and the news media.
First of all, as most people understand, China now produces more than 95% of the world’s current demand for rare earth. However, recent statements from Chinese government and industry leaders have reinforced the likelihood that this dominant position of supply to the rest of the world is unlikely to continue. The clear and unambiguous messages that China continues to send to the world are these:
- China does not intend to remain the rest of the world’s primary supplier. Instead, they will consume more of their own rare earths and export less.
- They see tight global supplies and high prices of rare earths as an “irreversible trend."
- They believe that the rest of the world must start meeting more of its own demand with its own supply.
As China continues to make less supply available and global demand for rare earths continues to grow, it is clear that new sources of production must come online soon. In fact, rare earth shortages are forecast in 2011, and likely into 2012.
So, I am often asked, where does that position Molycorp?
For one, this is why our company is focused like a laser on completing Project Phoenix, our $781 million modernization and expansion project at Mountain Pass, California, which will provide the world with a high volume source of rare earth material and an alternative to dwindling Chinese exports.
In just over 9 months, we will be mechanically complete with our Phase 1 production capacity expansion. By the end of 2012, we expect to be producing at an annual rate of approximately 19,050 metric tons (mt) of rare earth oxide (REO).
Our Phase 2 production capacity expansion of up to 40,000 mt REO will be complete by the end of 2013.
Most important, Project Phoenix is fully funded, we remain on time and on budget, and we are constantly looking for ways to accelerate our timeline.
Right now, we are selling every kilogram of product we produce, and we’re selling it at the highest margins in the history of our company. We look forward to increasing our production and helping to meet an ever-growing portion of the world's demand for these strategically critical materials.
Yes, the rare earths industry is complex and dynamic. But the fundamentals have not changed; the factors that influence it reflect basic supply and demand fundamentals. These are the factors that guide our planning, our intense focus on the execution of our project, and our certainty that we are building a highly successful business well-equipped for the long term. |
|