Molycorp to expand rare earth operation to Estonia
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Molycorp Inc., which owns the only rare earth mine in the U.S., plans to double its processing capacity by buying a European plant.
The Colorado-based company said Monday that it was buying 90% of Estonia-based AS Silmet for $89 million –- 80% from AS Silmet Grupp and another 10% from Austrian chemistry and metallurgy company Treibacher Industrie.
The facility in Sillamae, Estonia, will immediately begin processing 3,000 metric tons of rare earths –- a group of 17 metal elements used in clean technologies such as wind turbines and electric vehicles. Molycorp’s mine in Mountain Pass, Calif., which will provide the raw materials, can also process about 3,000 metric tons.
The move will help Molycorp grab a larger chunk of the rare earths supply chain. China produces more than 95% of the world’s supply at the moment and has indicated that not much of it will cross its borders.
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-- Tiffany Hsu
