Molycorp reserve estimates up on California mine Reuters – 1 hour 39 minutes ago
Molycorp, Inc. Neo Material Technologies, Inc.
Symbol Price Change
| MCP ||35.19 ||+2.00|
| NEM.TO ||11.29 ||+0.14|
View Photo Molycrop President and Chief Executive Officer Mark Smith speaks in an interview during the Reuters Mining Summit in Toronto, March 21, 2011. REUTERS/Mark Blinch
(Reuters) - Molycorp Inc (NYS: MCP - News) said proven and probable reserves of rare earth minerals at its Mountain Pass, California mine have risen 36 percent, which could help the U.S. miner increase its output of scarce metals used in hybrid cars to wind turbines.
Chief Executive Mark Smith said ongoing exploratory drilling at Mountain Pass "may show an even larger estimate of proven and probable reserves".
The U.S. company, which is buying rare earth processor Neo Material Technologies (TOR: NEM.TO - News) for $1.3 billion, said the latest estimate expands its reserves to 18.4 million short tons of rare earth ore, compared with previous estimate of 13.6 million short tons.
The proven and probable component of Molycorp's ore body now contains about 2.94 billion pounds of contained rare earth oxide equivalent, according to SRK Consulting, compared with its prior estimate of 2.24 billion pounds, Colorado-based Molycorp said.
Rare earth oxides are used in products as diverse as Apple's iPhone and Toyota's Prius. Clamp down on exports by China, which produces more than 90 percent of the global supply of the 17 metals, last year sent prices of the oxides, metals and alloys soaring.
Molycorp shares, which have gained more than 38 percent of their value this year, closed at $33.19 on Thursday on the New York Stock Exchange.
The stock rose to $33.69 in premarket trade.
(Reporting by Shounak Dasgupta and Krishna N Das in Bangalore; Editing by Don Sebastian)