Rare earth mine reopens to bring back United States production

A major rare earth metals mine in the U.S. will restart operations in 2011. In 2004 Colorado-based Molycorp closed its rare earth mine in California. The company couldn’t compete with the low prices offered through Chinese sources. But today the cost of rare earth metals is increasing rapidly as China cuts back on exports. Article source – U.S. rare earth metals mine reopens to combat Chinese monopoly by MoneyBlogNewz.

The Molycorp Mountain Pass mine

The richest source of rare earth elements in the world is the Mountain Pass, California mine that is dormant and owned by Molycorp. Molycorp’s Mountain Pass mine closed over environmental concerns and overwhelming competition from China. The national security within the United States and the economy is totally threatened now due to the close of the Mountain Pass mine since a monopoly on rare earth metals is what China has now. Now Molycorp has secured permits and financing to restart production. In 2011, the company will produce about 3,000 tons of rare earth metals processed from ore stockpiled before the mine was closed. In 2012, it projects production at 20,000 tons.

What the China monopoly appears like

This year, 125,000 tons of rare earth metals were demanded across the globe. Of the world’s rare earth metals manufacturing, China owns a ton. About 97 percent is owned by China. You will find rare earth metals in several things. Military technology, electronic gadgets, electric car batteries and wind turbines all use them. In 2010, China appeared to be using its rare earths monopoly for geopolitical leverage. High tech manufacturing in the U.S., Japan and Europe was disrupted when it cut exports of rare earth metals by more than 70 percent. Taxes, for home-based manufacturers, were reduced on rare earth metals in China. Prices for rare earth metals rose 40 percent. Clean-energy technology corporations are moving operations to China to save costs.

Jump-starting a clean power economy

In order to guarantee a supply of rare earth metals for 7 years, Sumitomo Corp of Japan put $130 million into Molycorp. Within 18 months, manufacturing is expected by Molycorp to increase to 40,000 tons. There are currently no corporations within the U.S. with the expertise to produce emerging technologies — for instance the neodymium magnets used in wind turbines — depending on rare earth metals in a clean energy economic climate. The bastnasite ore from the Mountain Pass mine can be used in the partnership between Molycorp and Hitachi. The United States will then start to produce neodymium magnets. Currently only 10 companies located in Germany, Japan and China are licensed to make neodymium magnets.

Citations

The Guardian

guardian.co.uk/environment/2010/dec/26/rare-earth-metals-us

MIT Technology Review

technologyreview.com/energy/26980/page2/

Miami Herald

miamiherald.com/2010/12/27/1989540/weaning-ourselves-from-a-china.html