Molycorp to suspend production at Mountain Pass facility by Oct. 20

By Caroline Salls

Pittsburgh, Aug. 26 – Molycorp, Inc. will transition its Mountain Pass Rare Earth Facility to a “care and maintenance” mode, according to a news release.

The company said it plans to continue serving its rare earth oxide customers via its production facilities in Estonia and China.

Molycorp said rare earth production at the Mountain Pass facility will be suspended no later than Oct. 20 and the site, including idled machinery and equipment, will be maintained to ensure it remains in a safe and stable condition and that government regulatory commitments can be met.

Rare earth pricing, which has declined dramatically over the past four years, was a key factor in the decision to suspend rare earth production at Mountain Pass, the company said in the release.

Customers of Molycorp’s rare earth magnetic materials, as well as its rare earth-based water treatment products, will not be impacted, the release said.

Molycorp is being advised by the investment banking firm of Miller Buckfire & Co. and is receiving financial advice from AlixPartners, LLP. Jones Day and Young, Conaway, Stargatt & Taylor LLP act as legal counsel to the company in this process.

Molycorp is a Greenwood Village, Colo., producer of materials from rare earth minerals that filed for bankruptcy on June 25 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 15-11357.

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