Molycorp, Inc. is a rare earth oxide (REO) producer in the Western hemisphere and own most fully developed rare earth project outside of China. The Company has made investments, and focuses on investing in developing applications for individual rare earth elements (REEs). The Company estimates total proven and probable reserves of 2.21 billion pounds of REO, with an average ore grade of 8.24%, using a cut-off grade of 5%, at its Mountain Pass mine. At its Mountain Pass facility, the Company mines, crushes, mills and separates rare earth ore to produce individual REEs. It holds a 30-year mine plan permit and an associated environmental impact report, both of which were issued during the year ended December 31, 2004.
The Company is producing and selling small quantities of REOs from its pilot processes using stockpiled feedstocks. It completed processing stockpiled lanthanum to recover neodymium and praseodymium, and produce didymium oxide (a combination of neodymium and praseodymium). The Company is commencing a second pilot processing campaign to recover cerium, lanthanum, neodymium, praseodymium and a samarium/europium/gadolinium concentrate from bastnasite concentrate stockpiles.