Shares in Molycorp Inc. (MCP) rose nearly 4.52 percent
in pre-market trading to $9.95 on Monday, after the company announced that it
has stated work at its new rare-earth mine in California.
The company's mine in Mountain Pass in California will
produce heavy rare earth elements that can be used in applications such as
hybrid electric vehicles and consumer electronics.
Molycorp also
announced that its on-site Combined Heat and Power (CHP) plant will begin
feeding low-cost, high efficiency electrical power and steam this week to its
Mountain Pass facilities. Molycorp's CHP plant is fuelled by clean-burning
natural gas fed to the facility by a recently completed natural gas lateral
supply line that connects the facility to a nearby interstate natural gas
pipeline operated by Kern River Gas Transmission Company.
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President and CEO Mark A. Smith said the company
remains on track to achieve a full first-phase production rate at Mountain Pass
in the final three months of this year.
“We have launched
operations of Project Phoenix’s heavy rare earth concentrate facilities on
schedule, our combined heat and power plant is set to begin powering our new
facilities this week, and we remain on track to achieve full Phase 1 production
rates at Mountain Pass in the fourth quarter of this year.”
The heavy rare earth concentrates can be processed to
yield rare earth oxides, metals, alloys and magnetic materials that have a wide
range of industry applications including the automotive sector and the
electronics industry.
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