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.