HomeInternationalBankrupt Molycorp attracts acquisition interest

Bankrupt Molycorp attracts acquisition interest

Molycorp, the bankrupt rare earths producer which is in the process of shutting down its Mountain Pass operation in California, is attracting potential interested buyers.

A number of parties from Asia and Europe are said to be interested in the company including one of the few major rare earths companies outside of China – Australia’s Lynas Corp.

Molycorp filed for bankruptcy in June and officially announced this decision to market in October. The company announced on Monday its commencement to transition its Mountain Pass rare earth facility to a “care and maintenance” mode while it plans to continue serving its rare earth oxide customers via its production facilities in Estonia and China.

Customers of the company’s rare earth magnetic materials, as well as its rare earth-based water treatment products, will not be impacted. These facilities are believed to be more valuable than Mountain Pass.

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, company officials says.

As the only successful non-Chinese rare earths miner and processor, Lynas would be considered ignorant if it did not consider acquiring Molycorp’s assets.

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