AEMA, coalition launch legal challenge to BLM Conservation and Landscape Health Rule
The American Exploration & Mining Association was joined by a coalition in filing a challenge last Friday in the Wyoming district court.
Molycorp (OTC:MCPIQ), the beleaguered rare earths producer that was forced into bankruptcy in June, has announced a plan to restructure that may include the sale of its Mountain Pass mine in California.
The plan filed with a U.S. bankruptcy court in Delaware would allow Molycorp, the only rare earths miner and processor in the United States, to emerge from Chapter 11 bankruptcy protection “either a stand-alone reorganization that would substantially de-lever its balance sheet or a sale of substantially all of its assets,” according to a press release. If approved, the plan could reduce Molycorp’s debt by $1.9 billion as well as cut interest payments, “putting us on a more solid financial and operational footing going forward,” stated Geoff Bedford, president and CEO.
In July Molycorp received $130 million in debt financing from Oaktree Capital Management LP. In August the Greenwood, Colorado- based company moved its Mountain Pass facility into care and maintenance, while continuing to serve customers through its production facilities in Estonia and China.
Mountain Pass was expected to be America’s flagship source of rare earths. In 2010 Molycorp sensed an opportunity to capitalize on reduced rare earth oxide exports from China – which supplies about 90 percent of the world’s rare earth minerals – which caused the prices of REOs to spike. When China subsequently relaxed export rules, however, prices fell, leaving Molycorp holding the bag on a $1.25 billion expansion of Mountain Pass.
Hit by lower rare earth prices, Molycorp had warned in March it might not have enough money to remain in business. Three months later, it filed for chapter 11 bankruptcy protection.
2 Comments
george dawes
This should be no surprise as Mt Pass has been a financial loser for 30 years. Any time Molycorp could see a profit, China cut the prices. That past senior management didn’t see this coming was surprising.
Austen
It is ridiculous that the United States government allows this type of activity happen without any sort economic intervention. Yes China owns over a trillion in u.s. Debt but that is a small fraction of not only our GDP but the money owed to the u.s. China is going to fail and crumble into multiple countries bc this type of activity is now know by their citizens as well as them being sick and tired of the communist government they claim not to have anymore