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United States Mining Company Restarts Manufacturing Of Rare Earth Metals
A major rare earth metals mine within the U.S. will restart operations in 2011. In 2004 Colorado-based Molycorp closed its rare earth mine in California. The company couldn’t compete with the low prices offered through Chinese sources. However, China has began to manipulate supplies, which has caused prices for rare earth metals to rise dramatically.
Information about the Molycorp Mountain Pass mine
The richest source of rare earth elements within the world is the Mountain Pass, California mine that is dormant and owned by Molycorp. Molycorp’s Mountain Pass mine closed over environmental concerns and overwhelming competition from China. However, since the Mountain Pass mine closed China has built a monopoly in rare earth metals that threatens the economy and national security of the U.S. Now Molycorp has secured permits and financing to restart manufacturing. In 2011, the company will produce about 3,000 tons of rare earth metals processed from ore stockpiled before the mine was closed. A manufacturing of 20,000 tons is expected in 2012.
Monopoly in China
Global demand for rare earth metals was 125,000 tons in 2010. China controls 97 percent of the world’s rare earth metals production. There are rare earth metals in several things. Military technology, electronic gadgets, electric vehicle batteries and wind turbines all use them. Several suspect what China was doing with its rare earths monopoly this year. Supposedly geopolitical leverage was the plan. High tech manufacturing in the U.S., Japan and Europe was disrupted when it cut exports of rare earth metals by more than 70 percent. China reduced taxes for domestic manufacturers. This was for all rare earth metals. Rare earth metals went up in price. There was a 40 percent increase. Clean-energy technology corporations are moving operations to China to save costs.
Economic climate with green energy
In order to guarantee a supply of rare earth metals for 7 years, Sumitomo Corp of Japan put $130 million into Molycorp. Within 18 months, manufacturing is expected by Molycorp to increase to 40,000 tons. The neodymium magnets used in wind turbines are an example of the emerging technology that uses rare earth metals in a green energy economy. In the United States, there are currently no companies that can do this. The bastnasite ore from the Mountain Pass mine will be used within the partnership between Molycorp and Hitachi. The United States will then start to produce neodymium magnets. Currently only 10 businesses located in Germany, Japan and China are licensed to make neodymium magnets.
Citations
The Guardian
guardian.co.uk/environment/2010/dec/26/rare-earth-metals-us
MIT Technology Review
technologyreview.com/energy/26980/page2/
Miami Herald
miamiherald.com/2010/12/27/1989540/weaning-ourselves-from-a-china.html
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