Molycorp acquires $89million controlling stake in AS Silmet

BBY rare earth’s conference presenter, Molycorp Inc. has been given a first-time entry into the rare earths processing sector, through the acquisition of a controlling stake in AS Silmet. The deal valued at $89 million will provide the company with its first European base of operations, as well as doubles the current rare earth oxides production (Source: Reuters).

Molycorp said that its subsidiary Molycorp Minerals LLC bought 90% of the Estonia-based rare earth processor which will bolster its own rare earth mine and processing facilities in Mountain Pass California. Molycorp President, CEO and Director, Mark Smith said in a conference with analysts, the deal means both rare earths companies "will be able to take advantage of the very robust price situation in the market right now."

Molycorp will provide rare earth minerals from its mine in California to AS Milnet, making that facility the first in Europe that doesn’t depend on China for any material. AS Silmet is one of only two rare earth processing facilities in Europe.

Molycorp said the acquisition expands its ability to make rare metals niobium and tantalum, key elements in a range of industrial magnets critical to the function of electronic products.

BBY CEO & MD, Glenn Rosewall said, “This is exciting news for Molycorp and coincides with the increased interest in Molycorp and the timing of our BBY Rare Earth’s Conference on the 11th and 12th of April at the Establishment Hotel in Sydney.