Molycorp (MCP) Sees China Importing Rare Earths by 2015 (AVL) (REE)
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Molycorp Inc. (NYSE: MCP) said that China leaders have admitted that the coutry may have to become an importer of rare-earth minerals by 2015 as internal demand swells.
China currently controls 95 percent of the global supply, according to the U.S. Geological Survey, while prices of the minerals have soared since July, when the country said it would cut exports by 72 percent.
Molycorp, owner of the largest rare-earth deposit outside of China, “Senior government leaders in China consistently stress China’s intent to continue to restrict rare earth exports, and the possibility of China becoming a net rare earth importing nation by 2015. China’s internal consumption of rare earths will continue to increase as its gross domestic product increases.”
Molycorp recently reported that its loss narrowed to $7.9 million or 10 cents per share, down from $9.1 million or 22 cents per share, while sales surged almost 10-fold to $21.7 million from $2.2 million.
Shares of Molycorp are down 7.11 percent to $42.38 in midday market movement on Tuesday.
Other companies impacted by China's rare-earth policies include, Avalon Rare Metals (AMEX: AVL) and Rare Element Resources (AMEX: REE).
China currently controls 95 percent of the global supply, according to the U.S. Geological Survey, while prices of the minerals have soared since July, when the country said it would cut exports by 72 percent.
Molycorp, owner of the largest rare-earth deposit outside of China, “Senior government leaders in China consistently stress China’s intent to continue to restrict rare earth exports, and the possibility of China becoming a net rare earth importing nation by 2015. China’s internal consumption of rare earths will continue to increase as its gross domestic product increases.”
Molycorp recently reported that its loss narrowed to $7.9 million or 10 cents per share, down from $9.1 million or 22 cents per share, while sales surged almost 10-fold to $21.7 million from $2.2 million.
Shares of Molycorp are down 7.11 percent to $42.38 in midday market movement on Tuesday.
Other companies impacted by China's rare-earth policies include, Avalon Rare Metals (AMEX: AVL) and Rare Element Resources (AMEX: REE).
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