Molycorp (MCP) Sees Pressure After Reports of Large Rare Earth Discovery In China
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After surging Tuesday on a bullish analyst call, Molycorp, Inc. (NYSE: MCP) is seeing some downside action Wednesday following reports of a large rare earth discovery in China which threatens to increase supply and possibly weigh on prices.
According to earlier reports from Xinhau, geologists in east China's Zhejiang Province have discovered a huge rare earth deposit that has more than 70 tonnes of scandium.
Scandium is one of 17 of the rare earth minerals, used in electronics devices and other high-tech products.
In addition to scandium, 800 tonnes of silver, 130,000 tonnes of lead and zinc, and 3,000 tonnes of cadmium were found. Also, substantial quantities of stannum, gallium and rhenium were discovered.
Shares of MCP are down 0.75 percent to $59.20 Wednesday morning.
According to earlier reports from Xinhau, geologists in east China's Zhejiang Province have discovered a huge rare earth deposit that has more than 70 tonnes of scandium.
Scandium is one of 17 of the rare earth minerals, used in electronics devices and other high-tech products.
In addition to scandium, 800 tonnes of silver, 130,000 tonnes of lead and zinc, and 3,000 tonnes of cadmium were found. Also, substantial quantities of stannum, gallium and rhenium were discovered.
Shares of MCP are down 0.75 percent to $59.20 Wednesday morning.
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