Rare Earth's Move Lower on Large Pacific Find (MCP) (REE) (SHZ)

Rare earth stocks are trending lower today, following reports that Japanese explorers have found large deposits of the minerals on the floor of the Pacific Ocean.

According to a British Journal, Nature Geoscience, high concentrations of yttrium were found in deep-sea mud throughout the southeastern and north-central parts of the Pacific.

An associate professor of earth sciences at Japan's Tokyo University said that one square kilometer surrounding the sites would contain about one-fifth (20 percent) of the world's annual rare earth consumption.

The news comes following China's stem on rare earth exports this year, which sent prices and stocks in the sector soaring.

However, amid the large discovery, the complexity to remove the deposits means that commercialization could take up to 20 years or more.

Stocks moving on the news include:

• Molycorp (NYSE: MCP);
  
  
• Rare Element Resources Ltd. (NYSE: REE);
  
  
• Avalon Rare Metals Inc. (NYSE: AVL); and
  
  
• China Shen Zhou Mining & Resources, Inc. (NYSE: SHZ).

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