Rare Earth News

Molycorp rare earth contract modification boosts shares

The shares of Molycorp, a producer of rare earth metals, increased more than 8 percent last week after the company announced a modification to a lanthanum supply contract to more accurately reflect the current rare earth oxide price.

According to Reuters, the contract modification, which took effect on July 1, will enable Molycorp to receive a higher maximum price for the lanthanum manufactured both this year and next year.

"This contract modification will help ensure continuity of fair pricing given current market conditions, a goal to which both parties are committed," chief executive Mark Smith said in a release.

The news source reports that through its rare earth mining ventures, Molycorp produces approximately 3,000 tons of the rare earths per year at its Mountain Pass mine in California.

Metal Pages reported that since the beginning of the year, the price of one kilogram of lanthanum - which is used in catalysts, batteries and as an additive in glass - has increased from around $50 to more than $150 through the end of July.