Molycorp, Inc. (NYSE: MCP) and Japan-basedHitachi Metals, Ltd. today jointly announced that they have entered into anagreement regarding the planned formation of joint ventures for the productionof rare earth alloys and magnets in the U.S. The ventures would be focused onthe manufacture of neodymium-iron-boron (NdFeB) alloys and magnets that arevital to many clean energy, automotive, computer, health care, communicationsand other technologies.
The parties are expected to sign definitive agreements, which are subject tothe satisfaction of certain conditions, for the alloy joint venture by earlyApril 2011. Signing of definitive agreements, subject to the satisfactoryconclusion of the feasibility study and other conditions, for the joint ventureto produce rare earth magnets would follow later in 2011.
“We look forward to launching these joint ventures for production in the U.S.together with Molycorp, which has long experience and deep expertise in the rareearth industry,” said Nobuhiko Shima, President of NEOMAX Company of HitachiMetals, Ltd. “As the world’s top manufacturer of NdFeB magnets, we are wellpositioned to satisfy the growing demand from global customers for these rareearth magnets, and to contribute to an energy efficient society.”
“We are very pleased to have reached agreement in principle with HitachiMetals, the world's leading manufacturer of rare earth magnets, to launch thesejoint ventures,” said Mark Smith, Molycorp’s Chief Executive Officer. “Thesejoint ventures are an integral part of Molycorp’s ‘mine-to-magnets’ businessplan, and they move our Company and the United States one step closer torealizing the strategic goal of re-establishing a complete rare earthmanufacturing supply chain in the U.S.”
About Molycorp, Inc.
Colorado-based Molycorp, Inc. is the only rare earth oxide, or REO, producerin the Western Hemisphere and currently produces approximately 3,000 metric tonsof commercial rare earth materials per year. Following the execution ofMolycorp's "mine-to-magnets" strategy and the expected completion of itsmodernization and expansion efforts at its Mountain Pass, California processingfacility by the end of 2012, Molycorp expects to produce at a rate ofapproximately 20,000 metric tons of REO equivalent per year and intends to offera range of rare earth products, including high-purity oxides, metals, alloys,and permanent magnets.
About Hitachi Metals, Ltd.
Hitachi Metals, Ltd.,{TSE: 5468}, headquartered in Tokyo, Japan, is amaterials manufacturer that has gained distinction for its high-qualitytechnology and outstanding development capabilities. Its fiscal 2009 (endedMarch 31, 2010) consolidated sales was 431 billion yen(US$ 4,641 million). Asexpressed by the “Material Magic” communications symbol, Hitachi Metals remainstrue to the path it has taken as a manufacturer based in materials development.Hitachi Metals strives to address the needs of its customers by providing trulyoriginal products while contributing to environmental protection.
This press release contains forward-looking statements that representMolycorp’s (the “Company”) beliefs, projections and predictions about futureevents or its future performance. You can identify forward-looking statements byterminology such as "may," "will," "would," "could," "should," "expect,""intend," "plan," "anticipate," "believe," "estimate," "predict," "potential,""continue" or the negative of these terms or other similar expressions orphrases. These forward-looking statements are necessarily subjective and involveknown and unknown risks, uncertainties and other important factors that couldcause the Company’s actual results, performance or achievements or industryresults to differ materially from any future results, performance or achievementdescribed in or implied by such statements. Factors that may cause actualresults to differ materially from expected results described in forward-lookingstatements include, but are not limited to: the Company’s ability tosuccessfully conclude the feasibility study and satisfy the other conditions andenter into definitive agreements for the joint ventures; the Company’s abilityto secure sufficient capital to implement its business plans; the Company’sability to complete its modernization and expansion efforts and reach fullplanned production rates for REOs and other planned downstream products;uncertainties associated with the Company’s reserve estimates and non-reservedeposit information; uncertainties regarding global supply and demand for rareearth materials; the Company’s ability to maintain appropriate relations withunions and employees; the Company’s ability to successfully implement its"mine-to-magnets" strategy; environmental laws, regulations and permitsaffecting the Company’s business, directly and indirectly, including, amongothers, those relating to mine reclamation and restoration, climate change,emissions to the air and water and human exposure to hazardous substances used,released or disposed of by the Company; uncertainties associated withunanticipated geological conditions related to mining; and other risks discussedin the Company’s filings with the U.S. Securities and Exchange Commission,including the Company’s Quarterly Report on Form 10-Q for the period endedSeptember 30, 2010, which filings are available from the SEC.
Any forward-looking statement you read in this press release reflects theCompany’s current views with respect to future events and is subject to theseand other risks, uncertainties and assumptions relating to the Company’soperations, operating results, growth strategy and liquidity. You should notplace undue reliance on these forward-looking statements because such statementsspeak only as to the date when made. The Company assumes no obligation topublicly update or revise these forward-looking statements for any reason, or toupdate the reasons actual results could differ materially from those anticipatedin these forward-looking statements, even if new information becomes availablein the future, except as otherwise required by applicable law.
Molycorp
Media:
Jim Sims, Director of Public Affairs, 303-843-8067 begin_of_the_skype_highlighting 303-843-8067end_of_the_skype_highlighting, Jim.Sims@Molycorp.com
James McCusker,VP, ICR, Inc., 203-682-8245 begin_of_the_skype_highlighting 203-682-8245end_of_the_skype_highlighting, James.McCusker@icrinc.com
InvestorRelations:
Gary T. Dvorchak, CFA, ICR, Inc., Senior Vice President,310-954-1123 begin_of_the_skype_highlighting 310-954-1123end_of_the_skype_highlighting
Gary.Dvorchak@icrinc.com
or
HitachiMetals:
Kenichi Nishiie, Division Head, Corporate Communication, +81 (3)5765-4075 begin_of_the_skype_highlighting +81 (3)5765-4075end_of_the_skype_highlighting, hmcc@hitachi-metals.co.jp