Status and Plans for Molycorp’s Rare Earth Business By ...
Transcript of Status and Plans for Molycorp’s Rare Earth Business By ...
Status and Plans for Molycorp’s Rare Earth Business
By Mark Smith – President & CEO
The Future of High Performance Permanent Magnets in the USA Workshop
January 30, 2009 – Arlington, VA
Future of High Performance Permanent Magnets in the USA
What value is created through advanced permanent magnet technology if the magnets developed cannot be acquired commercially?
What US businesses and national defense programs are put at risk without reliable domestic sources for permanent magnets and rare earth materials?
Magnet Availability Security Issues
• China dominates the magnet supply chain. All sintered NdFeB and SmCo magnets are either made in China or are produced from Chinese RE materials
• The US has no sintered NdFeB magnet or magnet materials manufacturing capability
• Military and industrial applications are at risk if, as expected, China continues to allocate rare earth materials and downstream products for their own internal use
• US production of bonded NdFeB magnets is also at risk because of China’s policies to allocate raw materials for their own use
Molycorp and Permanent Magnets
It is Molycorp’s opinion that until the USA establishes a sustainable integrated domestic capability (from RE mining to finished magnets) based on America’s own strategic RE reserves, the nation’s economic security and national defense will be at risk.
Markets: Global Forecasts
Data Courtesy Dudley J KingsnorthIndustrial Minerals Company of Australia, presented SME Annual Conference, February 2008
020000
400006000080000
100000
120000140000160000
180000200000
2000 2001 2002 2003 2004 2005 2006 2007f 2008f 2009f 2010f 2011f 2012f
ROW Supply China Supply Global Demand China Demand
What are “Rare Earth” Elements?
15 metals with unique properties
Known as “The Green Metals”
Indispensable for clean energy technologies – hybrid vehicles, wind power turbines, compact florescent lighting
Indispensable for advanced water purification technologies for military, homeland security and domestic commercial applications.
Rare Earth Applications
Wind Power Turbines
US government-backed Northern Power Systems has developed the next generation of wind turbines – the Permanent Magnet Generator (PMG) which uses significant amounts of Neodymium magnets. Also applicable to other renewable energy generating systems.
Energy Efficient Light Bulbs
The production of compact florescent light bulbs requires Europium, Terbium and Yttrium.
Consumer Electronics
Screens require Europium phosphors for backlighting and Cerium for glass polish; Optical lenses require Lanthanum as a glass additive and Cerium for glass polish; Hard disk drives, CD and DVD players and speakers all require Neodymium magnets.
Some Examples of Current and Future Military Applications
• Deployed technologies
• Sophisticated communications systems
• Electronic warfare systems
• Guidance and control systems
• Smart bombs, missiles, etc.
• Advanced technologies under development
• AF’s More Electric Aircraft Program
• Army’s Future Combat Systems Program
• Navy’s Electric Warship Program
• Water Purification based on RE technology
Simplified Magnet Value Chain
RE Mining / Concentration / Separation / Precipitation and Firing to High Purity RE Element Oxides such
as Nd 2 O 3
RE Mining / Concentration / Separation / Precipitation and Firing to High Purity RE Element Oxides such
as Nd2 O3
Electrolytic Reduction of High Purity
RE Oxides to Metals such
as Nd, Pr, Sm and Dy
Electrolytic Reduction of High Purity
RE Oxides to Metals such
as Nd, Pr, Sm and Dy
Magnet AlloyPowders
Suitable for Forming into Magnet Parts
Magnet AlloyPowders
Suitable for Forming into Magnet Parts
Precision Magnet Parts
Precision Magnet Parts
97% Chinese 100% Chinese 75% Chinese25% Japanese (100% Chinese feedstocks)
75% Chinese25% Japanese (100% Chinese feedstocks)
Restoration of Domestic RE Capability – the First Step
Driven by new ownership and a new mission, Molycorp is in the process of implementing plans to restore rare earth processing capabilities at its mine in Mountain Pass, CA
Molycorp’s New Owners
• Mountain Pass rare earth assets were sold to an investor group comprising:
Resource Capital Funds - a Denver and Perth based private equity firm specializing in mining investments globally.
Goldman Sachs - a leading global banking, securities and investment management firm that provides a wide range of financial services worldwide.
Pegasus Capital Advisors - a private equity firm that focuses on businesses that make a meaningful contribution to society by positively affecting the environment, contributing to sustainability and enabling healthy living.
Traxys North America - an international metals and minerals marketing, distribution and trading company with over $4 billion in annual sales.
Various other investors including the CEO.
Molycorp Minerals, LLC
• On October 1, 2008, Molycorp Minerals, LLC was formed. The new entity owns the Mountain Pass assets, associated permits, water rights, trade marks, and intellectual property.
• Molycorp holds one of the world’s finest rare earth resources including:
extensive infrastructure;
access to water, electricity, and fuel;
easy access to Interstate 15, the Union Pacific Railroad, and Californian seaports.
• Molycorp’s Technology group is actively engaged in the development of new “cutting edge” technologies in a variety of areas with both civilian and military applications
Vision, Values and Goals• Vision: To be the world class rare earth products and
technology company recognized for its ETHICS
• Values: ETHICS - Excellence, Trust, Honesty, Integrity, Creativity and Safety
• Goals:
Produce high quality products that exceed customer expectations
Be globally competitive
Be environmentally superior
Operate its business in a sustainable way
Be a responsible steward of its Rare Earth resources
Phased Approach to Mountain Pass Restart
• Mountain Pass currently holds several significant stockpiles of lanthanum concentrate and bastnasite.
Phase 1 – Currently processing a lanthanum concentrate that is rich in Nd and Pr.
Reconfigured our separation cells to produce purified streams of didymium and lanthanum.
Began loading separation circuits in September, 2007 and now have a magnet quality didymium oxide product available for sale.
Phase 2 – Initiate cracking and separation of bastnasite stockpiles.
Phase 3 – Restart site-wide operations and complete refurbishment of processing plant to allow production of a full suite of high purity RE and specialty products.
Future Plans
Establish domestic facility to make magnet metal & alloys
Establish domestic facility to make sintered magnet parts
Mountain Pass Restart Plan
Partial Restart Concentrates
Begin Cracking Bastnasite
Resume Mining
Refurbishment Engineering
Refurbishment Construction
Full Operation
2011 2012 20132007 2008 2009 2010
Conclusion
With government and industry support Molycorp is taking steps to lead the effort that will culminate in the establishment of a sustainable domestic permanent magnet production capability - from mine to magnets – to support critical industries, energy independence and national defense.