Posted by:
Phazer
(
)
Date: December 11, 2017 02:38PM
From one article in 2012.
https://www.wired.com/2012/05/rare-earth-mining-rises-again/"China now controls 95 percent of total rare-earth supply. A figurative sneeze on its export policy is all that’s needed to shake global markets, and in 2010 China began restricting rare-earth exports. International prices spiked, reaching near-dizzying levels last summer before crashing in the fall. In the wake of the World Trade Organization case, they’ve perked up again."
"Foreign companies buying rare earths from China must now pay more than twice the rate paid by companies inside China. The tiered pricing encourages companies to move factories and jobs to China, where they can be sure of supply and lower prices. Beyond the extra economic boost for China, this has made it easier for Chinese companies to steal foreign intellectual property. Businessmen and politicians worry that China’s dominance over these 17 elements is a strategic vulnerability, discouraging innovation and threatening national defense."
The article mentioned a company called MolyCorp that was one of few Rare earth mining operations in the United States.
Fast forward to 2015, MolyCorp went into bankruptcy. The mine they were operating was Mountain Pass in California. Then Chinese companies came over to try and gobble it up.
https://www.bloomberg.com/news/articles/2017-06-22/the-distressed-debt-standoff-over-america-s-only-rare-earth-mineIt was Economic Sabotage that forced MolyCorp into bankruptcy
http://www.mining.com/mountain-pass-sells-20-5-million/"Mountain Pass was the only rare earths mine operating in the United States, before it went bankrupt in 2015 – a victim of low rare earth oxide prices. At the time Molycorp listed $1.7 billion in debt. Through bankruptcy proceedings Molycorp was restructured, allowing it to receive $130 million in debt financing."
"Molycorp then moved Mountain Pass into care and maintenance, while continuing to serve customers through its production facilities in Estonia and China."
"Mountain Pass was expected to be America’s flagship source of rare earths. In 2010 Molycorp sensed an opportunity to capitalize on reduced rare earth oxide exports from China – which supplies about 90 percent of the world's rare earth minerals – which had caused the prices of REOs to spike. When China subsequently relaxed export rules, however, prices fell, leaving Molycorp to pay the bill for a $1.25 billion state-of-the-art processing facility."
"Hit by lower rare earth prices, Molycorp warned it might not have enough money to remain in business."