Transaction Will Create Global, Vertically Integrated Rare Earth
Technology Leader and Give Molycorp a Greater Range of Products and
Increased Sales Opportunities Across AsiaTRANSACTION HIGHLIGHTS
The transaction will combine Molycorp′s world-class rare earth
resource and low-cost production from its Project Phoenix with Neo′s
proven leadership in the development, processing, and distribution of
technically advanced rare earth products.
The transaction will give Molycorp greater exposure to the world′s
largest and fastest-growing rare earth consuming nation ? China ?
which now comprises about 70% of global rare earth consumption.
The transaction leverages Neo Materials′ existing infrastructure to
allow Molycorp to ramp up its overall production once Project Phoenix
Phase 2 production begins in 2013.
The transaction expands Molycorp′s production capabilities to include
Neo Materials′ Magnequench patented magnet powder portfolio used to
produce neodymium-iron-boron (NdFeB) bonded rare earth magnets.
The transaction expands Molycorp′s strategic rare metals portfolio to
include gallium, rhenium, and indium, which are used in advanced
electronics, photovoltaic, aerospace, catalytic converters, and
lighting industries.
The combination is expected to be accretive to Molycorp′s 2012
earnings and cash flow. Significant identified synergies are expected
to further strengthen the financial performance of Molycorp beyond
2012.
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