Jan 05, 2012

Company Secures 78% of Phase 1 Rare Earth Production in Customer Agreements

Molycorp commits to production of XSORBX water treatment products

Molycorp Inc. announced that 78% of its Phase 1 rare earth production from its new Mountain Pass, Calif., manufacturing facility has now been secured by signed customer agreements or has been committed to production of the company's XSORBX water treatment products.

The company said it has entered into written agreements with customers covering 58% of its Phase 1 production, and has allocated an additional 20% to production of XSORBX. Exact terms, prices, duration and products covered by these agreements will vary from customer to customer.

Molycorp intends to sell its proprietary, cerium-based XSORBX water treatment products across four market segments: municipal water treatment, recreational/pool/spa water, industrial wastewater and drinking water purification. It is currently selling its products to commercial customers in the municipal wastewater treatment and recreational/pool/spa markets.

"I am very pleased that we have met the Phase 1 off-take allocation target that we set for 2011, and have found a home for more than three-quarters of our Phase 1 production prior to startup," said Mark A. Smith, president and CEO of Molycorp.