Molycorp Chosen to Supply Rare Earths for Use in High-Efficiency Siemens Wind Turbine Generators
April 15 2015 - 7:00AM
Siemens AG ("Siemens") has selected Molycorp, Inc. (NYSE:MCP)
("Molycorp") to supply rare earth materials over the next 10 years
from its Mountain Pass, California facility for incorporation into
Siemens' high-efficiency, direct drive wind turbine generators.
Molycorp will supply rare earth materials to Shin-Etsu Chemical
Co., Ltd. ("Shin-Etsu"), which will produce the rare earth magnets
Siemens intends to utilize in its wind turbines. Siemens officials
noted that key factors in choosing Molycorp were Molycorp's ability
to provide greater global diversification and reliability to its
supply chain, as well as the environmental and process innovations
Molycorp has built into its Mountain Pass rare earth facility.
Among those innovations are the facility's ability to recycle
water, regenerate the chemical reagents needed in rare earth
production, generate power from a high-efficiency natural gas
cogeneration power plant, and dispose of mine tailings through an
innovative paste tailings system. Siemens officials said that the
magnets to be used in its direct drive wind turbines will contain
reduced levels of heavy rare earth elements (HREEs), such as
dysprosium. In collaboration with Siemens Wind Power, Molycorp and
Shin-Etsu will improve the magnet material to reach zero HREEs,
Siemens said. At the same time, Siemens added, supply chain
reliability will be increased and costs will be reduced. "The
contract with Shin-Etsu and Molycorp is an important step for us in
sourcing magnet materials for our direct drive wind turbines," said
Morten Rasmussen, Head of Technology at Siemens Wind Power and
Renewables Division. "We strive for diversification in the sourcing
of these components to improve independency from specific markets."
"We are very pleased to have been selected to supply Siemens and
Shin-Etsu with rare earth magnetic materials for this important
clean energy supply chain project," said Geoff Bedford, Molycorp's
President and Chief Executive Officer. "This agreement underscores
Molycorp's commitment to partner with our customers to support
their product development efforts and serve as an integrated,
long-term provider of reliable rare earth supply." More information
on Siemens' direct drive wind turbines can be seen here:
- Siemens' D3 Platform:
http://www.energy.siemens.com/hq/en/renewable-energy/wind-power/platforms/d3-platform/
- Siemens' D7 Platform:
http://www.energy.siemens.com/hq/en/renewable-energy/wind-power/platforms/d7-platform/
ABOUT MOLYCORP Molycorp is the only
advanced material manufacturer in the world that both controls a
world-class rare earth resource and can produce high-purity, custom
engineered rare earth products to meet increasingly demanding
customer specifications. With production facilities on three
continents, the Company produces a wide variety of specialized
products from rare earth elements and five rare metals (Gallium,
Indium, Rhenium, Tantalum and Niobium). The Company produces rare
earth magnetic materials through its Molycorp Magnequench
subsidiary, including neodymium-iron-boron (NdFeB) magnet powders,
used to manufacture bonded NdFeB permanent rare earth magnets. The
Company also markets and sells a line of rare earth-based water
treatment products. For more information please visit
http://www.molycorp.com. SAFE HARBOR STATEMENT
REGARDING FORWARD-LOOKING STATEMENTS This release
contains forward-looking statements that represent Molycorp's
beliefs, projections and predictions about future events or
Molycorp's future performance. Forward-looking statements can be
identified by terminology 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 or phrases. These
forward-looking statements are necessarily subjective and involve
known and unknown risks, uncertainties and other important factors
that could cause Molycorp's actual results, performance or
achievements or industry results to differ materially from any
future results, performance or achievement described in or implied
by such statements. Factors that may cause actual results to differ
materially from expected results described in forward-looking
statements include, but are not limited to: Molycorp's ability
meet the standards necessary to maintain its listing on the New
York Stock Exchange or other stock exchange, including its ability
to cure any non-compliance with such listing standards; the need to
secure additional capital to implement Molycorp's business plans,
and Molycorp's ability to successfully secure any such capital,
including the ability to successfully access the remaining
commitment under the financings with certain funds managed by
Oaktree Capital Management, L.P.; Molycorp's ability to make
interest payments on its existing debt; Molycorp's ability to repay
its debt, whether at maturity, pursuant to any acceleration, or
otherwise; Molycorp's ability to optimize and ramp up production at
its Mountain Pass rare earth mine and processing facility, which we
refer to as the Mountain Pass facility, and the ability to develop
internal and external demand for REO and other downstream products,
including the ability to operate at commercial production rates and
competitive cash production costs, in each case within the
projected time frame; Molycorp's ability to economically
produce chemical reagents from waste water at the Mountain Pass
facility on a consistent basis; the success of Molycorp's cost
mitigation efforts in connection with the optimization and ramp up
of the Mountain Pass facility, which, if unsuccessful, might cause
its costs to exceed budget; the final costs of Molycorp's planned
capital projects, which may differ from estimated costs; Molycorp's
ability to achieve fully the strategic and financial objectives
related to its acquisitions, including in respect of Molycorp's
financial condition and results of operations; risks and
uncertainties associated with intangible assets, including any
future goodwill impairment charges and the ability to develop and
protect intellectual property related to products and operations;
risks associated with Molycorp's ability to protect its
intellectual property, including the infringement of intellectual
property of third parties; market conditions, including prices and
demand for Molycorp's products; Molycorp's ability to control its
working capital needs; foreign exchange rate fluctuations; the
development and commercialization of new products; unexpected
actions of domestic and foreign governments; various events which
could disrupt operations, including natural events and other risks;
uncertainties associated with Molycorp's reserve estimates and
non-reserve deposit information, including estimated mine life and
annual production; uncertainties related to feasibility studies
that provide estimates of expected or anticipated costs,
expenditures and economic returns, REO prices, production costs and
other expenses for operations, which are subject to fluctuation;
uncertainties regarding global supply and demand for rare earths
materials; uncertainties regarding the results of Molycorp's
exploration programs; Molycorp's ability to enter into definitive
agreements with its customers, its ability to supply such
customers, and its ability to maintain customer relationships;
Molycorp's ability to maintain appropriate relations with unions
and employees; Molycorp's ability to attract and retain employees
with the necessary experience, skills and training; Molycorp's
ability to successfully implement its vertical integration
strategy; environmental laws, regulations and permits affecting
Molycorp's business, directly and indirectly, including, among
others, 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 Molycorp; and
uncertainties associated with unanticipated geological conditions
related to mining; and the outcome of the current stockholder class
action litigation and derivative litigation, including any actions
taken by government agencies in connection therewith. For
more information regarding these and other risks and uncertainties
that Molycorp may face, see the section entitled "Risk Factors" of
the Company's Annual Report on Form 10-K for the year ended
December 31, 2014 and of the Company's Quarterly Reports on Form
10-Q. Any forward-looking statement contained in this release or
the Annual Report on Form 10-K or the Quarterly Reports on Form
10-Q reflects Molycorp's current views with respect to future
events and is subject to these and other risks, uncertainties and
assumptions relating to Molycorp's operations, operating results,
growth strategy and liquidity. You should not place undue reliance
on these forward-looking statements because such statements speak
only as to the date when made. Molycorp assumes no obligation to
publicly update or revise these forward-looking statements for any
reason, or to update the reasons actual results could differ
materially from those anticipated in these forward-looking
statements, even if new information becomes available in the
future, except as otherwise required by applicable law.
CONTACT: Company Contacts:
Jim Sims, +1 (303) 843-8062
Vice President Corporate Communications
jim.sims@molycorp.com
Brian Blackman, +1 (303) 843-8067
Vice President Investor Relations
brian.blackman@molycorp.com
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