Molycorp, Inc.'s MCP Executive VP and
General Counsel, John F. Ashburn, Jr., today announced that the Company has
filed a claim against M&K Chemical Engineering Consultants, Inc. (“M&K”) and
certain current and former officers and owners of M&K in Colorado Federal
District Court arising from a commercial dispute over defects in engineering
services related to the Company's Project Phoenix modernization and expansion
of its Mountain Pass, California, facility.
While the Company generally does not comment on active disputes, Mr. Ashburn
indicated that, due to the high level of public interest in the Project, he
wanted to ensure that the reasons underlying the dispute were clear.
Mr. Ashburn said that the claim was filed in an attempt to recover a portion
of the costs incurred by the Company in rectifying defective engineering
services for which the Company believes the defendants are responsible and
that the effects of the defective engineering underlying the claim have
already been largely mitigated by the Company's Technology Group and other
engineering companies working on the Project. Those defects will not impact
the timing of the Company's plans to ramp up production at its Mountain Pass
facility, Mr. Ashburn said, and the Company still expects to achieve full
Phase 1 production rates by the end of the current quarter as previously
announced.
Mr. Ashburn noted that, while unfortunate, the claim filed by Molycorp
essentially amounts to nothing more than a commercial dispute over monetary
damages.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in