Molycorp Signs Rare Earth Sales Contracts

Molycorp, Inc. MCP today announced that it has entered into agreements with W. R. Grace & Co. GRA to supply rare earth products to Grace from Molycorp's Mountain Pass, California rare earth facility for a five-year period ending in 2015, which may be extended at Grace's option for an additional three-year period ending in 2018. Under the first contract, Molycorp has agreed to supply Grace with a significant amount of its current Mountain Pass rare earth production through mid-2012. Under the second contract, subject to the completion of Molycorp's new, state-of-the-art production facility at Mountain Pass, which is expected to occur by the end of 2012, Molycorp has agreed to supply over 75 percent of its lanthanum production per year to Grace through the end of the agreement. Grace will utilize various forms of lanthanum produced by Molycorp for the manufacture of fluid catalytic cracking catalysts and additives that enable petroleum refiners to improve yields and product quality.