News that China was going to cut back on rare earth exports by 11 percent caused the share price of Rare Element Resources (AMEX:REE) to soar, and now the news that Molycorp (NYSE:MCP) won't be starting to work its Mountain Pass mine, as rumors have been insinuating, could push up the share price of Rare Element Resources even more.
The flagship project of Rare Element is located at Bear Lodge, in northeast Wyoming, which they have a 100 percent interest in.
Along with rare-earth elements, they also mine gold.
With China wanting to manage their rare earths more closely and attempt to control the prices to suit them better, that leaves any company outside of China in a strong position as demand for rare earths continue to grow.
Rare Element Resources is one of those positioned to take strong advantage of these realities.
Rare Element Resources was trading at $13.34, up $1.61, or 13.73 percent, as of 2:21 PM EST.
EPA: Molycorp Questa Mine Environmental Disaster
ReplyDeleteJim Cramer could be right by suggesting during a 'Lightning Round' that [MCP] is "to hot to handle" especially in light of the EPA PDF online file...
'Site-In Proposed Cleanup Plan for Molycorp, Inc. Site in Questa'
CLEANUP! See page 22+
Everything Gold: please follow up with more information regarding any charges the high flying rare earth play may incur, in New Mexico.