In a recent interview, Molycorp (NYSE:MCP) CEO Mark Smith said he hasn't seen so many opportunities to secure joint ventures in almost 25 years.
Smith said, "Let me put it this way ... In my almost 25 years in this business I have never seen the number of opportunities that are available like they are today."
He added they are definitely in the midst of negotiations for other joint ventures at this time.
Most of the shares of companies mining for rare earths have shot up recently on the news that China was going to cut back on exports. China accounts for about 95 percent of rare earths in the world.
Other rare earth companies include China Shen Zhou Mining & Resources (AMEX:SHZ), Rare Element (AMEX:REE), Molycorp, Inc (NYSE:MCP), General Moly (AMEX:GMO), Freeport-McMoran (NYSE:FCX), Thompson Creek (NYSE:TC), and Avalon Rare Metals (AMEX:AVL).
A rare earth ETF is Market Vectors Rare Earth/Strategic Metals ETF (NYSE:REMX).
People do need to understand that rare earths doesn't refer to actual rarity of the minerals, it's more the way they're spread out and more difficult and expensive to mine.
There seems to be a short-term opportunity for profits here, as it won't take too long for those rare earth miners outside of China to take up the slack; probably at most a couple of years.
Molycorp closed Friday at $49.90, down $2.09, or 4.02 percent.
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