Much has been written about rare earth metals. They are used in electronics, batteries and specialized magnets. China controls more than 90% of rare earth production and has put a ban on exports of the minerals.
The largest miner of rare earths outside China is Molycorp (MCP), a U.S.-based company. The company mines lanthanide and molydenum. Lanthanides include cerium, lanthanum and yttrium. These exotic elements are used in cell phones, computers, X-ray film and TV glass.
Barrons reports that Molycorp has acquired 90% of AS Silmet, a European rare earth metals processor, for $89 million. AS Silmet is one of only two rare earth processors in Europe.
The acquisition increases Molycorp's processing capacity by 50%. Mark A. Smith, president and CEO of Molycorp, said: "This acquisition provides Molycorp with a European base of operations as well as a larger global customer base, greater rare earth production capacity and an expanded product line that extends our interests into other strategic metals and technologies."
Last July, Molycorp went public. The stock has since increased nearly sixfold. The stock jumped to a 52-week high of $67.15 on Monday.