Capital Requirements	6 Months Ended
Jun. 30, 2011
Capital Requirements [Abstract]
Capital Requirements	(3) Capital Requirements Most of the facilities and equipment acquired with the Mountain Pass facility are at least 20 years old and must be modernized or replaced. Under its initial modernization and expansion plan (Project Phoenix Phase 1), the Company intends to spend approximately $531 million through 2012 to restart mining operations, construct and refurbish processing facilities and other infrastructure at the Mountain Pass facility and expand into metal and alloy production. Capital expenditures, on an accrual basis, under this plan totaled $31.4 million in 2010 and $106.4 million during the six months ended June 30, 2011. In January 2011, the Company’s Board of Directors approved a second-phase capacity expansion plan (Project Phoenix Phase 2). Upon the completion of this capacity expansion plan, by the end of 2013, Molycorp expects to have the ability to produce up to approximately 40,000 mt of REO per year at its Mountain Pass facility, or approximately double the amount the Company will be able to produce upon completion of its initial expansion and modernization plan. Management has estimated that Molycorp will incur approximately $250 million, excluding capitalized interest, of capital costs in connection with the second-phase capacity expansion plan in addition to the $531 million, excluding capitalized interest, estimated for the initial modernization and expansion effort. The Company expects to finance its remaining capital expenditures under the initial modernization and expansion and the second-phase capacity expansion plans as well as its working capital requirements, with its available cash balances as of June 30, 2011, and anticipated revenue from operations. Additionally, the Company may elect to satisfy certain capital expenditure requirements through vendor financing, leasing or other financing arrangements. On December 10, 2010, Molycorp entered into a memorandum of understanding with Sumitomo Corporation (“Sumitomo”), pursuant to which Sumitomo agreed to, among other things, purchase $100 million of the Company’s common stock and arrange for $30 million of debt financing. Sumitomo is currently conducting a due diligence review and the consummation of these transactions with Sumitomo is subject to the satisfaction of numerous conditions and finalization of definitive agreements. Prior to securing proceeds for its capital plans through its IPO, the issuance of its 5.5% Series A Mandatory Convertible Preferred Stock (the “Convertible Preferred Stock”) (Note 4n) and its 3.25% Convertible Senior Notes due 2016 (the “Notes”) (Note 4l), the Company submitted a Part I application for a loan guarantee with the U.S. Department of Energy, (“DOE”), in June 2010 for up to $280 million. On July 21, 2010, the DOE deemed the Company’s application eligible for submission of a Part II application, which was submitted on December 31, 2010. Due to program and resource constraints, the application under Section 1705 of the DOE loan guarantee program “LGP” was put on hold on May 10, 2011. At that time, the DOE advised Molycorp that its project may be eligible for funding under Section 1703 of the LGP. The Company has elected to withdraw its application under the DOE loan guarantee program due to its success in raising capital through the Convertible Preferred Stock and the Notes offerings.

(3) Capital Requirements

Most of the facilities and equipment acquired with the Mountain Pass facility are at least 20 years old and must be modernized or replaced. Under its initial modernization and expansion plan (Project Phoenix Phase 1), the Company intends to spend approximately $531 million through 2012 to restart mining operations, construct and refurbish processing facilities and other infrastructure at the Mountain Pass facility and expand into metal and alloy production. Capital expenditures, on an accrual basis, under this plan totaled $31.4 million in 2010 and $106.4 million during the six months ended June 30, 2011. In January 2011, the Company’s Board of Directors approved a second-phase capacity expansion plan (Project Phoenix Phase 2). Upon the completion of this capacity expansion plan, by the end of 2013, Molycorp expects to have the ability to produce up to approximately 40,000 mt of REO per year at its Mountain Pass facility, or approximately double the amount the Company will be able to produce upon completion of its initial expansion and modernization plan. Management has estimated that Molycorp will incur approximately $250 million, excluding capitalized interest, of capital costs in connection with the second-phase capacity expansion plan in addition to the $531 million, excluding capitalized interest, estimated for the initial modernization and expansion effort.

The Company expects to finance its remaining capital expenditures under the initial modernization and expansion and the second-phase capacity expansion plans as well as its working capital requirements, with its available cash balances as of June 30, 2011, and anticipated revenue from operations. Additionally, the Company may elect to satisfy certain capital expenditure requirements through vendor financing, leasing or other financing arrangements.

On December 10, 2010, Molycorp entered into a memorandum of understanding with Sumitomo Corporation (“Sumitomo”), pursuant to which Sumitomo agreed to, among other things, purchase $100 million of the Company’s common stock and arrange for $30 million of debt financing. Sumitomo is currently conducting a due diligence review and the consummation of these transactions with Sumitomo is subject to the satisfaction of numerous conditions and finalization of definitive agreements.

Prior to securing proceeds for its capital plans through its IPO, the issuance of its 5.5% Series A Mandatory Convertible Preferred Stock (the “Convertible Preferred Stock”) (Note 4n) and its 3.25% Convertible Senior Notes due 2016 (the “Notes”) (Note 4l), the Company submitted a Part I application for a loan guarantee with the U.S. Department of Energy, (“DOE”), in June 2010 for up to $280 million. On July 21, 2010, the DOE deemed the Company’s application eligible for submission of a Part II application, which was submitted on December 31, 2010. Due to program and resource constraints, the application under Section 1705 of the DOE loan guarantee program “LGP” was put on hold on May 10, 2011. At that time, the DOE advised Molycorp that its project may be eligible for funding under Section 1703 of the LGP. The Company has elected to withdraw its application under the DOE loan guarantee program due to its success in raising capital through the Convertible Preferred Stock and the Notes offerings.