Concentrations

6 Months Ended

Jun. 30, 2011

Concentrations [Abstract]

Concentrations

(8) Concentrations

(a) Limited Number of Products

The Company’s current operations at the Mountain Pass facility are primarily limited to the production and sale of REOs from stockpiled concentrates and purchasing and reselling REOs from other producers. The Company does not have and will not have the capability to significantly alter its product mix from its Mountain Pass facility prior to completing the modernization and expansion project and the restart of mining operations. Sales, net of intercompany sales, for the Mountain Pass facility’s most significant products for the three and six months ended June 30, 2011 and 2010, in thousands, were as follows:

	Three
	Months		Six Months
	Ended		Ended
2011	June 30		June 30
Lanthanum products	$	14,948	$	26,414
Ceric Hydrate	$	18,806	$	26,674
Didymium products	$	20,828	$	25,521
Other cerium products	$	3,985	$	5,170

	Three
	Months		Six Months
	Ended		Ended
2010	June 30		June 30
Lanthanum products	$	1,787	$	4,538
Ceric Hydrate	$	—	$	—
Didymium products	$	—	$	105
Other cerium products	$	32	$	46

The tables above reflect revenues from the Mountain Pass facility’s most significant products and do not include revenues from Molycorp Silmet or MMA.

As a result of the acquisition of the 90.023% controlling interest in Molycorp Silmet on April 1, 2011, the Company added additional rare earth products and two new metal products, tantalum and niobium, to its product mix.

From the acquisition of MMA, which also occurred during the second quarter of 2011, the Company added neodymium iron boron (“NdFeB”) alloy and samarium cobalt (“SmCo”) alloy to its product mix.

(b) Limited Number of Customers

There is a limited market for the products currently produced and purchased by the Company. Sales to the Company’s largest customers, for the three and six months ended June 30, 2011 and 2010, in thousands, were as follows:

	Three
	Months		Six Months
	Ended		Ended
2011	June 30		June 30
Mitsubishi Unimetals USA	$	18,627	$	26,394
Hitachi Metals, Ltd.	$	18,328	$	24,113
W.R. Grace & Co. — Conn.	$	2,520	$	8,727
Santoku Corporation	$	8,320	$	8,320
Chuden Rare Earth Co., LTD	$	6,073	$	6,073

	Three Months		Six Months
	Ended		Ended
2010	June 30		June 30
W.R. Grace & Co. — Conn.	$	1,498	$	3,806

(c) Geographic Locations

Currently, the Company’s only mining facility is the Mountain Pass, California facility, and the Company’s viability is based on the successful modernization and expansion of its operations. The deterioration or destruction of any part of the Mountain Pass facility, or legal restrictions related to current or anticipated operations at the Mountain Pass facility, may significantly hinder the Company’s ability to reach or maintain full planned production rates within the expected time frame, if at all.

Through the acquisition of the 90.023% controlling interest in Molycorp Silmet, the Company added a rare earth oxides and metals processing facility in in Sillamäe, Estonia. In addition, the Company acquired Molycorp Metals and Alloys, based in Arizona, which processes and manufactures neodymium and samarium alloy products.