Property, Plant and Equipment, net

3 Months Ended

Mar. 31, 2012

(6) Property, Plant and Equipment, net

The Company capitalized $265.8 million and $416.8 million in plant modernization and other capital costs for the three months ended March 31, 2012 and the year ended December 31, 2011, respectively. These amounts include capitalized interest of $3.8 million and $7.5 million, respectively.

Capital expenditures under the Company's initial modernization and expansion efforts, including the accelerated start-up of the Molycorp Mountain Pass facility ("Project Phoenix Phase 1"), and the Company's second phase capacity expansion plan ("Project Phoenix Phase 2"), and other capital projects related to operations at Molycorp Mountain Pass totaled $253.6 million and $388.5 million for the three months ended March 31, 2012 and the year ended December 31, 2011, respectively, on an accrual basis and excluding capitalized interest.

At March 31, 2012 and December 31, 2011, property, plant and equipment consisted of the following (in thousands):

	March 31, 2012			December 31, 2011

Land	$	11,350		$	11,059
Land improvements		15,912			15,748
Buildings and improvements		26,376			23,677
Plant and equipment		85,752			68,441
Vehicles		1,548			1,235
Computer software		4,425			3,002
Furniture and fixtures		635			464
Construction in progress		683,860			436,547
Mineral properties		24,790			24,692

Property, plant and equipment at cost		854,648			584,865
Less accumulated depreciation		(26,932	)		(23,237	)

Property, plant and equipment, net	$	827,716		$	561,628

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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