Related-Party Transactions

3 Months Ended

Mar. 31, 2012

Related-Party Transactions

Related-Party Transactions

(20) Related-Party Transactions

        The Company made principal payments of $0.9 million and $3.1 million for the three month period ended March 31, 2012 and for the year ended December 31, 2011, respectively, under the inventory financing arrangement with Traxys North America LLC ("Traxys and affiliates"), the parent of one of the Company's stockholders, TNA Moly Group, LLC. The outstanding amounts payable to Traxys and affiliates under this arrangement were zero and $0.9 million reported on the condensed consolidated balance sheet at March 31, 2012 and December 31, 2011, respectively, under Short-term borrowing—related party, and zero and $2.8 million in Trade Accounts Payable related to the sales made, but not remitted to Traxys and affiliates at March 31, 2012 and December 31, 2011, respectively.

        The Company and Traxys and affiliates also jointly market and sell certain lanthanum oxide, cerium oxide, misch metal and erbium oxide products. Per the terms of this other arrangement, the Company and Traxys and affiliates split gross margin equally once all costs associated with the sale are recovered by both parties. The Company had an outstanding related payable to Traxys and affiliates in the amount of $65,000 and $169,000 at March 31, 2012 and December 31, 2011, respectively.

        During 2011, the Company made purchases of lanthanum oxide from Traxys and affiliates in the amount of $6.2 million, and purchases of yttrium and bastnasite material of approximately $0.7 million.

        At March 31, 2012 and December 31, 2011, Molycorp Silmet had a balance receivable from Traxys and affiliates of $0.4 million and $2.1 million, respectively, related to sales of tantalum metal to Traxys and affiliates of $3.2 million in 2011.