Research and Development

3 Months Ended

Mar. 31, 2012

Research and Development

Research and Development

(23) Research and Development

        The Company has invested significant resources to improve the efficiency of its REOs processing operations, the development of new applications for individual rare earth elements and exploratory drilling. For the three months ended March 31, 2012 and 2011, and cumulatively for the period from June 12, 2008 (Inception) through March 31, 2012, the Company spent $3.9 million, $1.5 million and $16.5 million, respectively, on research and development. These costs are included in selling, general and administrative expenses on the condensed consolidated statements of operations and comprehensive income, and consist primarily of salaries, outside labor, material and equipment.