Related-Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related-Party Transactions

Related-Party Transactions

Transactions with Traxys North America LLC

The Company made principal payments of $3.1 million during fiscal 2011 under the inventory financing arrangement with Traxys North America LLC (“Traxys and affiliates”), a subsidiary of one of the Company’s stockholders, Traxys S.a.r.l. This arrangement expired in 2011.The outstanding amount payable to Traxys and affiliates under this arrangement was $0.9 million reported under Other current liabilities on the consolidated balance sheet at December 31, 2011. Molycorp also had an outstanding amount payable to Traxys and affiliates under the same arrangement of $2.8 million reported in Trade accounts payable at December 31, 2011 associated with product purchased from Traxys and affiliates in 2011. The Company made purchases of lanthanum oxide from Traxys and affiliates in the amount of $6.2 million in 2011.

The Company and Traxys and affiliates also jointly market and sell certain lanthanum oxide, cerium oxide, misch metal and erbium oxide products. Pursuant to 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 party receivable from Traxys and affiliates in the amount of $0.2 million at December 31, 2011 and none in 2012.

At December 31, 2011, Molycorp had also a balance receivable from Traxys and affiliates of $2.1 million related to sales of tantalum metal to Traxys and affiliates of $3.2 million in 2011. There were no sales to and accounts receivable from Traxys and affiliates in 2012.

Transactions with Neo Material Technologies Inc.

During the period from January 1, 2012 to June 11, 2012, Molycorp sold neodymium/ praseodymium oxides for $4.3 million and heavy rare earths for $1.6 million to Neo Material Technologies, Inc. There were no sales between the companies in the comparative 2011 period. The related intercompany accounts receivable and payable were eliminated in consolidation.

Transactions with equity method investees: TMT, Keli and Ingal Stade

The Company supplies Neo Powders™ to TMT to produce rare earth magnetic compounds. Molycorp then purchases these compounds back from TMT in its normal course of business. Additionally, Keli processes rare earth oxides into metals for inclusion in the Neo Powders™.

For the period from June 12, 2012 to December 31, 2012, the Company sold $1.6 million of Neo Powders™ to TMT and purchased $2.8 million worth of compounds from TMT.

The Company purchased metals and received services from Keli for a total of $32.6 million for the period from June 12, 2012 to December 31, 2012.

Ingal Stade sells gallium to the Company's facilities located in Ontario, Canada and to some of its facilities in the United States. For the period from June 12, 2012 to December 31, 2012, the Company purchased $3.3 million of gallium metal from Ingal Stade.