Molycorp Rare U.S. demand-driven mergers and acquisitions

United States and Europe for Chinese rare earth export restrictions sued WTO, since fluctuations in the international market.
 
REE and trace metals in the U.S. ETF fund strategy (NYSEArca: REMX) continued to rise over last year has risen by 12.4% , rare earth demand is increasing as the economy recovers .

The ETF fund in the 9th up 4.8% in a single day , mainly due to the acquisition of the U.S. company Molycorp rare earth companies listed in Canada to promote a rare earth processing enterprises .

The current global demand for rare earths is about 136,000 tonnes per year , but Marc Humphries Congressional Research institutions predict that figure will rise in 2015 to 18.5 million tonnes to 20 million tonnes by 2020 .

As the Western Hemisphere 's largest reserves of rare earth enterprises , Molycorp owns the Mountain Pass mine in California , but had discontinued the environment and market competition , which plans to resume full operations in April this year . But given the precedent of the previous delay , whether the company can achieve this much actual production capacity is still unknown.

The company hopes to take advantage of rising global demand for rare earths and China's rare earth export controls to promote their own development , it has been and cooperation with Japanese companies built from raw materials to the rare earth magnet production line, and the acquisition of Canadian rare earth processing enterprises Neo Material Technologies is also a for this purpose , so that it can produce various types of magnets, while the latter want to change the status quo by being acquired dependence on Chinese rare earth oxide exports.

Some analysts told Reuters , the acquisition even make Molycorp GM or Toyota itself becomes a potential acquisition target .

In addition to Molycorp, due to the global rare earth supply concerns and the resulting high prices , the capital markets in order to attract investors to the concept of rare earth enterprises unusual.

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