Shares of Molycorp
First off, the company said a recent analysis showed that there are 36% more proven and probable reserves than previously anticipated at Mountain Pass. The study showed that there are 18.4 million short tons of rare-earth ore at an ore grade of 7.98%. That should give the company plenty of ore to mine for the foreseeable future.
Second, China says it is attempting to reform its rare-earth trade association to improve management and environmental efforts in the country. The association will bring a wide range of members together, including Aluminum Corporation of China
The group will also work on a new price mechanism and attempt to ease international trade disputes. It's these disputes that have put a target on China's rare-earth industry, but it's doubtful this will lead to free trade, as the association doesn't appear to be backing off protectionism.
The report out of China could have a positive impact on Molycorp, although speculating on what China will do is tough. There are WTO complaints brought against the country regarding rare-earth minerals, and the future of the export quota is unknown.
Rare Element Resources
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.
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