September 7th, 2011

Molycorp Inc. Natural Gas Pipeline

Molycorp, Inc. is currently undertaking a $781 million expansion and modernization of its world-class rare earth mine and manufacturing facility in Mountain Pass, California.

CES is playing a key part in this expansion by helping to negotiate a 8-mile natural gas pipeline lateral across the Mojave Desert to the mine. The lateral will be used to supply natural gas to two 14-MW Solar Titan Cogeneration turbines that will produce the large majority of the electricity to operate the mine.  The cogeneration unit will help to substantially lower the environmental footprint of rare earth manufacturing at the facility.

CES has been involved in all aspects of the project from pro-forma feasibility, interconnection negotiations with the Kern River interstate pipeline and air, and environmental permitting. CES also will assist Molycorp with natural gas commodity procurement once the facility is fully operational in 2012.

In addition, CES has taken over for Molycorp the utility management of power rates and reliabilities with Southern California Edison.

Rare earths are essential to many clean energy, defense, and high tech applications.  Currently, as much as 97% of all the world’s rare earths are produced in China. The Molycorp facility, which is the only operational rare earth mine in the Western hemisphere, is critical to US national security and economic competitiveness in the clean energy and high-tech industries.

CES has helped many large industrials negotiate favorable terms for natural gas pipeline extensions. From pulp & paper mills in Maine to rare earth mining and manufacturing in California, CES has been able to use its customized service offerings and detailed knowledge of energy markets to help US industrial facilities remain competitive in the global marketplace.