Similar news was posted here last August. As a result, it occurred to me that now would be the ideal time to support an American company as it sought funds through an initial offering to reopen it's mining facility. Thus, I invested in Molycorp, Inc. (MCP) stock. At that time the shares cost me $18 each. Four months later MCP shares are selling at $46.18. While it's great to make a profit on an investment, I feel good helping an American company reopen its doors so that one day we won't be so dependent on China.
With this latest news item about China cutting exports to the US, MCP shares will probably continue to climb. As I understand it, Molycorp is in the process of upgrading old machinery and hasn't yet begun operations.
Today we're threatened by China restricting rare earths. How long before we're truly threatened by third-world dictatorships restricting oil exports, especially since Obama wants to
China will cut rare earths export quotas
BBC News Business
December 29, 2010
China has said it will cut exports of rare earth minerals by 10% in 2011.
World manufacturers are heavily reliant on China for these minerals, which are essential for making many electronic goods, such as TVs and PC monitors.
China has 97% of the world's known supply of the goods. The US mined none last year.
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