Miner Molycorp discloses SEC inquiry

Mining company Molycorp disclosed in its former third quarter report on Thursday that the Securities and Exchange Commission has started an investigation of its public pronouncements.

The three-sentence paragraph noted that the agency had notified the company of the investigation in August "regarding, among other things, the accuracy of the company's public disclosures. The company is cooperating with the staff of the SEC in connection with the investigation. The company cannot predict the length, scope or results of the investigation or the impact, if any, of the investigation on the company's results of operations."

The company issued no further comment.

Already battered by disappointing results in recent quarters, the stock dropped $1.18, or 13.6 percent, to close at $7.50, the all-time low. Trading was halted at one point during the day as investors fled from the stock and quickly caused a 10 percent plunge, triggering a trading circuit breaker designed to cool selling.

In May 2011, the stock crested at $79.16.

Molycorp has revived the open-pit rare earth mine at Mountain Pass, Calif., about 15 miles south of Primm. Molycorp employs 365 people there, the large majority of whom commute from Las Vegas.