Molycorp, Hitachi Metals agree to form joint ventures

Molycorp has reached an agreement with Japan's Hitachi Metals to form joint ventures to manufacture products using the rare earth ores Molycorp mines.

The announcement said that the two companies expect to sign a deal in April to make neodymium-iron-boron alloys, the building block for a wide range of products. Another joint venture would follow later in the year to manufacture industrial magnets.

Neodymium's properties help to make magnets stronger and smaller. The magnets go into products ranging from windmills to bombs to cell phones.

Molycorp is now restarting mining at its property in Mountain Pass, Calif., about 65 miles south of Las Vegas. As part of it, the company will launch a $532 million project to clear much of the away of the obsolete machinery and buildings on the site and rebuild it.