Molycorp, Inc.’s wholly owned subsidiary, Molycorp Minerals, acquired Arizona-based Santoku America Inc. (SAI), one of the leading producers of high-purity rare-earth (RE) alloys and metals outside of China, for $17.5 million. In addition, the company completed the acquisition of a 90.023% controlling stake in AS Silmet, one of only two RE processing facilities in Europe, in a transaction valued at approximately $89 million. The SAI acquisition provides Molycorp with the capability to begin manufacturing and selling RE alloys for the production of neodymium iron-boron magnets and samarium-cobalt magnets. The acquisition of AS Silmet provides Molycorp with its first European base of operations and doubles the company’s current RE production capacity from approximately 3,000 metric tons/year of RE oxide to 6,000 metric tons/year.

SAI will begin sourcing RE feed stocks for production of its products from Molycorp’s Mountain Pass, Calif., RE mine and processing facility, making it the first RE metal and alloy producer in North America that is not dependent on RE materials sourced from China. Based in Tolleson, Ariz., the facility has been producing specialty alloys, including RE alloys, for more than 30 years. The company will change its name from SAI to Molycorp Metals and Alloys, Inc.

AS Silmet will begin sourcing RE feed stocks for production of its products from Molycorp’s Mountain Pass, Calif., RE mine and processing facility, making it the first RE oxide and metal producer in Europe that is not dependent on RE materials sourced from China. As part of the transaction, the company also will change its name to AS Molycorp Silmet.