Molycorp acquires controlling stake in Estonian rare earths processor AS Silmet

Client(s) Molycorp Minerals, LLC

Jones Day represented Molycorp Minerals, LLC and its parent corporation, Molycorp, Inc., in connection with the acquisition of a 90% stake in AS Silmet, a rare earth metal fabricator and processor located in Estonia. The transaction involved the acquisition of outstanding shares of AS Silmet from AS Silmet Grupp (approximately 80%) and Treibacher Industrie AG (approximately 10%). Molycorp, based in Greenwood, Colorado, is a major producer of rare earth oxides. AS Silmet, one of two rare earth processors in Europe, sells products to customers in Europe, North and South America, Asia, Russia, and other former Soviet Union countries. The company's name will change to AS Molycorp Silmet as part of the transaction.

The acquisition marks Molycorp's first presence in Europe and expands its manufacturing capabilities beyond rare earths into the production of the rare metals niobium and tantalum. Rare metals are used in electronics, materials manufacture, optics, health care, chemical process equipment, power generation systems, aerospace, superconductive materials, and other products.

In addition to M&A representation, Jones Day advised Molycorp on the environmental law aspects of the transaction.