Rare Earth Names Soaring As Malaysia Stalls Plant

Shares of rare earth names such as MolyCorp (NYSE: MCP), Rare Element Resources (NYSE: REE) and Avalon Rare Metals (NYSE: AVL) are soaring today as Malaysia halted a rare-earth plant that was set to start producing. According to the Wall Street Journal, the $230 million plant was hit by restrictions of the Malaysian government. The company which is constructing the plant, Australia's Lynas Corp. needs to comply with recommendations made by the International Atomic Energy Agency. There were 10 issues that needed to be addresses until the plant can start. The move comes as the world is trying to break China's dominance over the rare-earth metals space, which are used in electronics such as smartphones, laptops, and hybrid cars. China has 90% of the world's production of rare earth metals, and has been limiting its exports, which have caused the prices of these metals to rise, and thus the share prices of rare earth producers. "The government reiterates its position that public safety remains its highest priority and [the government] will do whatever is necessary to ensure this is not compromised," Rebecca Fatima Sta Maria, secretary-general of the Ministry of International Trade and Industry, said in a prepared statement.