If you haven’t bought Molycorp (MCP) yet, do it now.
The US may start building its own rare earth stockpile, the aim of a new Congressional bill that’ll counter China’s rare earth dominance.
Just yesterday, a new bill was introduced that could give US rare earth miners significant upside potential, most notably Molycorp. Colorado Congressman Mike Coffman introduced the Rare Earth Supply-China Technology and Resource Transformation (RESTART) Act of 2011, which would establish “a loan guarantee program for the industry and attempt6s to speed up the permitting process,” according to Barron’s.
According to the latest press release found here, the bill would:
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require federal agencies to take appropriate action to expedite permitting and projects that will increase exploration for, and development of, domestic rare earths, including the establishment of a multi-agency federal task force to do so;
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require various cabinet secretaries to appoint executive agents for rare earths;
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establish a temporary, but limited, rare earth industry loan guarantee program;
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establish a Defense Logistics Agency rare earth inventory, from domestic sources, to generate a domestic market and facilitate the domestic sourcing of rare earth alloys and magnets; and
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establish a rare earth program at the US Geological Survey.
This could be huge for US miners…
