The largest rare earth enterprise in the United States, American Molybdenum Mining Company, is facing operational difficulties. Its closing stock price fell 35.3% on March 17th, and its current stock price is only 48 cents, compared to its highest point in 2011 of $80 per share. The US audit agency has questioned the company's ability to continue operations, and the molybdenum mining company stated that it is currently undergoing debt restructuring, and if the restructuring fails, there may not be enough funds to sustain operations.

The largest rare earth enterprise in the United States, American Molybdenum Mining Company, is facing operational difficulties. Its closing stock price fell 35.3% on March 17th, and its current stock price is only 48 cents, compared to its highest point in 2011 of $80 per share. The US audit agency has questioned the company's ability to continue operations, and the molybdenum mining company stated that it is currently undergoing debt restructuring, and if the restructuring fails, there may not be enough funds to sustain operations.

The American molybdenum mining company, which used to be the world's largest rare earth production enterprise, aims to revive its former glory. In the past, this used to be the world's largest rare earth mine, but it was closed in 2002. After entering 2010, due to the implementation of rare earth export restrictions in China, rare earth prices skyrocketed. Therefore, molybdenum mining companies decided to restart production.

In 2012, the company acquired mines in California for $1.3 billion and plans to establish a 40000 ton production system in 2013, which accounts for approximately 30% of global production capacity annually. Their ambition is to push China to the second position in the global rare earth industry through cooperation with Australian rare earth companies and Japanese rare earth operating companies.

The molybdenum mining company once calculated that if they start at full capacity, their production cost would be around $3 per ton, which is only 20% of China's production cost. The average hourly wage of workers is $25, which is about 8 times the labor cost in China. However, the company will use other methods to build price competitiveness beyond that of Chinese rare earth enterprises.

This plan may seem grand, but it is not so optimistic. In fact, even if the Mentingpas mine in the United States is mined again, the country has lost many of its capabilities to use rare earths in manufacturing. For example, a weakness of molybdenum mining companies is that they cannot produce dysprosium, which is essential for high-performance motors. China, which has an overwhelming advantage in dysprosium production, may find a breakthrough here.

Industry insiders believe that China may launch a low price offensive to defeat its competitors, as it did in the 1980s. Three years have passed and its effects have been demonstrated. Especially in May of this year, China will cancel rare earth tariffs, and rare earth export prices will once again decrease. Foreign rare earth manufacturers such as American molybdenum mining companies will find it difficult to compete with China's rare earth enterprises.

Currently, molybdenum mining companies are facing difficulties in operation and their production has decreased, which means that the US rare earth industry's plan to challenge China has failed. In fact, the international rare earth resource stock has not changed much, and the majority of its rare earth resources are still in China. China remains the sole leader in rare earth resources, production, and supply. Now, increasing the procurement of rare earths from foreign markets in China can help digest the inventory of rare earths.