Mining : Molycorp shareholders to exit sizeable stake, shares slide

Shares in rare earths producer Molycorp slid 2% on Wednesday, after the company said management and some of its biggest shareholders were selling some of their stock equal to about 12% of the company's outstanding stock for up to $662-million.

JP Morgan and Morgan Stanley would underwrite the purchase of up to 11,5-million Molycorp shares, the company said in a prospectus.

The company's stock was trading at $59,44 as at 11:42 on the NYSE.   Belt Conveyor

Share in Molycorp have more than tripled in value since September last year, as a scarcity of rare earth elements production outside of China pushes up prices for the materials, used in a wide range of modern technologies, including advanced missiles, catalysts and wind turbines.

Earlier this month, analysts at Goldman Sachs predicted that prices would continue to climb through to 2013, when mines outside China –which currently accounts for over 95% of global output – start producing, potentially leading to a supply glut and falling prices.  Vibrating Screen

Molycorp spokesperson Jim Sims did not immediately respond to requests for comment.

Resource Capital Funds, Molycorp chairperson Ross Bhappu and Brian Dolan each own 23,4% of the company's outstanding shares.  Cone Crusher Manufacturers