Molycorp's (MCP) Loss May Be Quantum's (OTC:QREDF) Gain

When Molycorp abandoned the Elk Creek niobium deposit during the 1990s, the price of the rare earth element wasn't enough to make the mine profitable.

Since then prices have risen to a level where it has attracted the interest of Vancouver-based Quantum Rare Earth Developments.

A new geology report confirms that a large deposit of niobium resides underneath southeast Nebraska, but more exploration is needed to determine whether a mine will be built on the site or not.

Rare earths extraction is expensive though, so it has yet to be determined if the price of niobium at current levels would be profitable, and if the price is sustainable over a long period of time if capital is allocated to the project.

Niobium is used in cell phones hybrid car batteries and wind turbines, among other products.

Molycorp closed Thursday at $42.56, down $0.86, or 1.98 percent. Quantum Rare Earth Developments closed at $0.523, up $0.0185, or 3.67 percent.