An investment platform backed by Goldman Sachs, Resource Capital Partners and Pegasus Partners has acquired oil giant Chevron’s rare earth mining operations.
Acquisition company Rare Earth Acquisitions, which in addition to its private equity sponsors includes an investment from mineral distribution company Traxys, has agreed to pay an undisclosed sum for Chevron’s Mountain Pass mining operations 50 miles south of Las Vegas, Nevada.
Rare Earth, which after the completion of the purchase will be renamed Molycorp Minerals, will along with the rare earth mine pick up a flotation mill and a specialty refinery.
Rare earth minerals are mined for several different industrial purposes, including as catalysts for oil refiners, magnets for high energy electric motors used in hybrid vehicles and high energy battery applications.
Mountain Pass can provide significant levels of rare earth minerals for the next 30 to 50 years, according to a statement from Chevron.
Chevron owns one other rare earth mine, an open pit mine in California.
Connecticut-based Pegasus Partners is investing from its fourth fund, which closed on $750 million last year.